April 18, 2018 Comments (0) Blog, Current Investigations, Securities Fraud

Update on James Polese – Morgan Stanley – Securities Investigation

James Polese

Recover your Investment Losses – Boston Advisor James Polese

According to reports today, a FINRA arbitrator ordered former advisor James Polese to pay Morgan Stanley $372,000 for fraud, stealing and breach of fiduciary duty.

As we told you in January, James Polese pleaded guilty in January to federal criminal charges accusing him of stealing client funds.

This comes after Polese was reportedly barred by the Financial Industry Regulatory Authority (FINRA), and fired by Morgan Stanley last June, according to his broker report.

Morgan Stanley will reportedly receive the full claim made against Polese, who is also facing fraud charges from the Securities and Exchange Commission.

According to the award made on Thursday, Polese did not file a statement of answer to the claim nor hire a lawyer to represent him. The arbitrator also ordered Polese to reimburse Morgan Stanley $1,600 for the non-refundable filing fee and a decision fee paid to FINRA.

Polese and his partner Cornelius Peterson allegedly stole close to $500,000 from two customers that they used to invest in a wind farm project, according to the U.S. Attorney’s Office in Boston. According to the documents, Polese also allegedly paid his children’s college tuition and credit card bills with the stolen money.

According to FINRA Brokercheck, Polese was registered with Morgan Stanley from May 2010 until he was fired last June. He has 9 disclosure events listed on his broker report.

Polese is scheduled to enter his criminal plea on April 26.

Failure to Supervise

The White Law Group is investigating potential claims regarding the liability that his employer may have for failure to properly supervise James Polese.

Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

Brokers have a fiduciary duty to make investment recommendations that are consistent with the clients net worth, investment experience and objectives. Risk tolerance, age, and liquidity needs also need to be considered.

When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.

Are you concerned about your investments with James Polese? If so, the securities attorneys of The White Law Group may be able to help. For a free consultation with a securities attorney, please call 888-637-5510.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.