Former broker Antoine Souma has been ordered to pay Morgan Stanley nearly $6.4 million in compensatory damages related to two promissory notes paid to him as recruitment compensation. After a panel of arbitrators concluded that prohibited broker Antoine Nabih Souma (CRD# 4210987) owes his former employer, Morgan Stanley, $6.4 million in compensatory damages, national investment fraud lawyers Haselkorn & Thibaut continue their investigation of Souma.
From 2020 to 2022, Souma was registered with Insigneo Securities in Beverly Hills, California, and from 2016 to 2020, he was registered with Morgan Stanley in Los Angeles, California, according to FINRA’s BrokerCheck database.
Since April 2021, Souma has also operated as an investment advisor named Galliott Capital Advisors in Beverly Hills, California.
To schedule a free and confidential consultation to discuss legal possibilities, investors who have lost money following Antoine Souma’s recommendations are encouraged to contact the law office xxxx We do not charge legal costs unless we win a settlement or judgment on your behalf.
According to the clawback agreement, Antoine Souma must pay Morgan Stanley $6.4 million.
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Investment advisor Antoine Souma of Beverly Hills, California, has been forced to pay roughly $6.4 million in compensatory damages to his former employer Morgan Stanley for two promissory notes the firm paid the former broker as recruitment compensation. The arbitration ruling claims that in 2016 when Morgan Stanley poached Souma from J.P. Morgan Advisers, the business paid Souma millions (formerly J.P. Morgan Securities).
When Morgan Stanley first employed Souma, he had $3 billion in assets under his team’s control, making them the 76th best financial advisory firm in the US, according to Barron’s 2016 Top 100 Financial Advisers. Investors who had previously complained about Souma’s lack of supervision at J.P. Morgan Securities were compensated $14 million in August of this year. The claimant investor stated that Souma committed many securities violations, including excessive and unsuitable trading, improper judgment, and fabricated performance reports.
Morgan Stanley sued Souma for not paying back the promissory notes on November 17, 2020. Antoine Souma and Morgan Stanley settled on March 10, 2022, with Souma agreeing to pay Morgan Stanley $7,865,991. Between January 25, 2023, Souma allegedly paid $1,475,000.
Souma is said to have contested Morgan Stanley’s allegations and filed a complaint against the firm for defamation, promissory fraud, tortious and negligent interference with prospective economic advantage, breach of contract, and other claims in January 2021 before the settlement. The arbitrators found in favor of Morgan Stanley and dismissed all counterclaims by Souma.
Three arbitrators decided in favor of Morgan Stanley, awarding them $6,390,991 (the total amount due on the two promissory notes as of January 25, 2023), plus interest at 7% per year until the award is paid in full. Morgan Stanley was also awarded $7,500 in attorney expenses, which Souma was ordered to pay.
The Financial Industry Regulatory Authority (FINRA) issued an AWC to Souma in November 2021, suspending him from the securities industry for two months and fining him $20,000. The suspension and fine were in response to allegations that Souma had provided several customers with inaccurate and misleading account reports that misrepresented their accounts’ values and performance.
So how can I get my money back?
There are many ways an investor can file claims to recover losses. One of the most popular ways is to file a FINRA complaint.
The investor claims Souma inflated the investor’s risk profile, failed to report trades, and participated in improper trading practices such as excessive trading (or “churning”), the use of margin, and an unapproved trading technique. Investors in Antoine Nabih Souma are urged to research their compensation options.
Losing investors in Antoine Nabih Souma may be eligible for compensation. You should get in touch with our experienced lawyers to talk about your legal alternatives for financial reimbursement. We do not charge for consultations; we only get paid if we win your case.