Haselkorn & Thibaut has opened an investigation into La Jolla financial advisor James Garrity (CRD# 2005714) following recent investor complaints regarding alleged misrepresentations of investment strategies. The national investment fraud law firm is examining claims against the Morgan Stanley representative to help investors understand their rights and potential recovery options.
Understanding the Recent Complaints Against James Garrity
Table of Contents
Investment professionals hold a position of trust, and when that trust appears compromised, it’s natural to feel concerned about your financial future. Two separate investor complaints have been filed against Mr. Garrity, both centering on similar allegations about covered call options strategies.
The most recent complaint, filed in July 2025, alleges that Garrity made misrepresentations regarding a covered call options strategy while working as a Morgan Stanley representative. While the complaint remains pending with damages unspecified, the similarity to a previous complaint raises important questions for current and prospective clients.
Looking back, a 1999 complaint resulted in a substantial $352,000 settlement. This earlier case, filed when Garrity was with Goldman Sachs, also involved allegations of misrepresenting the risks associated with covered call options strategies. When patterns emerge in complaint histories, investors deserve to understand what these red flags might mean for their portfolios.
What Are Covered Call Options and Why Do They Matter?
For many investors, options strategies can seem complex and intimidating. A covered call strategy involves owning shares of stock and selling call options against those shares to generate additional income. While this can be a legitimate investment approach, the risks and potential limitations must be clearly explained to ensure it aligns with your financial goals and risk tolerance.
When advisors allegedly misrepresent these strategies, investors might:
- Face unexpected losses during market upswings
- Miss out on significant gains if stocks are called away
- Misunderstand the tax implications
- Be unprepared for the strategy’s complexity
James Garrity’s Professional Background and Current Standing
Understanding your advisor’s background helps you make informed decisions about your financial relationships. Garrity brings 35 years of securities industry experience to his role at Morgan Stanley, where he’s been registered since 2015. He operates from both La Jolla, California and Salt Lake City, Utah locations.
| Career Timeline | Firm |
|---|---|
| 2015 – Present | Morgan Stanley |
| Prior Experience | Credit Suisse Securities |
| Prior Experience | Donaldson Lufkin & Jenrette |
| Prior Experience | Goldman Sachs |
His credentials include passing seven securities industry qualifying examinations and maintaining 34 state licenses. These qualifications demonstrate extensive knowledge of securities regulations and investment strategies, which makes the nature of the complaints particularly noteworthy.
Red Flags Investors Should Consider
When evaluating your relationship with any financial advisor, certain patterns deserve careful attention. Multiple complaints involving similar allegations can indicate systematic issues rather than isolated incidents. In this case, both complaints center on covered call options strategies spanning different firms and decades.
Consider these important factors:
- Pattern of complaints: Two separate incidents involving similar investment strategies
- Significant settlement history: The $352,000 settlement suggests serious concerns were addressed
- Pending matters: Current unresolved complaints may impact future client relationships
- Complex strategies: Options trading requires clear, accurate communication about risks
Your Rights as an Investor
FINRA rules protect investors from misleading practices in the securities industry. Brokers cannot use manipulative, deceptive, or fraudulent devices when recommending or executing trades. When these standards are violated, investors have the right to seek recovery for their losses.
If you’ve experienced:
- Unexplained losses in options strategies
- Investments that didn’t perform as described
- Confusion about the risks you were taking
- Strategies unsuitable for your investment goals
You may have grounds for recovering your losses.
Taking Action to Protect Your Financial Future
Knowledge empowers better decisions. Whether you’re a current client concerned about your investments or someone who has already experienced losses, understanding your options matters. Haselkorn & Thibaut brings over 50 years of experience helping investors nationwide recover from securities fraud, with a 98% success rate and millions recovered for clients.
The firm operates on a contingency basis, meaning no recovery equals no fee. This approach ensures that seeking justice doesn’t add financial burden to an already stressful situation.
Time limits apply to investment loss claims, making prompt action essential. Documentation, account statements, and correspondence all play crucial roles in building a strong case for recovery.
Get Your Free Consultation Today
Your financial security deserves protection. If you have concerns about your investments with James Garrity or Morgan Stanley, or if you’ve experienced losses that seem connected to misrepresented investment strategies, Haselkorn & Thibaut is here to help.
The experienced team at investmentfraudlawyers.com understands the complexity of securities fraud cases and the emotional toll investment losses can take. They’re ready to review your situation, explain your rights, and outline potential paths to recovery.
Don’t wait to explore your options. Call Haselkorn & Thibaut today at 1-888-885-7162 for your free, confidential consultation. There’s no obligation, just honest guidance about your situation and potential next steps. Your financial future matters, and you deserve advocates who will fight for your rights.
