Juan Elwaw, a broker and investment advisor at Morgan Stanley, is currently under investigation by Haselkorn & Thibaut, a national investment fraud law firm, following allegations of unauthorized trading. The claim, made by the estate of a deceased client, alleges that Elwaw engaged in unauthorized trading of equity investments from August 2014 through November 2015.
According to FINRA BrokerCheck, the customer dispute is currently pending, and the damage amount requested has not been disclosed. Elwaw has been registered with Morgan Stanley in Florida since June 1, 2009, and currently holds both broker and investment advisor registrations.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a Forbes article, investment fraud costs Americans billions of dollars each year, with many victims being elderly or inexperienced investors.
Understanding unauthorized trading
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Unauthorized trading occurs when a broker or investment advisor makes trades in a client’s account without obtaining prior consent. FINRA Rule 2010 requires brokers to observe high standards of commercial honor and just and equitable principles of trade, which includes obtaining authorization before executing trades on behalf of clients.
In simple terms, brokers must always seek permission from their clients before making any investment decisions. Failing to do so is a direct violation of FINRA rules and can result in disciplinary action, including fines, suspensions, or even permanent barring from the industry.
The impact on investors
Unauthorized trading can have severe consequences for investors, as it exposes them to unintended risks and potential financial losses. When a broker makes trades without the client’s knowledge or consent, the investor’s portfolio may be subjected to investments that do not align with their risk tolerance, financial goals, or investment strategy.
Moreover, unauthorized trading can erode trust between investors and their financial advisors, making it difficult for clients to feel confident in the management of their investments. This breach of trust can lead to increased stress, anxiety, and uncertainty regarding the future of their financial well-being.
Recognizing red flags and seeking help
Investors should be vigilant in monitoring their investment accounts and be aware of potential red flags that may indicate financial advisor malpractice, such as:
- Unexplained or unexpected trades in their account
- Inconsistencies between verbal discussions and actual traded executed
- Evasive or dismissive behavior from the advisor when questioned about trades
If investors suspect that their financial advisor has engaged in unauthorized trading or other forms of misconduct, they should contact a qualified investment fraud attorney. Haselkorn & Thibaut, with offices in Florida, New York, North Carolina, Arizona, and Texas, has over 50 years of combined experience in helping investors recover losses through FINRA arbitration.
With a 98% success rate and a “No Recovery, No Fee” policy, Haselkorn & Thibaut is committed to protecting investors’ rights and holding financial advisors accountable for their actions. Investors can contact the firm toll-free at 1-888-885-7162 for a free consultation.
The role of FINRA arbitration
FINRA arbitration is a critical process for investors seeking to recover losses caused by financial advisor misconduct, such as unauthorized trading. This dispute resolution process is designed to be faster and more cost-effective than traditional court proceedings, allowing investors to present their case before a neutral panel of arbitrators.
Experienced investment fraud attorneys, like those at Haselkorn & Thibaut, can guide investors through the FINRA arbitration process, helping them build a strong case and advocating for their rights. By pursuing FINRA arbitration, investors can hold their financial advisors accountable and work towards recovering the losses they have suffered due to unauthorized trading or other forms of misconduct.
Haselkorn & Thibaut is currently investigating the allegations against Juan Elwaw and Morgan Stanley. If you believe you have been a victim of unauthorized trading or other forms of financial advisor misconduct, contact Haselkorn & Thibaut today at 1-888-885-7162 for a free consultation.
