Former Morgan Stanley Broker Hilary J. Zimmerman Under Investigation Over Unauthorized Trading Allegations

Silver Law Group is investigating former Mississippi-based Morgan Stanley (CRD# 149777) broker Hilary J. Zimmerman (CRD# 2191841) over unauthorized trading allegations.

According to Zimmerman’s FINRA BrokerCheck report, Zimmerman is the subject of seven (7) disclosures.  Out of the seven disclosures, Zimmerman has had three (3) settled on his behalf and one (1) in which a FINRA arbitration panel found in favor of the claimants.

In 2010, multiple claimants alleged Zimmerman excessively traded their accounts in unsuitable transactions, and the FINRA arbitration panel awarded over $387,000 to the claimants.

Then, over the course of three weeks in the months of March and April 2013, three (3) FINRA arbitrations against Zimmerman and Morgan Stanley settled for almost $1.2 million in the aggregate.

Currently, one (1) FINRA arbitration complaint remains pending against Zimmerman.  The complaint alleges that Zimmerman made unauthorized and unsuitable trades in the customer’s accounts.  Further, the complaint alleges Zimmerman misrepresented the investment strategy.  The complaint alleges $1 million in damages.

Most recently, the Mississippi Secretary of State’s Office, Securities Division opened an investigation into Zimmerman over possible breaches of Mississippi Securities Act violations.  Zimmerman agreed to surrender his registration as part of his permanent retirement, according to Zimmerman’s BrokerCheck report.

Morgan Stanley employed Zimmerman from 2009 to 2017, according to Zimmerman’s BrokerCheck report.

When a customer opens an account with a broker and brokerage firm, the customer can choose whether or not he or she wants to give the broker to trade discretionarily in order to capitalize as quickly as possible on an ever-changing market.  Often times, customers choose to reserve that right and have the final “OK” before a broker facilitates a transaction.

Unauthorized trading is when a broker facilitates a transaction without the permission of the customer in a non-discretionary account.  According to FINRA, it is one of the common investor issues along with misrepresentation, cold-calling, and unsuitability.

Unauthorized discretion is a serious form of broker misconduct.  A broker’s employing firm is responsible for overseeing the broker to prevent such misconduct.  Failure to supervise is a claim made against a brokerage firm in these situations.

FINRA arbitration is a fast, efficient way to recover your lost investment funds due to unauthorized trading.  We work on a contingency fee basis, meaning you pay us nothing unless we win and recover money for you.

If you have invested with Hilary J. Zimmerman and Morgan Stanley and have lost money doing so, you may be able to recover some or all of your losses.  Our lawyers are experienced in recovering investor losses due to broker and brokerage firm misconduct through FINRA arbitration.

Silver Law Group represents the interests of investors who have been the victims of investment fraud.  If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.