Securities Arbitration Lawyers BlogMichael Carter Barred After Unauthorized Withdrawals Totaling $5.2M
Michael Carter (Michael Barry Carter CRD# 1373405) is a barred broker who was formerly registered with Morgan Stanley (CRD# 149777) out of their McLean, Virginia branch office. He had previously worked for Ameriprise Financial Services, Inc. (CRD# 6363) in Vienna, Virginia. Carter had been in the securities industry since 1999.
Michael Carter Disclosures
Michael Carter’s publicly-available FINRA BrokerCheck report lists seven disclosures, including four customer disputes (all involving misappropriation or unauthorized withdrawals), one employment separation after allegations, and two regulatory disclosures.
February, 2020: A regulatory disclosure from FINRA indefinitely suspended Carter from associating with a FINRA member firm in all capacities for “failure to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.”
November, 2019: A customer dispute alleged misappropriation from client’s account from 2012-2019 and requested $6,838,155.55 in damages. The dispute was settled for $1,300,000.
October, 2019: A customer dispute alleged “Client did not authorize withdrawals in the account that took place between 2/2007-08/204.” $4,000,000 in damages were requested. The dispute was settled for $3,193,500.
September, 2019: A customer dispute alleged that “Client was unaware of withdrawals in the account that took place between 6/2015 and 9/2017.” The dispute was settled for $676,174.0.
September, 2019: A regulatory disclosure states that “Carter consented to the sanction and to the entry of findings that he failed to provide documents and information requested by FINRA during the course of an investigation initiated after FINRA received an external tip relating to allegations of misconduct that were ultimately contained in a Form U5 filed by his member firm.”
September, 2019: A customer dispute states that “Client’s POA agent verbally alleged that a Liquidity Access Line was opened without authorization and certain withdrawals were unauthorized – December 2017 through May 2019.” The dispute was settled for $1,357,841.68.
July, 2019: Carter was discharged from Morgan Stanley after “allegations he misappropriated client finds.”
Misappropriation And Unauthorized Transactions
Investors may have a hard time recognizing when an unauthorized transaction or misappropriation of funds has occurred because these transactions use money already in their account and do not require them to deposit any new funds. Investors should look at all their statements and transaction confirmations to make sure there are no unauthorized activity.
Do You Have Investment Losses With Michael Carter or Morgan Stanley?
If you have investment losses with Michael Carter or Morgan Stanley, please contact Scott Silver of the Silver Law Group at ssilver@silverlaw.com or toll free at (800) 975-4345 for a no-cost consultation to discuss options to recover your losses.
Silver Law Group represents investors in securities and investment fraud cases, including stockbroker misconduct, unauthorized withdrawals, and misappropriation. Silver Law Group has extensive experience representing investors whose financial advisor has improperly taken or borrowed money. Our securities fraud attorneys have represented many elderly investors for fraud cases including claims that stockbrokers have taken money from a customer’s account.
Most cases are handled on a contingency fee basis, meaning nothing is owed unless we recover money for you. Contact us today.