SEC Charges Morgan Stanley Broker Shawn E. Good with Defrauding Clients in Ponzi Scheme

UPDATE: Former Client of Shawn E. Good Files a Lawsuit Against Morgan Stanley for Lack of Supervision

Sonn Law Group is Investigating Morgan Stanley Broker Shawn Good Who Has Been Accused by the SEC of Running a Ponzi-Like Scheme to Defraud his Investment Clients Out of Millions

The SEC complaint states that “Beginning in or about December 2012, and continuing through at least February 2022, Good solicited clients to transfer funds to his personal bank account, ostensibly to make low-risk investments in real-estate development projects and supposedly tax-free government bonds. But Good instead use those funds to repay other investor victims and to pay his personal expenses.”

Sonn Law Group is interested in hearing from clients of Shawn Good. These allegations – that Good has been running a decade long Ponzi scheme to defraud his clients out of millions of dollars – are deeply troubling. Brokerage firms like Morgan Stanley have a duty to supervise their investment advisors. If they failed to do so in this case, that creates liability, and investors can pursue damages in the form of a FINRA arbitration claim.

Sonn Law Group is a nationally-recognized leader in securities law. We dedicate our practice exclusively to helping defrauded investors recover compensation. If you or a loved one has suffered losses investing with Shawn E. Good we invite you to contact our firm for a free, no-obligation consultation to discus your options.

Details of the Allegation Against Ex-Morgan Stanley Broker Shawn Good

On April 18, 2022, the SEC charged North Carolina broker and investment adviser, Shawn Good, with defrauding clients and misappropriating millions of dollars of investor funds.

The SEC alleged Good raised approximately 4.8 million from five of his Morgan Stanley clients to make investments that he touted as low-risk tax-free bonds and land-development projects. Instead, Good used the money to repay other victims of his scheme and pay his own personal expenses, including international travel and credit card bills.

The SEC alleged that Good violated the antifraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. The SEC seeks preliminary and permanent injunctive relief, an asset freeze, an accounting, disgorgement of ill-gotten gains plus prejudgment interest, and civil penalties.