Broker Investigation: Cornelius Peterson

Cornelius Peterson (CRD#: 5769919) is a previously registered securities broker. From 2011 to 2017, Mr. Peterson was employed as a representative at Morgan Stanley based at an office in Boston, Massachusetts. In June of 2017, this broker was terminated by Morgan Stanley after allegations arose that he misappropriated client assets.

In September of 2017, FINRA barred this broker from the securities industry. He is now also under criminal investigation. Here, our dedicated investment fraud lawyers offer an overview of the allegations against Cornelius Peterson.

Allegations of Misconduct: Former Morgan Stanley Broker Cornelius Peterson

Cornelius Peterson was initially barred from the securities industry in September of 2017 for his failure to cooperate into allegations of misconduct. Since that time, the Securities and Exchange Commission (SEC) has filed civil investment fraud charges and criminal charges have been filed by Massachusetts authorities.

According to the complaint filed by the SEC, Mr. Peterson and a second Boston-area broker defrauded multiple investors out of more than $500,000. Beyond the general breach of fiduciary duty, the SEC alleges that Mr. Peterson misappropriated client funds and made several unauthorized transactions. Investigators contend that Cornelius Peterson and his co-conspirator unlawfully used investor money as collateral to obtain a loan for their own (high-risk) private entity.

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