Broker Investigation: Peter Lewis of Morgan Stanley

On March 5th, 2018, a customer filed a complaint against Peter Lewis, alleging that he caused an investor to sustain major losses due to excessive trading. Here, our investment fraud team reviews the complaint against Mr. Lewis. All information in the article has been sourced directly from FINRA.

Investor Complaint: Peter Lewis

Brokers have a responsibility to treat their customers in an ethical and fair manner. In March, a Morgan Stanley investor filed a complaint alleging that major investment losses were sustained because of the misconduct of Peter Lewis. Specifically, the investor alleged that Mr. Lewis made excessive trades.

Also known as churning, excessive trading occurs when a broker makes an unreasonable number of trades on behalf of an investor. In doing so, the broker rakes in a large number of commissions, while the investor’s portfolio slowly loses value due to all of the additional fees. Brokers must have a reasonable basis to make all trades.

According to the information provided by FINRA, this investor is seeking $540,000 in financial compensation from Mr. Lewis. As of late May of 2018, this case is still listed as pending. No settlement or final ruling has been made.

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