Former Morgan Stanley broker files whistleblower suit

June Strunk says Mystic, Conn., managers ignored complaints about broker improprieties and then ostracized her

Apr 13, 2018 @ 2:41 pm

By InvestmentNews

A former Morgan Stanley broker in the firm's Mystic, Conn., office has filed a whistleblower suit alleging that management ignored her complaints about alleged investment improprieties and then ostracized her.

June Strunk, who had been with the firm 18 years and is now with Janney Montgomery Scott, is seeking more than $1 million in compensatory and punitive damages, according to a report on ConnecticutLawTribune.com.

Ms. Strunk said that part of her job at Morgan Stanley involved reporting conduct she believed violated U.S. securities laws, according to the website. In one case, she complained to the complex manager that two brokers had engaged in questionable behavior related to the sale of a client's mutual funds.

"The funds were of low value, which resulted in clients paying maximum commission charges," the lawsuit states, "and Ms. Strunk believed that this practice violated federal securities laws because she believed that they violated fiduciary obligations."

The lawsuit alleges that "without any basis or specific examples," a firm manager informed Ms. Strunk that financial advisers in the Mystic branch were complaining about her. "Mrs. Strunk founder herself in the crosshairs of an escalating harassment campaign," according to the lawsuit.

The lawsuit gives many examples of alleged misconduct that the firm allegedly did not address.

A spokesman for Morgan Stanley did not respond to the website to a request for comment.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

What can advisers learn from the first female fighter pilot?

Pressure is pressure. Whether you are taking off from an aircraft carrier or dealing with the unforgiving movements of the market, you need to have a plan. Carey Lohrenz, the world's first female F-14 pilot, has some advice for advisers.

Latest news & opinion

Captrust, prominent 401(k) advice firm, ramps up its wealth management business

Captrust wants to grow annual revenue from wealth management to 50% from 30% over the next five years.

Fidelity CEO says zero-fee funds aimed at expanding its universe

Johnson says way to prosper in financial services is 'by building relationships.'

SEC advice rule contains a huge hole

Jay Clayton aims to clear up investor confusion by drawing a distinction between brokers and advisers in the agency's proposed package of revised standards. But where do dual registrants fit?

9 signs it's time to fire your client

Here are signals that a client should be asked to leave, according to experienced financial advisers.

10 years later, advisers still shudder recalling the financial crisis

Historic chain of market events left advisers and investors more skeptical, cautious

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print