The Securities and Exchange Commission has barred former Morgan Stanley broker Cornelius Peterson, who has pleaded guilty to investor adviser fraud and bank fraud.
The former broker and investment adviser was employed by Morgan Stanley in Boston from 2011, when he began his career, until June 2017, when he was terminated.
After failing to provide the Financial Industry Regulatory Authority Inc. with information it requested about his activities, Mr. Cornelius was barred by Finra in December 2017.
In its criminal action running parallel with the SEC's civil case, the U.S. Attorney's Office charged Mr. Cornelius and another broker/investment adviser at Morgan Stanley with stealing nearly $450,000 from one elderly client and using the money for their own investments and to pay personal bills. The two brokers also put client money into investments in which they held a financial interest, breaching their fiduciary duty.