Former Morgan Stanley adviser accused of Ponzi scheme in SEC suit

Former Morgan Stanley adviser accused of Ponzi scheme in SEC suit
Shawn E. Good, from Wilmington, North Carolina, had clients send funds to his personal bank account to supposedly make low-risk investments in real-estate development projects,
APR 19, 2022
By  Bloomberg

A former Morgan Stanley adviser was sued by federal securities regulators for using clients’ money to pay for personal expenses including a Tesla Inc. car, credit card bills and cash transfers.

Shawn E. Good, 55, from Wilmington, North Carolina, had clients send funds to his personal bank account to supposedly make low-risk investments in real-estate development projects, according to a Securities and Exchange Commission complaint filed in federal court. Good defrauded investors — including retirees — out of at least $4.8 million, resulting in more than $2 million of losses, the regulator said.

A spokesperson for Morgan Stanley said the bank is reviewing the matter and that the alleged conduct is “plainly unacceptable.” Good is no longer employed by the bank. A representative for Good did not immediately respond to a request for comment.

Good’s Ponzi scheme went on for about a decade, according to the regulator. He used clients’ money to pay bills, reimburse other investors and to transfer cash on Venmo for transactions with subject lines such as “because you’re sexy” and “Hotel for Destiny.”

Good told clients that the bets he was making on their behalf were low-risk and would pay returns between 6% and 10% over three to six months, but he never provided a written agreement, according to the SEC.

Latest News

Northern Trust names new West Region president for wealth
Northern Trust names new West Region president for wealth

The new regional leader brings nearly 25 years of experience as the firm seeks to tap a complex and evolving market.

Capital Group extends retirement plan services further with a focus on advisors
Capital Group extends retirement plan services further with a focus on advisors

The latest updates to its recordkeeping platform, including a solution originally developed for one large 20,000-advisor client, take aim at the small to medium-sized business space.

Why RIAs are the next growth frontier for annuities
Why RIAs are the next growth frontier for annuities

David Lau, founder and CEO of DPL Financial Partners, explains how the RIA boom and product innovation has fueled a slow-burn growth story in annuities.

Supreme Court slaps down challenge to IRS summons for Coinbase user data
Supreme Court slaps down challenge to IRS summons for Coinbase user data

Crypto investor argues the federal agency's probe, upheld by a federal appeals court, would "strip millions of Americans of meaningful privacy protections."

Houston-based RIA Americana Partners adds $1B+ with former Morgan Stanley director
Houston-based RIA Americana Partners adds $1B+ with former Morgan Stanley director

Meanwhile in Chicago, the wirehouse also lost another $454 million team as a group of defectors moved to Wells Fargo.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.