Former Morgan Stanley advisor gets 7 years for ripping off clients

Former Morgan Stanley advisor gets 7 years for ripping off clients
Shawn Edward Good pleaded guilty to stealing $7.2 million from retirees and used the money to pay off earlier investors and to fund a lavish lifestyle.
MAY 25, 2023
By 

A former Morgan Stanley financial advisor was sentenced to more than seven years behind bars for ripping off retirees and other clients in a decade-long Ponzi scheme.

Shawn Edward Good took in $7.2 million from at least 13 victims, according to federal prosecutors in Raleigh, North Carolina. Instead of investing the money in real estate projects and tax-free municipal bonds, he used it to pay off earlier investors and to fund a lavish lifestyle, they said, calling him a “financial predator.”

Good’s fraud lasted from 2012 to 2022 and cost his clients more than $3 million, prosecutors said in a court filing. He was sentenced Wednesday to seven years and three months in prison by U.S. District Judge James C. Dever III, according to a statement from Michael Easley, U.S. attorney for eastern North Carolina. He was also ordered to pay $3.6 million in restitution to victims.

“Shawn Good robbed the savings and retirements of clients who trusted him — including a widow, a single mom, and a retired police officer,” Easley said in the statement.

Good pleaded guilty in September 2022 to wire fraud and money laundering.

Good’s lawyer, Joe Zeszotarski, didn’t immediately respond to a voicemail and email seeking comment on the sentencing.

“This individual has not worked at Morgan Stanley since February 2022,” a spokesperson for the bank said in a statement. “The conduct he was convicted of, which affected a small number of clients, is plainly unacceptable. We cooperated fully with law enforcement and other authorities, and appreciate that the criminal prosecution has been successfully concluded.”

Good used client money for high-end restaurants, a home and vacation condo and trips to Europe and Disney World, according to the government. He also paid for cars, including a Lexus RX350, a Porsche Boxster, a Tesla Model 3 and an Alfa Romeo Stelvio.

Between September 2017 and August 2019, he transferred $136,000 in investor funds to “a female acquaintance,” according to prosecutors. His Venmo account showed $110,000 in payments with memo lines that included “tattoo,” “because your sexy,” “Hotel for Destiny,” “Nailz” and “shopping.”

Good told clients he was putting their money into low-risk investments that would return as much as 10% in three- or six-month terms. He persuaded some to take out lines of credit secured by their Morgan Stanley investment and retirement accounts, according to the government.

The case is U.S. v. Good, US District Court, Eastern District of North Carolina (Raleigh).

What will drive gold prices higher in the second half of 2023?

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

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.