Former Morgan Stanley broker files whistleblower suit

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.