• August 15, 2018
• Morgan Stanley
• Broker Discipline
• Sanction
• UIT
• Unit Investment Trusts

The Wolper Law Firm, P.A. is currently investigating claims against Lloyd Layton, a former Financial Advisor at Morgan Stanley in Washington D.C.  Lloyd Layton previously worked at Morgan Stanley until 2015 and has been in the securities industry since the 1980s.

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on August 13, 2018, FINRA sanctioned Lloyd Layton based on his conduct while employed at Morgan Stanley.  As part of the findings made by FINRA, Lloyd Layton “engaged in an unsuitable pattern of short-term trading of UITs in 54 customer accounts.”  It was determined that “the majority of the UITs that Llayton recommended had maturity dates of at least 24 months and carried sales charges ranging from 1.95% to 3.95%….but that Llayton repeatedly recommended that his customers sell their UIT positions less than a year after purchase.”  Lloyd Layton has been suspended for a period of three months and fined for his misconduct.

To review the full terms of the sanction, click http://www.finra.org/sites/default/files/fda_documents/2017055691701%20Lloyd%20Thomas%20Layton%20CRD%201618414%20AWC%20va%20.pdf.

Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives.  Trading long-term investment vehicles in short duration is per se improper as it presents very little benefit to the customer and only benefits the Financial Advisor, who earns commissions.  Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients.  To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

If you or someone you know was a customer of Lloyd Layton and you experienced investment losses, please contact the Wolper Law Firm, P.A. at 800.931.8452 or by email at mwolper@wolperlawfirm.com to discuss your specific situation and the legal options available.  The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration.

Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities.  Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters.