ROBERT ALAN FRANCHINI

ROBERT ALAN FRANCHINI is currently employed as a Broker and/or Investment Adviser at MORGAN STANLEY located at ONE FAWCETT PLACE, GREENWICH, CT, 06830.

ROBERT ALAN FRANCHINI has worked at MORGAN STANLEY since June 01, 2009

Disclosure History

ROBERT ALAN FRANCHINI has 1 Disclosure Event(s).

Date: October 20, 2009
Category: Customer Dispute
Allegations: CLAIMANT ALLEGES, INTER ALIA, THAT FROM 2008 THROUGH FEBRUARY OF 2009 THE FINANCIAL ADVISOR NEGLIGENTLY MISMANAGED HER ACCOUNTS WHEN HE MADE UNSUITABLE INVESTMENTS IN PREFERRED STOCK OF FINANCIAL SERVICES COMPANIES.
Damage Amount Requested: $407,161.50
Settlement Amount: $192,500.00
Broker Comment: FA STATES THAT HE AND THE CLIENT HAD MULTIPLE MEETINGS AND CONVERSATIONS ABOUT THE OVERALL STATE OF THE MARKET AND RISK IN GENERAL DURING THE 2008 MARKET DOWNTURN. THE FA SUGGESTED PARING BACK THE CLIENT'S RISK IN AUGUST OF 2008 WHICH WAS ACCOMPLISHED THROUGH THE SELLING OF COMMON STOCKS AND THE PURCHASING OF PREFERRED STOCKS WITH THOSE DOLLARS. THIS HAD THE DUAL PURPOSE OF PROVIDING MORE INCOME TO THE CLIENT AS WELL AS INCREASED SAFETY OVER COMMON STOCKS BY MOVING UP IN THE CAPITAL STRUCTURE. THE CLIENT, AGAINST THE DIRECTION OF HE FA, SOLD ALL OF HER POSITIONS IN FEBRUARY OF 2009 AND SUSTAINED INVESTMENT LOSSES AS A RESULT. THE FA STATES THAT NONE OF THE PREFERREDS THAT WERE PURCHASED LATE IN 2008 CEASED PAYING DIVIDENDS AND ALL ARE NOW TRADING AROUND OR ABOVE PAR VALUE. IN ORDER TO AVOID THE COSTS ASSOCIATED WITH CONTINUED LITIGATION, CGMI DECIDED TO SETTLE THE CLAIM IN NOVEMBER 2010 AND THE FA DID NOT PAY ANYTHING TOWARDS THIS SETTLEMENT.

More Information

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