FINRA Boots Ex-Morgan Stanley Broker Accused of Fraudulent Fund Transfers
The former broker allegedly induced clients to transfer money for investments he never made.
The Financial Industry Regulatory Authority barred a former Morgan Stanley broker after he refused to cooperate with the regulator’s investigation into allegations he fraudulently induced clients to transfer funds for investments that he never made for them.
Without admitting or denying FINRA’s claims, Ron Ernest Filoramo signed a FINRA letter of acceptance, waiver and consent in late August, consented to be barred from associating with any FINRA member in any capacity. A FINRA lawyer signed the letter Monday.
“Morgan Stanley is strongly committed to the protection of client assets, and to act quickly when allegations of this nature are discovered,” a spokesperson for the wirehouse told ThinkAdvisor on Tuesday. “Mr. Filoramo’s employment was terminated in May and we reported the matter to law enforcement. There are a limited number of clients impacted and we are working with them to address their claims.”
In April 2011, Filoramo became registered as a general securities representative with Morgan Stanley.
On May 31, 2023, Morgan Stanley filed a Form U5 disclosing the firm discharged him “following allegations he fraudulently induced clients to transfer funds to purported investments that were never made.”
According to his report on BrokerCheck, clients in four separate disputes sought combined damages that totaled about $860,000.
Filoramo then failed to provide FINRA with documents and information the regulator requested in May and June as part of its investigation into the allegations by clients and Morgan Stanley. Not cooperating with a FINRA investigation is a surefire way for a broker to be barred.
Through his actions, Filoramo violated FJNRA Rules 8210 and 2010, according to FINRA.
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