Morgan Stanley faces legal action over NC adviser’s alleged Ponzi scheme

CHARLOTTE — First comes the SEC — then come the New York lawyers.

Weeks after former Morgan Stanley adviser Shawn Good was accused by federal regulators of running a $4.8 million Ponzi scheme in North Carolina, multiple law firms have made calls to his former clients, eyeing dollar signs. And at least one of them has filed an arbitration complaint on behalf of an alleged victim.

ALSO READ: SEC accuses Charlotte man of operating $7 million Ponzi scheme, defrauding more than 75 investors

But the complaint — unlike the one filed in federal court by the U.S. Securities and Exchange Commission — targets Morgan Stanley, not Good. Attorneys say the New York-based financial giant — despite the fact that it did terminate Good this year and looped in the SEC — bears some culpability in what happened.

A spokeswoman for Morgan Stanley declined to comment for this story.

Multiple law firms are “investigating,” looking for former Good clients to represent in arbitration cases against Morgan Stanley.

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