Former Morgan Stanley broker Mark Mensack filed a lawsuit against Morgan Stanley and the Financial Industry Regulatory Authority (FINRA) in New Jersey federal district court last Friday, accusing the firm of several improprieties including perjury and destruction of evidence. The claims resulted from an adverse FINRA arbitration ruling in which Mensack, who tried to blow the whistle on alleged unethical sales practices at Morgan Stanley, was later ordered to pay $1.2 million in a bonus contract dispute following his leaving the firm.
The 31-page complaint, listed numerous accusations against Morgan Stanley and FINRA, including ethical violations and lack of impartiality. A FINRA spokesperson refused to comment and Morgan Stanley called the claims “baseless.”
The full Feb. 25, 2013 Reuters article may be found here.