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Morgan Stanley Fires Broker With History of Abuse Claims

Asked for a response, Mr. Greenberg wrote in an email, “The allegations previously reported in the N.Y. Times are the result of a personal estrangement and vendettas. Everyone deserves to be treated with respect. I have always tried to do that in my personal and professional relationships.

“Morgan Stanley reviewed these allegations years ago,” he added. “I am proud of my record as I know that I have always served our clients with integrity.”

Four women obtained restraining orders against Mr. Greenberg over a period of 15 years. He was arrested for violating two of the orders. The women claimed in court papers that Mr. Greenberg had physically assaulted them and, in one case, threatened murder.

Managers at the bank knew of at least one of the arrests. A lawyer for one of Mr. Greenberg’s ex-wives said she had told a Morgan Stanley lawyer about Mr. Greenberg’s history of alleged abuse. Mr. Greenberg’s manager raised concerns about his conduct with superiors. And a federal subpoena stemming from an investigation into Mr. Greenberg was served at his office.

Mr. Greenberg was one of the top earners in the bank’s wealth management division. He was part of the firm’s elite Chairman’s Club, which celebrates top financial advisers. He made Forbes’s 2018 list of Oregon’s top wealth management producers. After the publication of the Times article last Wednesday, his name was removed from the list.

Money managers such as Mr. Greenberg are overseen by the Financial Industry Regulatory Authority, or Finra, a self-regulatory group that isn’t a government agency. One of Finra’s goals is to help investors select trustworthy financial advisers. But the organization doesn’t require brokers to disclose all run-ins with law enforcement. Mr. Greenberg’s arrests and the restraining orders against him were not reported to Finra or to investors.

Michelle Davis, the bank’s global head of corporate affairs, said the bank’s review into the matter was continuing. She declined to say whether other employees are under scrutiny.

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News credit : Nytimes