investment broker defrauding investor

Former Morgan Stanley and Wells Fargo Investment Advisor Pleads Guilty to Defrauding Customers of $7 Million

By: Reif Law Group, P.C.

Shawn Good (CRD#: 2022168), formerly with Morgan Stanley, pleaded guilty on September 15, 2022 to defrauding clients of more than $7 million following a Securities and Exchange Commission (SEC) investigation. Good reportedly pleaded guilty to wire fraud and money laundering and is facing up to 30 years in prison. 

Good was an investment advisor for Morgan Stanley Smith Barney, LLC in Wilmington, NC. Good allegedly operated a  decade-long, multimillion-dollar Ponzi scheme by soliciting investments for “low-risk” real estate projects and tax-free municipal bonds. 

Good allegedly caused some clients to obtain a liquid assets line of credit (LAL) secured by their Morgan Stanley investment accounts. Good allegedly directed clients to transfer the LAL funds to their bank accounts and then wire money directly to his personal bank account. Other clients reportedly paid by check and wire transfers using funds from sources other than Morgan Stanley accounts.

At least 12 victims invested approximately $7.24 million based on Good’s false statements and misrepresentations. Instead of investing in land development or bonds, Good used the money for personal expenses, including a Wilmington home, a Florida condominium, luxury vehicles, and vacations. To effectuate the Ponzi scheme, Good also used a portion of investor funds to make payments to earlier investors.

Morgan Stanley terminated Good earlier this year after he failed to cooperate with an internal review following customer accusations. In April 2022, FINRA barred Good from the securities industry after he refused to appear for on-the-record testimony. He also has customer complaints on his record:

  • In April 2022, a customer accused Good of misappropriating funds by soliciting an outside real estate investment opportunity from 2015 to 2018. The matter is pending.
  • In April 2022, Good allegedly misappropriated funds from clients’ LAL accounts between August 2019 to February 2022. The claimants are seeking $2,275,000.00 in damages.
  • In September 2011, while he was with Wells Fargo Investment Advisors, a client accused Good of misrepresentation regarding an annuity.

Our firm is investigating potential securities claims of former customers of Shawn Good and his former employer, Morgan Stanley Smith Barney, LLC.

How To Recover Your Losses

If you have suffered investment losses due to broker misconduct by Shawn Good and his employer Morgan Stanley, contact Reif Law Group. Because FINRA-member firms are responsible for supervising their investment advisors, Morgan Stanley may be liable for your losses.

We have an impressive track record of success in FINRA arbitration and securities litigation and will leverage our skills and resources to help recoup your losses. Time is of the essence. Contact our office today. 

Brandon S. Reif is the managing partner at Reif Law Group, P.C. and a distinguished trial attorney with a track record of delivering successful trial verdicts and arbitration awards. Mr. Reif is Martindale-Hubbell® AV Preeminent™ peer-rated, AV Preeminent™ – Judicial Edition-rated, and a Client Champion Platinum™ client-rated attorney. He has been voted one of Los Angeles Magazine’s “Top Attorneys in Southern California” from 2011 to 2021 and Southern California’s Super Lawyer® from 2011 to 2021 (elevated from Rising Stars® in 2015). Mr. Reif represents the securities and financial services industries in all types of lawsuits and arbitrations, including customer, vendor, sponsor, and insurer disputes. If you have a question about this article you can contact Mr. Reif by visiting his biography page here.