Morgan Stanley Whistleblower
by Richard
Three cheers for former Morgan Stanley broker Dana de Windt.
As reported in the Wall Street Journal (5/24/08, page B1), de Windt waged a four year battle against the mighty firm, not from the sidelines, but from the belly of the beast, while employed as a top producing broker at Morgan Stanley.
The focus was on bond marketing and excessive markups ( so commonplace in securities firms as to be unremarkable) and on one very nasty issue, that wiped out over 90% of value as it lost its investment grade rating.
This time it was personal. His own father owned $65,000 of these toxic bonds.
Two lessons to be learned from this episode:
1. Not every broker is a slime-ball
It just seems that way.
The big money comes so fast and so easy once you’ve built a book of clients, that moral lassitude takes hold and your ethics go into a blind trust.
Wall Street is a rules-based culture, rather than a values-based culture. The paperwork is overwhelming, as brokers and their firms work to diligently build in their defenses by burying investors with prospectuses, disclosures, and mandatory arbitration clauses.
There may have once been some tenuous relationship between the regulatory overkill and concern for the client, but that has been lost in the mists of time, ground to dust as the lawyers searched for the safety of numbing boilerplate and document dumping.
Brokers learn to get along to go along. It’s not a question of right or wrong. It’s one more item on the to do list. “Run this past legal, and then you’re good to go…”
There are horror stories of individual bonds being marked up a half dozen times as they ricochet among broker dealers before being dumped on the ignorant retail client. With zero disclosure.
All according to the regs. All perfectly legal. It’s the rules…stupid.
To have a successful insider challenge this ethos is like finding a politician who refunds unneeded campaign contributions. It’s theoretically possible…but just barely.
2. Virtually all broker-sold debt is of dubious quality
The rating agencies are either hopelessly corrupt or appallingly inept. Supposed watchdogs like the SEC and FINRA are like all regulatory agencies, captive to and firmly in the orbit of the industry they supposedly regulate.
And the nexus of hedge funds, leveraged buyout shops, and derivatives manufacturers have conspired to transform debt from the supposedly conservative portion of a portfolio to the riskiest.
Ask any of the corporate treasurers who were left holding the bag when auction rate securities liquidity vanished this past year. Not only are bonds no longer real bonds…cash equivalents are no longer equivalent to cash.
Look up any big name broker website, and go to their section on asset allocation. They will describe fixed income as the anchor that keeps your portfolio from going askew during turbulent markets.
This was doctrine during the Jurassic era of portfolio management. Well run companies earned their AAA rating, and debt was safer than equity.
That was then. This is now.
The dominant theme in the hot money market is leverage…and leverage is enhanced by inventing new iterations of debt. Which accelerates the degradation of corporate debt.
And then the cycle goes into hyperdrive.
In the idiom of the street…never steal in slow motion.
You are safe only by contracting U.S. treasury debt or insured CDs. Anything else is at best an aspiration, and should not be dignified with the heading of “fixed income”.
Far from investing my money with these thieves, I wouldn’t trust them to change the oil in my car.
(footnote: Morgan Stanley paid $6.1 million in fines and restitution….on $59 million of bonds in question. Not to worry. It’s just a cost of doing business.)
June 18th, 2008 at 1:16 pm
richard….
i appreciate your acknowledgement of the ongoing conflict with Morgan Stanley, and I can assure you that i am continuing to pursue aggressively the aspects which appeared in the WSJ story written by Randall Smith.
i expect to prevail in my goal of rescission for all of the 2807 infractions noted on the FINRA examination, which i was responsible for after walking out of mediation in feb. 05. though it has taken an unusually lengthy period of time thus far, i do see that “kicking in the darkness to bleed daylight”, with patience, can benefit the group. the next 30 days should prove to be interesting….
kindest regards….dana
June 19th, 2008 at 8:19 am
dana…
glad you caught our post. It’s not often we see such a “man bites dog” story. I know our readers will want to hear from you as to how this finally plays out.
Hang in there, pal!
Best Regards,
Richard
June 20th, 2008 at 4:34 pm
hey richard….
i have taken additional steps today to move this forward, snd i believe that the direction is correct and the party conducting this next phase of the objective exanination is going to be able to readily gather the needed information to draw the right conclusion. i am asking for a review period of not longer than the next 30 days. this is a tough but relatively fair fight and i like the chances of the investors to receive encouraging news soon.
thanks again for your kind remarks in your story….
dana
July 10th, 2008 at 7:30 am
Mortgage Calculator Currency Conversion Financing…
I didn’t agree with you first, but last paragraph makes sense for me…
July 15th, 2008 at 4:45 pm
it has now surfaced that morgan stanley on jan 16, 2007 offered investors in the state of tennessee full rescission on their kemper lumbermen’s surplus notes along with a 10% penalty per year. this material became known thanks to the WSJ article dated may 24, 2008. currently the state of florida, FINRA, who apparently had no knowledge of this transaction prior to a few weeks ago, and the SEC are reviewing the details of this interesting revelation. you might ask yourself, why would morgan stanley offer a rescission deal prior to the consent agreement of aug. 2, 2007 when that agreement passed on rescission and only returned to investors the excess pricing of the notes? i believe the regulators are going to expedite their review and information ought to be forthcoming in the near term. good luck to all parties involved….dana de windt
August 24th, 2008 at 6:09 am
i believe that signs of the dispute ending are fairly quickly coming to their conclusion. based on input received this week to be confirmed over the next two weeks, the indications of relief to investors is coming into focus by the regulatory personell that has the abi;ity to cause resolution. i expect that everyone’s belief and patience to endure this lengthy process will find that this system works and those responsible remain serious about addressing tough issues thoroughly.
again, remain optimistic and hold steady for another two weeks…dana de windt
August 31st, 2008 at 5:28 pm
the state of florida and confirmed by morgan stanley is in a pending settlement offering florida investors who bought lumbermen’s during the period mentioned in the finra consent agreement dated 8/2/07, full rescission on their purchase plus a substantial annual penalty for a period of 7 to 8 years. until i get confirmation in writing, i am reluctant to mention that percentage. my stance from here is to discuss the specifics with the regulators to evaluate the breadth of the resolution which i believe should be broader than what i know currently. i suspect another two weeks will aid me in the information i need to know. this is the beginning of good news for a lot of people. i will continue to advise when news becomes available….dana
October 9th, 2008 at 7:29 pm
today i can announce that 738 investors in the state of florida who purchased kemper lumbermen’s surplus notes from morgan stanley between jan 01 through about june 22, 01 are receiving rescission from the firm plus a 7% statutory interest penalty a year. florida was able to prevail by using language found in FS 517.061(17). investors will be receiving their paperwork over the next few days. the principal amount of the notes being returned approximates $13mm dollars. i believe other states are receiving some rescission as well but not approaching the 2807 pricing infractions as discovered by their regulators FINRA on aug 2, 2007. i will be informing all jurisdictional heads of nasaa next week so if they were not aware of this settlement, they soon would be. still a few additional challenges to pursue before i remove myself from this action and i will write once more with the final resolution….
November 12th, 2008 at 10:10 am
Dana, I have some questions for you regarding this case. One of my clients owned this bond and took MS to arbitration and lost. 2 years later MS is coming after them in a lawsuit. Please help. These people are good people and no doubt are being bullied. Thank you. Mike
December 17th, 2008 at 8:29 pm
rescission offers are being sent to florida investors now. i went to DC last week to meet with the general counsel of the NASAA to discuss what other states would be pursuing pre june 01 and after june 01 ( read the consent agreement on FINRA.org dated aug 2, 2007. i am also waiting on a final decision by regulator bradley skolnik opposed by morgan stanley retained lawyer daniel j toal as to my ability to search the pre 9/11 e-mail files of morgan stanley for information which can assist other investors. mike…tell the lawyers from morgan stanley to back off immediately…they are way out of order and have already been penalized by rescission and it should be spreading among other states. let me know what the current status is and if i can help….
December 22nd, 2008 at 12:35 pm
for those of you interested in the cause of the infractions in the KLSN dispute…read the consent order from missouri ap-08-12 and you will understand the gravity of this situation
February 6th, 2009 at 8:25 pm
It is great reading about anyone who tells the truth about morgan stanley. We had everything we had invested in their house mutual funds and saw it go to nothing. Almost everything was in the funds involved in the sales contests. No attorney wanted to help us because they said it would cost more than the $400,000 we lost to get it back. If we had the assets we had before we lost everything I would have done anything to make sure we had a chance to sueing for what we lost in addition to punishing them for taking advantage of us. It is very sad that you can be taken advantage like this and you don’t matter….
February 8th, 2009 at 5:52 am
during this past week millions of dollars were being released to fla investors who purchased these notes prior to june 22 2001…with the statutory interest penaly and rescission, one investor who i have not met let me know that his $100,000 purchase has returned to him $132,000+. i am sitting in DC today awaiting my meeting with the SEC on tues morn at 10:30 in their offices near union station. the two attorneys attending are senior and very capable. if i am not able to prevail here, i have securred dates in june in dispute resolution to use the “under oath” arbitration forum to attempt to get everyone back full rescission. morgan stanley is doing their best to win a motion to dismiss but i believe their efforts here will fall short. the only way to do this is to handle this pursuit myself without legal counsel. it remains cost effective and frankly, and modestly, no one knows and understands all of the facets of the case better than i. therefore all of the discussions with regulators have been on point and are getting results. because these actions are being undertaken quietly, really no one knows in florida why they are receiving out of the blue morgan stanley’s offer to recind the transaction. for me, it’s satisfying to know that this has taken place, and i feel that additional success is within reach. so for those 738 recinded transaction investors or airs of same, remember the addage “pay it forward” and do something nice for the next person.
March 17th, 2009 at 2:01 am
morgan stanley has tried without success to quash the arbitration scheduled for june 22,23,24 in the FINRA office in boca raton. finally after years of trying, carberry and morgan stnley will have to testify under oath for the issues involving the kemper lumbermens surplus notes. the SEC is aware of the entire matter after i went to DC to explain to the bureau chief of the division of enforcement the sordid details of the inexcusable behavior by my former firm. although FINRA will not allow me to fend for all the investors, the testimony may stimulate the SEC to weigh in and assume the role of investor protection that they profess. let’s see what goes after the hearing…
April 8th, 2009 at 11:27 am
it has become clear that when the NASD honored my request to investigate the lumbermens surplus notes in about march of 2005, that the examination must have led to the uncovering of the blue sky violations found in late may of 2005. this has produced millions of dollars of rescission being paid back to investors all over the U.S. if you want to read what the document says just search…. nasaa rescission and morgan stanley… and many of the states have their consent orders posted. my panel in FINRA arbitration has ruled that i am not able to represent the remaining investors in the hearing, only the single individual being my father. however, if i should choose to continue, the evidence might well assist other regulators in assisting those investors…there has been a great deal of success thus far although the full scope is known only to morgan stanley. i hope that everyone has benefited from following this story along and i wish you all well in your recovery efforts.
April 30th, 2009 at 6:43 pm
today i want to let any of those that have followed this during the past 75 months that morgan stanley and i have reached a satisfactory agreement which will officially conclude and settle the issues which have been in dispute. i want to applaud morgan stanley’s sincerity and cooperation in the past several months that have led quietly and without excess fanfare to the cessation of the spirited dispute. it is with note that all valued agencies made themselves available during the process and i and many other people wish to express our appreciation for the time and energy spent by these regulatory groups. they know how i feel and that’s whats important. thank you for writing the article from which i have offered these sporatic comments and realize that what could be done in my estimation was done.
February 24th, 2010 at 8:05 am
i have been unable through any agency charged with oversight to verify that the blue sly laws violated over a 7 year period from 1998-2005 as outined in the consent agreement between the NASAA and morgan stanley, were complied with by morgan stanley. the SEC, NASAA, FINRA nor the men i worked with in the state of florida are willing to represent if morgan stanley actually complied with the full body of the agreement. if you search NASAA recission and morgan stanley, you can read the document for yourself. my conclusion is that financial regulation, when it comes to a size of this magnitude is unwilling to process complance for the benefit of the investors. you must ask yourself, why won’t the wall street journal publish the results of the efforts put forth as described in their may 08 article about me as the morgan stanley crusader. how about some help from an interested national financial publication?
April 15th, 2010 at 4:56 am
how about it randall…? follow up the article you wrote with the truth of what was really uncovered by finra and the nasaa…i know it’s the proper thing to do….dana
April 17th, 2011 at 5:24 pm
The most exciting phrase to hear in science, the one that heralds the most discoveries, is not Eureka! (I found it!) but ‘That’s funny…?
May 6th, 2011 at 8:38 pm
finally, the lynch pin in documented reporting by the state of florida to the office of financial regulation fiscal year 2008-09 dated june 30, 2009…here’s the quote under significant events…”morgan stanley and co.,inc paid voluntary restitution in june in the amount of $8.4 million to florida investors for the sale of unregistered securities of kemper lumbermens surplus notes”
there you have it ladies and gentlemen…by virtue of breaking the blue sky laws for about 10 years through 2005, morgan stanley has been officially outed in their illegal practice of selling these unregistered notes. legal counsel is again reviewing for a possible action which would presumably encompass all states as the violations would certainly be uniform in all of those states. patience and detective work will prevail yet. keep the faith…i hope i have the right legal team in motion…too bad morgan stanley, you finally got found out in documented form through the state of florida
June 17th, 2011 at 4:12 pm
once again, i am reviewing with 2 separate significant counsels the prospects for further recovery in the KLSN debacle. MS can not expect pretection from the deploable shielding of the truth beginning back in 2001 with the overpricing of the unregistered securities of KLSN. really an outrageous behavior of a corporation completely disinterested in their fiduciary responsibilities to their employees, investor clients and shareholders. the remedy is clear ( rescission ) and their actions cannot be defended by keeping their infractions away from the public. let’s see where this goes from here. still working and steadfast….
July 24th, 2011 at 4:50 am
First rate read.
August 28th, 2011 at 3:00 pm
the director of finra compliance for florida mitch atkins suggested that i call the whistleblower line and discuss these issues once again. i told the responder that it would be their responsibility to insure that all investors referred to in the consent order from the nasaa be accorded rescission as morgan stanley agreed to. knowing that they haven’t, it’s necessary to finish the compliance action and do their job. ironically, the nasaa is having their annual conference in wichita kansas on sept 11-13 this year celebrating their devotion to investor protection by celebrating the 100th year anniversary of the first blue sky law. unusual irony seeing that they never compelled morgan stanley to actually comply with the agreement that cost morgan stanley $8,500,000 in fines to the states. so far finra, the nasaa and my state of florida have looked the other way in compelling the compliance. i have to add the SEC as well and my meeting with michael fuchs and natasha vij as they have provided absolutely no investigation into this non compliance. because the WSJ and randall smith are standing down and not informing the public, it’s probably time to seek an alternate publication concept. i plan to do that after giving the finra whistleblower department enough time to react. that time ends on sept 11. though i always have intended to let the regulators complete this on their own terms, i believe that window of opportunity has basically closed. my legal guidance tells me that the rescission opportunities are not time bared.
December 4th, 2011 at 3:56 pm
it’s appropriate to let you know that an action will be filed in arbitration this coming week, multi state, florida and california. you will note if anyone is doing their research that the attorney representing the clients has a unique backgroud in this area. the state of florida has been engaged, along with a significant member of congress and an outstanding journalist with broad skills in the compliance area as well as being a former broker within the industry. no need for names. if this goes as it should, regulation will right this problem and investors will finally receive the rescissions that they are entitled to receive. i believe that the significant factors for success are in position, and i hope this works out in favor of the investors.
January 12th, 2012 at 4:09 pm
well….this month of january represents the ninth anniversary of when i began as the morgan stanley crusader, pinned on me by the article in the wall street journal of 5/24/08.
all that i mentioned above is in place and i will be traveling to tallahasse next week to presumably meet with the regulatory men who are responsible for the investors at issue. it’s been two month since u s congressman tom rooney interceeded on my and the investors behalf and, of course, he is to be highly commended for his participation. i met with tom yesterday briefly. make no mistake, this is a heavy weight contest between me vs morgan stanley and unfortunately to this point all of the regulators. we all remember that truth wins out if you can stand the course of action by your opponent for the full duration of the event. too bad for them…they have been given numerous opportunites to make this right over many years but because of the language in the consent order, they are oh so vulnerable. i suppose that there is no one in the country reading this blog at this time. however, i predict that will change when the verdict is rendered. this will be a story worth knowing because it has been an unbelievable story to go through for these past 9 years. this will be a very expensive business mistake of morgan stanley’s and all those there who participated and covered up the truth known to them for the entire time.
January 24th, 2012 at 6:31 pm
Well Dana,
I read it and my admiration for you
has increased substantially. I just thought you were an outstanding golfer, but obviously you are even more competitive than on the golf
course.
It has been a long fight, but I believe you are more than tough enough to continue it to a successful conclusion.
January 30th, 2012 at 9:59 pm
I am a former broker with the named firm who has several clients who lost money in the same bonds in pennsylvania. How can I get them restitution?
Is there anyone I can call?
February 24th, 2012 at 1:33 am
daniel…iminently after 9 years, a civil suit is going to be filed by a major firm. i would suggest that you follow along as the expected orientation would be starting with florida, then moving the same senario through the other states. at this time, please call the office of buckinghan doolittle in boca and give this information to attorney rose schindler..this is material and the more investors they have knowledge of the broader the action. let me know on this site that you have completed this task please. good luck….dana
March 21st, 2012 at 5:55 am
i must say that there seems to be another delay in the filing of the suit. morgan stanley will not be able to defend their actions relative to the blue sky law violations to their brokers or investors. the shame of it is once again their regulators and our SEC have allowed this charade to continue. once caught, no one is taking responsibility for their own deficient behavior. i have identified a lead plaintiff for their action who lost $100,000 but the parties have not yet agreed to move forward. i expect to speak with legal counsel today to push for the finish line.
June 12th, 2012 at 4:09 am
the class action firm has opted non pursuit. my my…however the dates for the arbitration in fl and ca have been set for dec. 2012 and as you might expect, i will be testifying for those plaintiffs. that same attorney representing them and her firm are evaluating filing a whistleblower action on my behalf against morgan stanley. i expect that decision will be made this week. the depth of this problem and deceit has been staggering.if the whistleblower suit is not filed, i plan to write a letter to the editor of the WSJ to conclude my remarks and position. i assume they will have the sense to publish it. regardless, the arbitration will go on in dec and testimony will be under oath. let’s see where this goes…..
June 20th, 2012 at 2:14 pm
Dana, the WSJ didn’t have the sense or the drive to discover and publish the truth in the beginning. I doubt anything there has changed.
“Hi-yo Silver”!
June 30th, 2012 at 1:42 pm
well here we are…i have found a major legal firm ready to affect an action and they will be identifying a former investor regardless of state, who purchased kemper lumbermens surplus notes back in 2001-02 to be the lead plaintiff. i have put out this request to several brokers i know, and for those that i don’t, if you have an investor that fits this profile or are an investor, send me the contact information to my e-mail address this coming week…settle22@msn.com the action will commence shortly collaterally with the action moving to arbitration in december. let me hear from you if you have some positive information or comment….here we go….dana
August 22nd, 2012 at 11:03 am
todays date is aug 22 2012 and i am now awaiting the filing of a 5 state action against morgan stanley sometime between now and probably mid september. the legal firm is strong and capable of handling this action in favor of the investors. i believe that the initial action will be specific to kemper lumbermens surplus notes, then as the violation infractions of blue sky law registrations are noted by the press and public, i would expect the actions will encompass the many other sales of unregistered securities during the period of 1995-2005. the legal counsel and i have met and exchanged constructively in our conversation and finally, i can say without hesitation, that out of the many discussions i have had with firms, this is the man who has the background and the intelligence to properly address the action forthcoming. though i will not name the firm here, once all is filed you may find that the talented journalist from the NY Times will be taking the time to allow the details to emerge. i wish everyone the best of luck in resolving this challenging by clear dispute.
September 3rd, 2012 at 8:08 am
i thought that prior to an expected filing of the action shortly that i would leave you will the one last notification of huge exposure that morgan stanley has above and beyond the kemper lumbermens surplus notes. i have seen, as sent to me by pamela epting, the director of securities in the state of florida, the addendum which lists the sales of unregistered securities to florida investors. there is approx. 40 on a page, fully redacted, and 135 pages, ammounting to over 5000 purchasers. the serious issue for morgan stanley here isn’t the offer to recind, as probably many of the securites are trading at reasonable market prices even though they were sold as unregistered securities. the problem with these recissions is the interest penalty element associated with each purchase some of them as early as 1995. the penalty per year in tenn is 10% and florida 7% to mention two that i am familiar with. so if fl has 5000+ investors, it’s not hard to extrapolate that throughout the US,there are more than say 100,000. if the average purchase was $25,000 you need a calculator to judge that number times the interest penalty for a period of as long as 10-15 years. when a firm deliberaely hides the truth and i followed their own mandated protocal of being required to report unethical business practices to the firm, i can hardly be criticized for having the willingness not to give up because they and their regulatory relationships placed a few barriers in the way. so once again i am hopeful that the action will be filed in september and that those who have been vocal about their lack of confidence in the financial services industry fairness, will be relieved to find that this fight, of just short of 10 years offically for me, will try to support the notion that the investor rights protections are indeed first and foremost.
September 19th, 2012 at 3:20 pm
well, it seems as though the legal firm is assembling the plaintiffs in as many as five states for the action to commence. it would appear that the states that made this first cut include pa, the site of the first rescissions dating back to jan 2007, tenn….the state where my information origionated after the WSJ article in may 2008, ohio…..and of course the state where supposedly over 400 rescissions have taken place, but no one is willing to verify, the sunshine state of florida….the 5th state is still a mystery to me…i am confident that sometime before halloween, the action will be filed….the exposure for smith barney morgan stanley is seriously huge…this is what happens when you don’t tell the truth and believe you can get away without being found out. this is now out of my hands and will be in the control of a superior firm with literally all facts already in evidence.
November 3rd, 2012 at 11:19 am
on thursday nov 8, i will be meeting with the legal firm who will be handling this case and going over the complaint for content and clarity. this team is significant and i believe remains poised to file a multi state action probably based initially on lumbermens but undoubtedly will lead to the broader action of the decade of blue sky registration violations which entitle all those exposed to be properly offered full rescission along with the very punitive interest rate penalty which in 2008 in florida was 7%. an interest rate is charged for every year from the initial trade through rescission. remember some of these violations date back to 1995. they are obligated and this will reflect very poorly on the lack of legitimate oversight by various regulatory agencies. they would include FINRA the NASAA and the SEC along with the individual states who i informed back in 2008. very sad indeed for those involved and that would be everyone in upper management and the legal dept of morgan stanley from the mid 90’s through today. i look forward to the complaint being filed in november.
December 8th, 2012 at 9:30 am
well the arbitration with 2 plaintiff’s, one in fl and one in ca., commences tues dec 11th.
i believe the panel will approve me as an expert witness following questioning and i look forward to using the same honestly and candor which has gotten the process to this point. for all of those brokers who were ‘POSITIONED” to represent this so called bond to their clients and the heartache of watching the value disappear and not knowing how this could be happening, i am going to defend your loss of clients, reputations and confidence. i realize that everyone had to bear down, go back to work and accept things as they appeared but know this….you did not sell your customes and clients an investment grade bond….you might as well have taken their funds and rolled the dice with pork bellies…you sold them although you couldn’t see it on the confirms or statements,a surplus note which was unsecurred and subordinated to all present and futire liabilities of lumbermens and when you made the purchase, we had just pulled the trap door on many of our favorite clients and relatives. i will do my best….
January 17th, 2013 at 12:40 am
Magnificent website. Plenty of useful info here.
I’m sending it to several buddies ans additionally sharing in delicious. And of course, thanks for your sweat!
January 19th, 2013 at 5:25 pm
just a brief note to say that as the expert witness in a recent finra arbitration case in fla., the investor was awarded $40,000…i now know who the co counsels are and looking for a federal filing shortly…MS cannot surpress this truth any longer…stayed the course and i suspect a filing within a reasonable period of time
January 26th, 2013 at 2:43 am
complaint is being written and will be filed in a state other than florida..remember that no statute of limitations prevails because investors of these blue sky violations never received notice from the culprit morgan stanley nor the states that signed on as part of the $8,500,000 settlement. yes there will be co counsel and i am finally looking toward a conclusion which will certify the class and begin the process of recovering the rescission entitlement dollars for the investors. really can’t see it any other way…the expression i can suggest to all reading this blog is “this is it”
February 28th, 2013 at 8:09 am
nothing ever surprises me in this quest…the legal firm who said the filing would be iminent has decided to stand aside due to legal issues which by way of their explanation seem shallow and weak. it is astounding that literally no one can take the facts and assist the investors to recovery…therefore i have requested two states division of securities to reengage and resolve this matter as they are responsible for the investors welfare and care.
as soon as i hear their answer i will print my requests to them on this blog so you can see how i have approached them with honesty and support. the need for action from the states is obvious as they have the leverage to force morgan stanley to comply and verify that compliance. if they don’t, the states do have the authority to suspend licencing for MS in their state. they have the power, now will they use their clout to protect investors and do their mandated responsibility? shortly will come the answer…..
March 12th, 2013 at 9:07 am
i had a discussion with a very competent journalist from columbia university and she is reviewing the many details of the matter for her evaluation and thesis. also i expect to have a final review of the legal issues with an attorney who is familiar with the issues up to the final revelations exposed through the arbitration process. my expectation is that without the support of either or both of these individuals, the resources available for supporting the investors will diminish. i appreciate their involvement and hope for the best at this late stage of the cycle. if morgan stanley is ultimately able to never satisfy the NASAA templated consent order compelling them to offer fair rescission as required then the financial services compliance oversight will never be able to rebalance for equal justice. i have done my part and now it’s up to others to stand with me.
March 26th, 2013 at 1:16 am
with appreciation, i have contacted a valued investigative team to evaluate their interest in covering this story from here. with a seeming reluctance from the states division of securites to provise KLSN investor names to legal counsel, this team has an opportunity to focus on the matter and reveal the depth of the fraud and challenge for answers. my request is simple and the breadth of resolution for those disadvatanged significant. i am sure that if the team chooses to research the issue through this blog of now over 4 1/2 years, they will see that there has been a thorough effort to perform for others. let’s remember that others have referred to me as a whistleblower and the morgan stanley crusader. that’s fine but remain clear that i have no pecuniary interest in the recovery for investors. this is based on my compliance backgroud within the industry only.
April 3rd, 2013 at 7:29 am
a couple of days ago, i spent about an hour talking to the head of FINRA whistleblower office, joe ozag regarding their overall deficiency in compelling the compliance to their regulations to morgan stanley in the fraud and blue sky violations of kemper lumbermens surplus notes. he had a couple of other people on the call who said absolutely nothing during the call. his response to almost an hour dissertation was, well i guess we agree to disagree on FINRA not compelling the rescissions. a preposterous remark to say the least…i sent them this entire senario over a year and a quarter ago and never heard a word. honestly, his insincerity of even saying, well we’ll consider your position and get back to you next wed., simply shows that they have no open mind in resolving this escapade. they must think of me as an idiot with no valid position in this matter. well, i can assure you that i am not an idiot and i’ll move toward outing FINRA, the NASAA and morgan stanley through another avenue. the gall of regulation being this pompass and cavalier toward this wrong doing is stunning. the investors don’t stand a chance with the system as it is…on we go….
April 27th, 2013 at 7:43 am
awaiting the conclusions which are being evaluated by a major legal firm in WBP with a thorough understanding of the issues. if they choose to file an action, i assume notice of that will be known by the end of may. this perilous situation set up by MS and supported by regulation is dispicable and although some may feel that i am running out of options, maybe not. i assume MS is reading along with this blog periodically. gloat if you choose, but we’ll see who prevails in the end.
May 3rd, 2013 at 3:07 pm
placed a call to carmen jones assistant director division of securities in the state of tenn. and although they have my information since 3/13, she is not communicating to me whether the state is going to open officially this matter on the need to provide oversight on the rescissions that they agreed to with morgan stanley. just waiting on an answer.
also no word yet from searcy denny scarola on their appitite to file an action. that’s been 3 1/2 weeks since our meeting. no news is good news??? can’t say for sure. being relentless on this subject has been exhilerating and worth the entire 10 year+ effort. when justice does not prevail for reasons known only to those who could dispense it, grave disappointment in our system can’t help but be realized. i started this matter over 10years ago and have proven all of the violations yet as of this moment legal firms nor the regulators of the financial services business are working on the justice needed by the investors. so we’ll wait for the final answers and either move on or move off.
May 7th, 2013 at 8:21 am
this was my recent request to the state of florida’s division of securitties. no movement yet.
hi pam….
i’m sure you are reflecting on my request to authenticate MS’s
compliance with the order and are drawing your conclusions.
will you be able to have our division perform a sincere
review of the matter as i have explained to you and rob?
i believe you may be the last dependable operating entity
that the investors have to qualify the real and honest attempt
that MS is required to do under the order. i have worked
conscientiously for over 10 years and need the support and
leverage of your division to reign in the 8 year blue sky law
violations and the fraudulent sale of KLSN’s in thousands of transactions
around the US including hundreds in florida.
please step up on this as your investigation is paramount to the
welfare of those who depend on you.
please let me know…..
regards…dana
May 21st, 2013 at 8:34 pm
Last year they couldn’t buy what the pills provide at any price, and in that case, I’d
probably still be at DC ist, writing for free and enjoying it.
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