INVESTIGATION of RON WILLOUGHBY – Tempe, AZ
Ron Willoughby, formerly of Morgan Stanley, Suspended Three Months from Securities Industry
Have you lost money with financial advisor Ron Willoughby of Tempe, Arizona? We are investigating allegations made by FINRA, the Financial Industry Regulatory Authority, against Ron Roy Willoughby, Jr. FINRA suspended Willoughby from the securities industry for three months and fined him $5,000 after he was alleged to have engaged in short-term trading of Unit Investment Trusts (or UITs) in customer accounts.
UITs are not designed for short-term trading because of their commissions and costs of trading. Between July 2012 and December 2014, Ron Willoughby recommended on several occasions that his customers sell their UITs and then purchase new, different UITs. FINRA alleged this to be unsuitable in view of the frequency and costs of trading, which can be as high as 3.95%.
Ron Willoughby was a financial advisor and registered representative of Morgan Stanley from 2005 to December 2016. Willoughby was also affiliated with LPL Financial from December 2016 to March 2018 and with Kestra Financial from March 2018 to the present. He worked at branch offices in Tempe, Arizona. Willoughby has been the subject of at least three customer complaints.
Brokerage firms like Morgan Stanley have a responsibility to adequately supervise all representatives who are registered through their firm. Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies. When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.
Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado; Ann Arbor, Michigan; and Seattle, Washington. We represent investors in FINRA arbitration in all 50 states, including Tempe, Arizona and the Phoenix area. Attorney Aaron Israels is licensed to practice law in Arizona.
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If you lost money with Ron Willoughby or Morgan Stanley, please CONTACT US at 720-599-3505 for a free evaluation of your case.