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Junk Bonds and Speculative Stocks Sold by Morgan Stanley

Carlson & Associates recently filed two FINRA arbitrations against Morgan Stanley for the recommendation and sale of highly risky bonds and stocks to retail investors.  Many of these bonds were rated “junk” at the time of the recommendation and were tied to the energy sector.

Through our investigation, we believe Morgan Stanley financial advisors across the entire country marketed and sold unsuitable bonds and stocks to investors and over-concentrated their portfolios in these securities.

Those bonds and stocks include Sandridge Energy, Inc., Swift Energy Co., Windstream Corporation, SeaDrill Limited, Citizens Communications Co., CenturyTel Inc., Cliffs Natural Resources, Inc., Peabody Energy Corp., Icahn Enterprises, E Trade Financial Corp., Chesapeake Energy Corp., Walter Investment Mgt. Corp., Sprint Nextel Corp., and Seagate HDD Cayman.  Both SandRidge Energy and Swift Energy have filed for bankruptcy protection.

In many cases, the financial advisors over-concentrated the investors’ portfolios in these energy bonds.  Financial advisors have a duty to only recommend suitable investments.  If you believe you may have been sold unsuitable stocks or bonds, please contact our office for a free consultation.

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