The Financial Industry Regulatory Authority (FINRA) licenses and regulates the stock brokerage industry. It requires stock brokerage firms and their stock brokers to be qualified, registered, and approved by the agency before they may offer and sell securities to the public. FINRA also requires its registrants to immediately report regulatory events, such as suspensions, fines, and customer complaints, against the firm and broker. FINRA maintains a database of investor complaints and disciplinary and employment history for registered representatives and publishes some of this information on its BrokerCheck website, www.brokercheck.finra.org. The FINRA BrokerCheck is purportedly useful for predicting future broker misconduct. Unfortunately, not all customer complaints are accurately or completely reported on the website. We are seeking investors with information about Morgan Stanley broker Michael B. Ralby to determine whether the reported information on the FINRA BrokerCheck website is accurate and complete.
FINRA reports that Mr. Ralby has been registered in the securities industry since 1984. Over the years, he has been registered with 8 brokerage firms: First Miami Securities Inc., Smith Barney Inc., D. E. Frey and Co. Inc., JW Genesis Securities Inc., First Union Securities Financial Network Inc., FSC Securities Corporation, Stanford Group Co., Oppenheimer and Co., Inc. and, most recently, Morgan Stanley. During that period, the FINRA BrokerCheck report indicates that Mr. Ralby has been the subject of one Civil Event and 4 Customer Disputes, 2 of which were pending as of August 18, 2016.
The Civil Event appears to be a claw back lawsuit filed by the receiver for the Stanford Group against Mr. Ralby for compensation he allegedly received from Stanford Group in connection with his employer's Ponzi Scheme. There are no allegations that Mr. Ralby knowingly participated in that scheme.
There is one customer dispute reported with allegations of violations of Florida statutes that was supposedly settled for $2,205,748.73; however, there is inconsistent information to the effect that the suit was dismissed insofar as Mr. Ralby was concerned. One customer dispute was rejected by the brokerage firm and supposedly no further action was taken by the customer. There were 2 pending arbitrations reportedly filed involving Mr. Ralby for allegedly misleading the customers with respect to the Stanford International Bank certificates of deposit while he was employed at the Stanford Group. We believe that Mr. Ralby's employers may have not accurately or completely reported all of the Customer Disputes involving him and request that all investors with complaints against Mr. Ralby contact our office immediately.
The most important of investors' rights is the right to be informed! We intend to notify FINRA of any and all unreported or inaccurate customer complaints against this firm and/or broker. This blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 35 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at email@example.com for answers to any of your questions about this blog post and/or any related matter.