Ex-Morgan Stanley adviser ran Ponzi scheme, caused $2M in investor losses: SEC

A former Morgan Stanley adviser ran a Ponzi scheme and bilked his clients out of millions of dollars — money that was used to repay earlier victims and cover personal expenses such as Tesla car payments, according to the feds.

The SEC said the adviser — identified as Shawn E. Good of Wilmington, North Carolina — targeted “novice investors” in the scheme, including retirees and a single mother with young children and limited income. He allegedly convinced the clients to transfer money to his personal bank account.

Good purportedly swindled his clients out of at least $4.8 million in funds during the scheme, which he ran from late 2012 through at least February 2022 and led to more than $2 million in losses.

In a complaint filed in federal court, the SEC alleged that Good used at least $13,000 in stolen money to make payments toward his Tesla Model 3, $23,000 toward his Alfa Romeo Stelvio and approximately $800,000 toward outstanding credit card bills.

Good sent some $110,000 of the ill-gotten money out in Venmo payments to others with eyebrow-raising subject lines — which included “because youre sexy,” “Hotel for Destiny,” “Nailz” and “shopping,” according to the complaint.

The SEC alleges that a former Morgan Stanley adviser bilked clients out of $4.8 million.
AFP via Getty Images

“Good told clients that he would use these funds to invest in land development projects and tax-free North Carolina state…

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