What You Need to Know
- Shawn Edward Good defrauded at least a dozen of his clients at the wirehouse, according to the Justice Department.
- He used clients’ funds for several luxury vehicles and vacations, his Wilmington residence and a condo in Florida.
- During a parallel SEC action, he invoked his Fifth Amendment right against self-incrimination to nearly every question.
A former Morgan Stanley broker pleaded guilty on Thursday to his role in a $7.2 million Ponzi scheme in which he defrauded at least a dozen clients of his at the wirehouse, according to court documents and the Justice Department.
Shawn Edward Good of Wilmington, North Carolina, pleaded guilty to wire fraud and money laundering and faces up to 360 months in prison, the Justice Department said.
Morgan Stanley declined to comment on Monday.
Good’s victims invested over $7 million based on false statements and misrepresentations made by the broker, according to the Justice Department.
Instead of investing the clients’ funds in land development or bonds, as he had promised them, Good used their money for luxury vehicles including a Mercedes-Benz, a Porsche Boxster, a Tesla Model 3, an Alpha Romeo Stelvio and a Lexus RX350; fine dining; and vacations to Las Vegas; Paris; Cinca Terra, Italy; Jackson, Wyoming; and other destinations.
He also spent clients’ funds on his Wilmington residence and a condominium in Florida, the Justice Department said.
To lend credibility to his scheme and elude…
