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