Advertised as a “Customized Solution for Concentrated Stock Options”, Morgan Stanley’s Income Enhancer Strategy was offered to clients who were told they were in need of a specialized covered call writing strategy. Clients were told the strategy was conservative and repeatable, and that Morgan Stanley would monitor, protect, and harvest their investments. Unfortunately, some Morgan Stanley clients have recently opened their account statements to learn that they suffered significant losses due to the Income Enhancer Strategy. Financial advisors (brokers) have a legal and regulatory obligation to not make material misrepresentations and omissions when marketing securities or proprietary investment strategies.
Peiffer Wolf and Daren A. Luma are currently investigating brokers who recommended Morgan Stanley’s Income Enhancer Strategy to their clients. Contact Us by calling 585-310-5140 or by filling out an online Contact Form for a FREE Consultation.
In 2002, Morgan Stanley started offering the Income Enhancer Strategy through its Portfolio Management. The Income Enhancer Strategy was only offered to clients with a specific profile, however fitting the profile doesn’t mean that clients do not have rights and reasonable expectations to be told the truth about recommended strategies.
According to Morgan Stanley, requirements for clients to be considered include owning single-ticker equity positions of $1 million or more, owning multi-position accounts of $2 million or more, not being corporate insiders or subject to trading restrictions, and wanting to keep your current positions but generate additional cash flow.
If you believe you were offered the Income Enhancer Strategy by a broker who misrepresented the risks, or if you have sustained significant losses because of the Income Enhancer Strategy, it is imperative to take action.
Peiffer Wolf and Daren A. Luma have represented thousands of investors, and we remain committed to fighting on their behalf. Contact Us today by filling out a Contact Form on our website or by calling 585-310-5140 to schedule your FREE Case Evaluation.
The Meridian Wealth Management Group presents itself as “an extension of your Morgan Stanley Financial Advisor” and “works with more than 400 Morgan Stanley Advisors”. It also says it “delivers an exclusive service to clients who are in need of a strategy to help unlock the value of concentrated stock positions.”
According to FINRA’s BrokerCheck, Michael Wagner, Meridian’s Executive Director, has been the subject of 3 disclosures so far. Under the allegations of “misrepresentation with respect to option strategy in managed accounts – January 2019 to January 2020”, one customer dispute was settled for $1,500,000.00. The more recent Customer Dispute on 11/1/2021, which is still pending, is requesting damages in the amount of $15,708,558 under allegations of “unsuitable options investment strategy”. The 11/1/2021 pending disclosure is also listed as a Customer Dispute in Michael K. Spector’s BrokerCheck and Elizabeth Layne’s BrokerCheck. Both Spector and Layne are Senior Vice Presidents at Meridian.
If you believe you were offered the Income Enhancer Strategy by a broker who misrepresented the risks, or if you have sustained significant losses because of the Income Enhancer Strategy, it is imperative to take action. Contact Us today by filling out a Contact Form on our website or by calling 585-310-5140 to schedule your FREE Case Evaluation.