Thomas Niles, formerly of Morgan Stanley, Suspended Three Months from Securities Industry
Have you lost money with financial advisor Thomas Niles of Saratoga Springs, New York? We are investigating allegations made by FINRA, the Financial Industry Regulatory Authority, against Thomas F. Niles. FINRA suspended Niles from the securities industry for three months and fined him $5,000 after he was alleged to have engaged in short-term trading of Unit Investment Trusts (or UITs) in 148 customer accounts.
UITs are not designed for short-term trading because of their commissions and costs of trading. Between July 2012 and December 2014, Thomas Niles recommended on numerous occasions that his customers sell their UITs and then purchase new, different UITs. FINRA alleged this to be unsuitable in view of the frequency and costs of trading, which can be as high as 3.95%. FINRA further alleged that his customers’ average holding period for UITs was only 285 days.
Thomas Niles was a financial advisor and registered representative of Morgan Stanley from March 2009 to September 2015. He is now affiliated with Janney Montgomery Smith, from September 2015 to the present. He worked at branch offices in Saratoga Springs, New York.
Brokerage firms like Morgan Stanley have a responsibility to adequately supervise all representatives who are registered through their firm. Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies. When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.
Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado; Ann Arbor, Michgan; and Seattle, Washington. We represent investors in FINRA arbitration proceedings in all 50 states, including investors in upstate New York. Our attorneys have represented over one thousand investors against many brokerage firms in the past, including Morgan Stanley.
Click to view: Niles, Thomas FINRA AWC
Click to view: Niles, Thomas BrokerCheck 2.9.18
If you lost money with Thomas Niles or Morgan Stanley, please CONTACT US at 720-599-3505 for a free evaluation of your case.
Israels & Neuman, PLC is a private law firm and is not affiliated with any government or law enforcement agency. Any investigation referenced in this blog is independent in nature and is being conducted by our law firm privately, not in conjunction with any government or law enforcement agency. All information contained in this blog should be deemed statements of opinion derived from the author’s review of public records, not statements of fact. This blog is advertising material and does not create an attorney client relationship, nor does it constitute legal advice. Everyone’s situation is different and the question of whether or not you have a claim will vary on a case-by-case basis. In contingent representation, clients may still be liable for costs.