$1.3-Mln Morgan Stanley Broker Dropped Over Inherited Account Issue Lands at D.A. Davidson
A $1.3 million-producing broker in Pasadena, California, joined D.A. Davidson & Co. last week after being terminated by Morgan Stanley for allegedly miscoding inherited accounts, according to sources familiar with the matter.
Michael Campopiano, who had individually been managing roughly $135 million in client assets, according to one source, joined D.A. Davidson on July 29, his BrokerCheck report indicates. The 20-year broker had spent much of his career with Morgan Stanley and predecessor firm Dean Witter, joining from Merrill Lynch in 2002, according to his BrokerCheck.
The termination shows that the fallout from Morgan Stanley’s review of inherited account coding issues continues more than eight months after the firm fired more than 10 brokers over the issue in November.
The review has drawn attention both for its potential implications for other firms with succession planning programs, which typically split commissions between retired and inheriting brokers for a set number of years, and because it has ensnared a number of higher-end producers.
Campopiano had ranked 62nd on Forbes’ 2021 list of “Best-in-State” wealth advisors with $751 million in AUM for his former Morgan Stanley team, according to the publication.
Most of the brokers expelled in recent months for improperly taking credit for trades in the Former Advisor Program, have found an open door at regional or independent firms. Another California broker earlier in July convinced the rest of his team to join him at independent broker-dealer LPL Financial.
Termination language was not yet reflected on Campopiano’s registration record as of Wednesday afternoon, and Campopiano did not return a request for comment sent via social media.
Campopiano wrote in a LinkedIn post last week about his move to D.A. Davidson: “Excited to start my next adventure with an 85+ year old, employee-owned organization.”
Spokespeople for Morgan Stanley and D.A. Davidson confirmed Campopiano’s move but both firms declined further comment on the matter.
Separately, Morgan Stanley in July filed a pending lawsuit, asking a federal court in Oregon to restrain another former broker it fired that month–and who also joined D.A. Davidson–over similar allegations of miscoding inherited accounts.
The wirehouse alleged that Robert S. Sevcik was trying to woo former customers to his new firm in Medford, Oregon, in violation of a 2017 agreement he signed with a retired broker, James Maddux.
Sevcik, who was terminated from Morgan Stanley on July 12, managed around $160 million in assets that he had inherited through the FAP and which generated $1 million in annual revenue, Morgan Stanley alleged in its complaint. His lawyers have denied the allegations in his response.
Former Morgan Stanley brokers are prohibited under the FAP from soliciting accounts for at least a year, or for the duration of the five-year transition period, according to court documents.
D.A. Davidson, based in Great Falls, Montana, has about 760 brokers, according to its website.