Morgan Stanley Broker Wins Expungement of Claim Filed by ‘Demanding’ HNW Client
A Financial Industry Regulatory Authority arbitrator this week granted Ilan Segev, a Boston-based Morgan Stanley private wealth advisor, expungement from his record of a claim filed by a former client who had $20 million in investable assets and had been given “no less than nine different investment proposals,” according to the award letter.
The arbitrator, Robert E. Anderson, in the expungement award letter finalized Tuesday, described the client at issue as “an experienced, demanding high net worth investor” who had a “conservative risk profile and was interested in maintaining a sizable bond portfolio.”
Morgan Stanley did not oppose Segev’s expungement request. A spokesperson for the firm did not respond to a request for comment. Segev’s lawyer, David I. Hantman, a principal at Bressler, Amery & Ross, declined to comment and said his client would also decline.
Segev in 2019 had engaged on the client’s behalf in “numerous calls, meetings, and the preparation of no less than nine different investment proposals,” to devise “a suitable bond portfolio,” according to the Finra arbitrator’s letter, which also noted Segev had constructed the portfolio “using many names on Morgan Stanley’s recommended list.” Among those were bonds issued by Anadarko Petroleum, an energy company which was acquired by Occidental Petroleum in August 2019.
In April 2020, “during a time of considerable COVID driven market volatility,” the client had complained about “a minor loss” in his Anadarko stake, the award letter states. In response, Morgan Stanley investigated and denied the claim, and then asked the client to transfer his account away, but also agreed to pay a pre-payment penalty on the client’s liquidity access line, the letter states. That payment represented a settlement of $9,222, according to Segev’s BrokerCheck record, but Segev did not contribute to the settlement, the award letter states.
On his BrokerCheck record, Segev said in a posted comment about the complaint: “The Firm denied the client’s sales practice complaint as lacking merit. Separately, the Firm agreed, as a client accommodation, to pay the client’s pre-payment penalty for his liquidity access line to facilitate the transfer of his accounts.”
In justifying why he issued the expungement award, the arbitrator Anderson wrote that Segev “took no part in the settlement” and also noted that the complaining investor had, after filing his complaint, praised Segev’s conduct throughout the process.
Anderson also concluded that the Anadarko bond was “suitable and met the customer’s risk profile and tolerance.”
At the Finra hearing, Segev had testified that the complaint had an “adverse impact” on “his business development efforts,” according to the award letter.
Segev began his industry career at Lehman Brothers in 2005, moved to Credit Suisse the next year and to Morgan Stanley in 2012, his BrokerCheck said.
Prior to joining the industry, Segev served as an Israeli career diplomat, according to the biography posted on his firm’s website.