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Selling Away Complaint Pending Against Morgan Stanley Financial Advisor Stephen Takeda

Stephen Takeda (CRD: 1100052) is a dually registered Broker and Investment Advisor at Morgan Stanley in Irvine, CA.

Broker’s Background

He entered the securities industry in 1983 and previously worked for Citigroup Global Markets, Inc.; Lehman Brothers, Inc.; and Dean Witter Reynolds, Inc.

Current And Past Allegations Of Conduct Leading To Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in November 2021, a customer dispute was filed against Stephen Takeda. The allegation states, “Plaintiff alleges, inter-alia, FA solicited an outside real estate investment opportunity that was not authorized by the Firm – 2004 to 2020.” The customer dispute is pending.

In addition, Stephen Takeda has been the subject of five disclosures, including the following:

  • May 2019 — A tax judgment/lien was levied in the amount of $57,788.39.
  • June 2018 — A tax judgment/lien was levied in the amount of $138,916.
  • April 2018 — A tax judgment/lien was levied in the amount of $139,069.
  • July 2017 — A tax judgment/lien was levied in the amount of $164,941.
  • February 1988 — A customer dispute was settled for $47,900.

For a copy of Stephen Takeda’s FINRA BrokerCheck, click here.

We Help Investors Recover Investment Losses

The Financial Industry Regulatory Authority (FINRA) strictly prohibits financial advisors from “selling away” or selling securities and investments to clients that are not offered by the brokerage firm with which they are employed. For example, it is illegal and a violation of industry rules for a financial advisor to recommend or even suggest that a client invest in the financial advisor’s own business or a business operated by his or her friends or family. It is not necessary that the financial advisor earn any compensation for recommending an outside investment.

FINRA Rule 3280 provides: “No person associated with a member shall participate in any manner in a private securities transaction except in accordance with the requirements of this Rule.  Prior to participating in any private securities transaction, an associated person shall provide written notice to the member with which he is associated describing in detail the proposed transaction and the person’s proposed role therein and stating whether he has received or may receive selling compensation in connection with the transaction; provided however that, in the case of a series of related transactions in which no selling compensation has been or will be received, an associated person may provide a single written notice.”

The purpose behind this prohibition is to ensure that a financial advisor only offers to sell securities that have been vetted by his or her employer brokerage firm through a rigorous due diligence process. Most brokerage firms have an approved list of investments, products, and research that can be provided or made available to clients. Any deviation by the financial advisor from the approved product list may constitute selling away.

The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis.  Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.

Attorney Matthew Wolper

Attorney Matthew WolperMatt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks. [Attorney Bio]