The state settlement provides few details about the behavior that got Mr. Wyatt and Morgan Stanley into trouble. But closed testimony and thousands of pages of documents from the arbitration cases reviewed by The New York Times shed light on how the matter played out at the company.
At one point, Mr. Wyatt’s behavior raised enough concern that Morgan Stanley supervisors stopped him from trading in his personal accounts. At the same time, the company allowed him to continue trading money he managed for clients.
One of his colleagues in Mississippi said in closed arbitration testimony that she and others in the office were suffering from a “basic shock that nothing was happening to help Steve, help the clients, help the firm, help the office with what was going on,” according to a transcript.
“The broker is a problem in this case,” said Joseph Peiffer, a lawyer representing some of Mr. Wyatt’s clients. “But the real problem is that he was allowed to do what he did by Morgan Stanley.” Read full article here!