SEC Sues Ex-Broker Shawn Good Over Alleged Ponzi Scheme

Ex-Morgan Stanley Broker Accused of Defrauding Investors, Including Retirees

The Securities and Exchange Commission (SEC) has filed civil charges against former Morgan Stanley financial advisor Shawn Edward Good accusing him of operating a years-long Ponzi scheme and misappropriating millions of dollars from customers.

Shawn Good is accused of raising at least $4.8M from five clients at the firm, including retirees and a single mom with young children, to supposedly invest in low-risk, tax-free bonds and land development projects.

He told these inexperienced investors that they could earn 6% to 10% returns within months. Good did not give these customers any written statements, nor did he provide them with prospectuses on their supposed investments. The Commission said that these investors ended up losing over $2M.

Investment Scheme Allegedly Went On For Nearly 10 Years

The SEC contends that instead of investing the funds as promised, the ex-Morgan Stanley broker used the money to fund his own lifestyle and travel and pay for $800K in credit card bills. He also purportedly used some funds to pay back other victims in a Ponzi-like fashion.

The regulator claims that Good’s alleged Ponzi scam went on for almost a decade, nearly the entire time he was a Morgan Stanley registered representative. According to the New York Post, the broker-dealer fired Good in February 2022 after he declined to cooperate with an internal probe into allegations of misconduct. Now, the Commission is seeking disgorgement of ill-gotten gains, prejudgment interest, civil penalties, and other relief.

According to BrokerCheck, Shawn Good is also a former registered investment adviser. He has worked in the industry for over 31 years. Other firms where he has worked include Wells Fargo Advisors, Charles Schwab & Co., and Wachovia Securities.

Skilled Brokerage Firm Negligence Lawyers

For over 30 years, Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) has represented investors in pursuing damages from broker-dealers in FINRA arbitration. Financial firms must protect clients and their money. The brokerage firm may be held liable when failure to supervise or detect misconduct leads to investor losses.

This is not the kind of legal claim that you want to pursue without seasoned broker misconduct attorneys representing you. Call SSEK Law Firm at (800) 259-9010 today if you suffered losses when working with ex-broker Shawn Good.