A Financial Industry Regulatory Authority arbitration panel has recommended clearing the record of a retired former Morgan Stanley financial advisor.
Marileigh Hensley joined the financial services industry in 1985, registering with Morgan Stanley when it was known as Morgan Stanley Smith Barney, according to her LinkedIn profile. She stayed with with the firm until January this year, when she retired, according to LinkedIn.
Hensley’s team had $991 million in client assets as of March 2021, according to Forbes.
Hensley has just one disclosure on her 36-year record in the industry, a customer dispute from March last year alleging “unsuitability with respect to investments in MS proprietary mutual funds - Jan 2015 to Mar 2021,” according to BrokerCheck.
The dispute was in connection with a claim brought against Morgan Stanley by Yvonne and Marvin Bachman in March 2021 accusing the firm of unauthorized trading, negligent supervision/retention and other violations related to their investments in the firm’s “various proprietary funds” described as “TRAK funds,” according to a Finra award document published last week.
The Bachmans originally sought damages in excess of $100,000, plus capital loss they purportedly suffered when they disposed of the TRAK funds, unrealized losses, “opportunities forgone” because of Morgan Stanley’s allegedly “inappropriate investments” and “advisory fees relating to Unnamed Party Marileigh Hensley’s (“Hensley”) management of Claimants’ accounts,” Finra says.
In April this year, the Bachmans and Morgan Stanley notified Finra’s Dispute Resolution Services that they have reached a settlement, according to the award document.
The settlement was for $14,995, according to BrokerCheck.
In May, Morgan Stanley filed a motion for expungement on behalf of Hensley, Finra says. The Bachmans made no response to the motion nor participated in the expungement hearing, according to the award document.
Last week, the arbitration panel recommended the expungement of the matter from Hensley’s record.
"It is noted that Unnamed Party Hensley was engaged in the securities business for over 35 years and the instant Occurrence is the only claim ever made against her right as she was retiring," according to the award document.
"It would be an injustice to Unnamed Party Hensley to have a successful career marred by false allegations ever, but even more so just before she retired. The allegations on the BrokerCheck® Report have adversely affected her business and professional reputation."