Ex-Morgan Stanley Broker Barred Over Fraud Allegations

From Wall Street to Wall of Shame: My Insight into the Fall of Ex-Morgan Stanley Broker Gary Chang

I’ve followed a myriad of stories within the financial world, but few things are as arresting as the revelation that within our revered institutions, like Wall Street’s blue chips, there lies a hidden underbelly of wrongdoing. At the center of one such narrative is Gary Chang, a name previously associated with the respected powerhouse, Morgan Stanley. Chang represents a classic case of descent into the shadows of financial fraud that led to his professional undoing.

The Wrong Bend in Chang’s Journey

In my analysis, between September 2021 and June 2022, Chang diverted a worrying $58,560 from four unsuspecting clients. Boldly, he initiated unauthorized transfers to line his own pockets. Unsatisfied, allegations suggest he even sold off client securities to accumulate more illegitimate wealth. Yet, no matter how smart a person thinks they are, the truth has a way of coming to light.

Following a rigorous audit in July 2022, Chang’s shadowy transactions were exposed. While he avoided outright admission or denial of fault, he agreed to a cease-and-desist order and even pledged to return the exact amount he took. It reminded me of the famous quote: “The only thing necessary for the triumph of evil is for good men to do nothing.” In the end, it seems Chang preferred to take some action, albeit after being caught.

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Confronting the Consequences

Chang faced stringent punitive measures beyond restitution. He found himself shut out from the financial community, denied involvement with penny stocks and investment companies. His once-esteemed career had crumbled.

In December 2022, FINRA, the finance industry’s regulatory body, formally stripped Chang of his credentials for his misconduct. You can check out FINRA’s BrokerCheck to review the professional history of advisors, including their misconduct, which is something I always recommend doing.

Gary Chang: A Promising Career Derailed

As an analyst, I remember reviewing Chang’s career, which was, until his downfall, quite impressive. It’s a stark reminder that even those with gleaming resumes are capable of missteps. His affiliations, easily seen through FINRA BrokerCheck, now read as a cautionary tale.

Chang’s tenure at Morgan Stanley stretched from February 2, 2016, to August 9, 2022, right there in Cupertino, CA. Before this, he was with Cetera Investment Services LLC, marking his presence from Millbrae, CA from 2013 to 2016.

Looking Out for Investors: Recouping Investment Losses

When financial advisors like Chang cross the line, it’s not just personal careers that are impacted. Entire brokerage firms, such as Morgan Stanley in this case, become liable for the losses incurred due to employee misdeeds. As an investor, it’s crucial to remember that all is not lost if you find yourself in such an unfortunate situation.

Brokerage firms can be held accountable for inadequate supervision of their brokers. This is an imperative layer of protection for investors, offering a pathway to recover funds through the process of FINRA Arbitration.

If you’ve suffered financial harm at the hands of Gary Chang, or any advisor for that matter, it’s critical to take action. Harness the mechanisms in place to fight for what you’ve lost. After all, you have rights, and justice is due.

Last modified: February 23, 2024

Before I wrap up, let me share a startling financial fact: according to a study published in 2016 by the National Bureau of Economic Research, seven percent of financial advisors have been disciplined for misconduct. This statistic underlines the importance of thoroughly reviewing your advisor’s record, including their FINRA CRM number.

As you navigate the complex world of finance, remember to stay informed and vigilant. Reach out if you need assistance or advice—it’s what I’m here for, after all. Your financial safety should always be a top priority.

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