But even though the scam targeted Morgan Stanley clients and the advisor admitted using a Morgan Stanley product to carry it out, the firm has fought efforts to hold it responsible.
"So, effectively, Morgan Stanley is lending money to the victims of this scheme and that money then gets diverted into Shawn Good's pocket," Easley said.
Morgan Stanley, which topped earnings expectations Tuesday thanks in large part to its wealth management business, declined an interview request.
But more important than all of that, she said, was that he worked for Morgan Stanley.
Morgan Stanley was among 16 firms charged, all admitting they violated federal securities laws.
Persons:
Morgan Stanley, Caitlin Andrews, It's, Shawn Edward Good, Good, Shawn Good, Michael F, Easley Jr, Shawn Good's, Easley, pilfered, Marc Fitapelli, Andrews, Fitapelli, Charles Hayward of, whatever's, Hayward, CNBC Andrews, I've, Caitlin, Louis Straney, Romeo Stelvio, Straney, Morgan Stanley's
Organizations:
Prosecutors, CNBC, Destiny, Easley, Eastern, Raleigh, Financial Industry Regulatory Authority, IRS, North Carolina State Bureau of Investigators, Lexus, Porsche, Tesla, Securities and Exchange, SEC
Locations:
Carolina Beach , North Carolina, Morgan Stanley's Wilmington, North Carolina, of North Carolina, New York, Charles Hayward of Wilmington, Santa Fe , New Mexico, France, Italy, Spain, Netherlands, Wilmington, N.C