Ganesh Iyer (also known as Ganesh Ramachandran) of Houston Texas a stockbroker formerly registered with Morgan Stanley has been named in a customer initiated investment related arbitration claim in which Iyer and Morgan Stanley were ordered by a FINRA Arbitration Panel to pay $54,954.04 in compensatory damages to the customer based upon the Panel finding: (1) misrepresentations were made concerning fees charged to the customer (2) bad investment recommendations had been made to the customer (3) a botched 1035 Exchange caused the customer to incur surrender penalties and tax consequences and (4) risky and aggressive emerging markets exchange traded funds transactions were placed in the customer’s account as part of a trading strategy that was not suitable for the customer. Financial Industry Regulatory Authority (FINRA) Arbitration No. 17-01985 (Dec. 21, 2018).
Claimant asserted the following causes of action: violation of §33(A)(2) of the Texas Securities Act, breach of fiduciary duty, negligence, negligent misrepresentation, violation of the Texas Deceptive Trade Practices Act, breach of fiduciary duty of good faith and fair dealing, statutory fraud – Tex. Bus. & Com. Code §27.01, common law fraud, fraud by ondisclosure, and promissory estoppel. Claimant alleged that Iyer embarked on a strategy of aggressive, high-risk trading in her account, including but not limited to trading in emerging-market and aggressive exchange traded funds, which was contrary to her investment objectives.
Claimant further alleged that Iyer made unsuitable recommendations; failed to meet the requirements of Rule 1035 exchanges of annuities, resulting in tax consequences and surrender charges; and made misrepresentations concerning the management fees.
Financial Industry Regulatory Authority (FINRA) Arbitration No. 17-01985 (Dec. 21, 2018).
The Arbitration Panel found Iyer liable on the customer’s claims including: violation of Texas Business and Commercial Code Section 27.01; violation of Texas Deceptive Trade Practices Act; violation of Texas Securities Act Section 33(A)(2); breach of fiduciary duty; misrepresentation; negligence; and fraud.
FINRA Public Disclosure confirms that Iyer was discharged by Morgan Stanley Smith Barney LLC on January 28, 2016 founded on accusations that Iyer engaged in communications with customers of the firm in a manner which violated the firm’s procedures and policies.
