John Andrew Rochester of Santa Fe, New Mexico, a stockbroker associated with Morgan Stanley, was the subject of a customer initiated investment related Financial Industry Regulatory Authority (FINRA) securities arbitration claim in which the customer was awarded $554,834.70 in compensatory damages because Morgan Stanley was held liable on the customer’s claims of breach of fiduciary duty and associated misrepresentations; breach of fiduciary; fraud in connection of breach of fiduciary duty; negligent misrepresentation associated with breach of fiduciary duty; breach of suitability rules; breach of diligence rules; breach of know your customer rules; breach of commercial honor and just and equitable principles of trade; fraud in connection with breach of FINRA rules; negligent misrepresentation in connection with FINRA rules by Rochester during his association with Morgan Stanley. FINRA Arbitration No. 21-02264 (March 23, 2023).
According to the Award, Morgan Stanley “had actual knowledge of the limits on a limited conservator’s authority, it transferred large sums of money from Joan Ellard’s account through unauthorized transactions at the behest of the limited conservator, even though these transactions exceeded the clear limits set forth in a court order.”
This is not the first time that Rochester has been referenced in a customer initiated investment related dispute concerning Rochester’s conduct in the securities industry. FINRA Public Disclosure shows that Rochester was also referenced in a customer initiated investment related complaint that was settled on January 15, 2010, for $60,223.78 in damages based upon allegations that Rochester made misrepresentations regarding a variable annuity that the customer purchased in September 2006 when Rochester was associated with Morgan Stanley Co. Incorporated.
Rochester has been associated with Morgan Stanley in Santa Fe, New Mexico since June 1, 2009.