Morgan Stanley Smith Barney Named In Customer Churning Claim

Christopher J. Cowans, a stockbroker formerly registered with Morgan Stanley Smith Barney, has been named in a customer initiated investment related arbitration claim on December 11, 2015, in which the customer has requested $600,000.00 in damages based upon allegations that between March of 2011 and December of 2013, Cowans effected excessive transactions in the customer’s account pertaining to exchange traded funds, options, and stock.
FINRA Public Disclosure reveals that Cowans has been named in eight additional customer initiated investment related complaints regarding allegations of his misconduct while employed with Morgan Stanley & Co. Inc., UBS PaineWebber Inc., PaineWebber Incorporated, and Prudential Securities Incorporated. Particularly, on March 7, 1996, a customer initiated investment related complaint involving Cowans’ conduct was settled for $24,999.00 in damages based upon allegations that Cowans effected excessive and unsuitable transactions in the customer’s account.
Subsequently, on March 19, 1999, a customer initiated investment related arbitration claim involving Cowans’ conduct was settled for $40,000.00 in damages based upon allegations that Cowans violated Securities and Exchange Commission rules, breached his fiduciary duty to the customer, and churned the customer’s account. The customer additionally alleged that PaineWebber Incorporated negligently supervised Cowans’ conduct.
On November 26, 2003, another customer initiated investment related arbitration claim concerning Cowans’ activities was resolved for $12,000.00 in damages based upon allegations that Cowans effected unsuitable investment allocations of the customers’ assets, effected unsuitable transactions in bond funds and individual equities, and churned the customer’s account.
Further, on July 24, 2008, a customer initiated investment related arbitration action regarding Cowans’ conduct was settled for $31,150.00 in damages based upon allegations that Cowans effected excessive trades in the customer’s investment account. On February 19, 2010, another customer initiated investment related complaint pertaining to Cowans’ conduct was settled for $14,900.00 in damages based upon allegations that Cowans, while in the capacity as the customer’s financial advisor, effected unsuitable transactions in the customer’s account pertaining to closed end funds and individual equities.
On December 19, 2014, the Securities Division for the Commonwealth of Massachusetts imposed a heightened supervision restriction on Cowans’ securities registration and prohibited him from having supervisory or principal duties based upon Cowans’ consent to findings that he was subject of twelve complaints concerning allegations of misrepresentation, use of margin on an unauthorized basis, unauthorized trading, unsuitable recommendations, and excessive trading in customer accounts.
Cowans’ registration with Morgan Stanley was terminated on October 21, 2014. Since November 11, 2014, he has been registered with Arthur Wood Company, Inc.