Timothy Thomas Gibbons of New Orleans Louisiana a stockbroker formerly employed by Morgan Stanley is the subject of a customer initiated investment related arbitration claim where the customer sought $225,708.00 in damages supported by allegations that (1) energy-sector over-the-counter equities transactions executed in the customer’s account were unsuitable for the customer and (2) false or misleading statements had been made concerning those investments when Gibbons was associated with Citigroup Global Markets Inc. and Morgan Stanley Smith Barney. Financial Industry Regulatory Authority (FINRA) Arbitration No. 18-03927 (Nov. 20, 2018).
FINRA Public Disclosure reveals that Gibbons has been identified in three additional customer initiated investment related disputes pertaining to accusations of his misconduct during the time that he was employed by Morgan Stanley. In particular, a customer filed an investment related civil action in the Civil District Court for the Parish of New Orleans Louisiana that involved Gibbons’ activities in which the customer requested unspecified damages founded on allegations that the customer had been placed in stocks that were inappropriate given the customer’s objectives for investing. Civil Action No. 2015-10447 (Nov. 12, 2015).
On May 9, 2018, a customer filed an investment related complaint involving Gibbons’ conduct where the customer sought unspecified damages based upon accusations of bad advice concerning the purchase and retention of energy stocks which led the customer to experience unwarranted losses. Another customer initiated investment related arbitration claim concerning Gibbons’ conduct was settled for $930,000.00 in damages supported by allegations that transactions effected in the customer’s account were not suitable. FINRA Arbitration No. 18-02895 (Aug. 15, 2018).
FINRA Public Disclosure confirms that Gibbons has been fined $20,000.00 and suspended for eighteen months from associating with any FINRA member in any capacity founded on findings that Gibbons made unsuitable investment recommendations to elderly customers. Letter of Acceptance Waiver and Consent No. 2015047910601 (Nov. 17, 2017).
According to the AWC, at least five elderly investors had been poorly advised by Gibbons when he was associated with Morgan Stanley. Those customers were advised to concentrate between sixty-five and seventy-nine percent of their account balances in speculative energy sector investments. The AWC revealed that Gibbons’ recommendations, inter alia, failed to align with customers’ tolerances for risk, objectives for investing, and personal circumstances. Customers incurred losses of $960,000.00 from Gibbons’ bad investment advice. FINRA found Gibbons’ conduct violative of FINRA Rules 2010 and 2111(a).
Gibbons’ registration with Morgan Stanley has been terminated as of April 22, 2015.
