Securities Arbitration Lawyer Blog
The Financial Industry Regulatory Authority (“FINRA”) has suspended financial advisor Constantinos Maniatis from the securities industry for 30 days. Mr. Maniatis consented to the suspension after FINRA alleged that he engaged in discretionary trading without written authorization in seven customer accounts between May 4, 2018, and February 27, 2019. FINRA also fined Mr. Maniatis $5,000.
The alleged conduct occurred while Morgan Stanley employed Mr. Maniatis in Dallas, Texas. Morgan Stanley discharged Mr. Maniatis in May 2019, alleging misconduct related to a non-discretionary account and diverting of revenue from “assigned rep code.”
If you have suffered financial losses investing with Constantinos Maniatis, or suspect that Mr. Maniatis did not have your best interest in mind when recommending investments or making account transactions, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your brokerage account.
Iorio Altamirano LLP represents investors that have disputes with their financial advisors or brokerage firms, such as Morgan Stanley.
FINRA Letter of Acceptance, Waiver, and Consent No. 2019062788601
FINRA and Mr. Maniatis entered into a Letter of Acceptance, Waiver, and Consent No. 2019062788601on April 26, 2021, after FINRA alleged that between May 4, 2018, and February 27, 2019, while associated with Morgan Stanley, Mr. Maniatis exercised discretion in seven customer accounts despite the fact that Morgan Stanley no longer permitted such discretionary trading. Several of the transactions at issue involved municipal securities. Specifically, FINRA alleged:
- During the relevant time period, between May 4, 2018, and February 27, 2019, Maniatis exercised discretion in seven customer accounts on 105 occasions.
- Thirteen of the transactions involved municipal securities.
- Although Morgan Stanley and the customers had previously authorized the exercise of discretion in the customer accounts at issue, at the time of the transactions at issue, Morgan Stanley did not permit the exercise of discretion in the accounts and no longer accepted the accounts as discretionary accounts.
- Accordingly, Mr. Maniatis violated NASD Rule 2510(b), FINRA Rule 2010, and MSRB Rule G-17
Unauthorized trading often occurs in non-discretionary accounts, where a customer retains discretion. In non-discretionary accounts, brokers must obtain a customer’s permission every time before placing a trade.
Unauthorized trading is an unethical and illegal practice. It is also a violation of securities rules and regulations and can cause enormous harm to customers.
Financial Advisor Constantinos George Maniatis (CRD No. 4253356)
Constantinos Maniatis has 17 years of experience in the securities industry and has been associated with the following firms:
- Morgan Stanley in Dallas, Texas, from June 2009 to May 2019.
- Citigroup Global Markets Inc. in Dallas, Texas, from October 2006 to June 2009.
- Merrill Lynch, Pierce, Fenner & Smith Incorporated in New York, New York, from January 2001 to November 2005.
Mr. Maniatis is currently not registered with any firm.
According to his public disclosure report with FINRA, Mr. Maniatis has been the subject of at least one customer disputes:
- Customer Dispute (December 2014): A customer filed a written complaint to Morgan Stanley alleging that Mr. Maniatis made misrepresentations related to an investment strategy that involved energy positions. The customer did not file a securities arbitration complaint, instead choosing to complain directly to the brokerage firm. The firm denied the customer any compensation.
Morgan Stanley – A Duty to Supervise
Financial institutions like Morgan Stanley must properly supervise financial advisors and customer accounts. Brokerage firms must establish and maintain a reasonably designed system to oversee account activity, such as unauthorized trading, to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to supervise its financial advisors or the investment account activity sufficiently, it may be liable for investment losses sustained by customers.
How to Recover Financial Losses or Obtain a Free Consultation
If you have suffered investment losses with Constantinos Maniatis or Morgan Stanley, or suspect other inappropriate activity occurred in your investment or retirement account, contact New York securities arbitration attorney August Iorio of Iorio Altamirano LLP. August Iorio can be reached at august@ia-law.com or toll-free at (855) 430-4010 for a free and confidential review of your legal rights.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. Iorio Altamirano LLP pursues FINRA claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by stockbrokers and brokerage firms.