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Morgan Stanley Faces Whistleblower Lawsuit

April 13, 2018

Morgan Stanley is facing a whistleblower lawsuit from one of its former brokers accusing the firm of harassing and firing her after she reported alleged investment improprieties, the Connecticut Law Tribune writes.

June Strunk claims in her suit, filed in Connecticut’s New London Superior Court, that executives at the wirehouse’s Mystic, Conn., branch not just ignored her reports but went as far as punishing her for them, according to the legal news web publication. The suit alleges Strunk’s complaints were first handled by then-complex manager for the Mystic branch Catherine Galgano until David Swartz took over Galgano’s responsibilities in 2016, the Connecticut Law Tribune writes.

Swartz allegedly met with Strunk in July 2016 shortly after starting his new post and told her “without any basis or specific examples” that Mystic branch advisors were complaining about her, according to the suit cited by the web publication.

Galgano allegedly failed to address several instances of alleged misconduct and Strunk “found herself in the crosshairs of an escalating harassment campaign” against her, including not getting a bonus she used to receive, according to the complaint cited by the web publication. Strunk was constructively discharged from Morgan Stanley last May, the Connecticut Law Tribune writes. But there was further retaliation after she left Morgan Stanley, according to the suit cited by the Connecticut Law Tribune. Strunk had been with the firm since 2009, according to her BrokerCheck profile, and is currently registered at Janney Montgomery Scott.

Strunk is seeking more than $1 million in damages, Robert Mitchell of Mitchell & Sheahan, one of her lawyers, tells the web publication.

(Getty)

Mitchell also says there’s no proof Morgan Stanley “went after her, just circumstantial evidence based on the timing of when she reported what she reported and how they treated her,” the Connecticut Law Tribune writes. Morgan Stanley and Swartz did not respond to the web publication’s requests for comment.

By Alex Padalka
  • To read the Connecticut Law Tribune article cited in this story, click here.