Shawn Good (Shawn Edward Good CRD# 2022168) is a former registered broker and investment advisor whose last known employer was Morgan Stanley (CRD#: 149777) of Wilmington, NC. His previous employers were Wells Fargo Advisors, LLC (CRD#:19616), also of Wilmington, and Charles Schwab & Co., Inc. (CRD#:5393) of San Francisco, CA. He has been in the industry since 1990.
Good has five disclosures on his record, three of which are customer disputes. The first was filed on 4/13/2022, alleging that from August 2019 to February 2022, he misappropriated funds from the customers’ Liquidity Access Line accounts. The clients request damages of $2,275,000.00; this claim is pending.
The latest claim was filed on 4/30/2022, with allegations that Good “misappropriated funds by soliciting an outside real estate investment opportunity” from 2015 through 2018. No damages are listed but this claim is also listed as pending.
Morgan Stanley terminated Good on March 10, 2022, after he refused to cooperate with an internal investigation following allegations from clients. FINRA began an investigation based on the information in the Uniform Termination Notice for Securities Industry Registration (Form U5) sent by Morgan Stanley.
On March 21, 2022, FINRA sent a letter to Shawn Good requesting his appearance for on-the-record testimony in accordance with FINRA Rule 8210. On March 30, 2022, Good confirmed through his legal counsel that although he received FINRA’s letter, he would not appear for on-the-record testimony at any time. Following this refusal, FINRA barred Good permanently and in all capacities effective 4/14/2022. Good signed a letter of Acceptance, Waiver & Consent (AWC) accepting the imposed sanction.
Following the FINRA investigation, the US Securities and Exchange Commission (SEC) initiated a civil action against Shawn Good. In the petition, the SEC describes a “multi-year Ponzi scheme perpetrated by Good involving his clients at Morgan Stanley Smith Barney, LLC.” The investors were defrauded out of approximately $4.8 million, with clients losing roughly $2 million.
The five clients involved were novice investors, which included a single mother of five children and retirees. These individuals trusted Good’s recommendations into the alleged investments. This included convincing the clients to transfer funds from their brokerage accounts as well as take advantage of their lines of credit with Morgan Stanley.
On Good’s instruction, these clients transferred funds into what they believed would be low-risk real estate developments and government bonds. Unfortunately, the transferred funds actually went into Good’s personal bank account. Good used the funds to pay previous “investors” in his scheme, as well as for more than $800K in credit card bills, Venmo transfers, and car note payments on his Tesla. At least three of these “investors” are owed money from Good.
During his testimony, Good invoked his Fifth Amendment rights to every question asked. This included questioning on how he planned to raise money to repay the defrauded investors.
One previous customer dispute filed on 9/11/2011 for “misrepresentation of an Ohio national annuity sold in his account” was denied. No additional information is available.
Did You Invest With Shawn Good?
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