Silver Law Group is currently investigating Boston, MA and New York, NY based broker Cornelius Peterson regarding complaints pertaining to failure to provide due diligence to investor clients, misappropriation of client funds and misrepresentation.
Based on FINRA’s BrokerCheck report on Peterson, a complaint was filed on September 1, 2017 alleging that Peterson provided misleading information to investor clients during his employment at Morgan Stanley Smith Barney. In 2016, Peterson and his colleague James S. Polese were both charged with allegations relating to stealing upwards of $450,000 from one of their elderly clients. The allegations include misappropriating at least $350,000 of client’s funds by using $100,000 of the funds to make investments in their own names and directing the remaining $250,000 to their own personal bank accounts. In addition, several unauthorized withdrawals from the client’s account were made that totaled $93,000. Thus far, Peterson has a permanent suspension and the current charge is still pending.
Peterson was previously employed at Morgan Stanley Smith Barney from 2011 to 2017 and St. Lawrence University from 2007 to 2011.