Compliancex

A former risk officer at Morgan Stanley is suing the bank over his termination. He claims that the bank fired him after he expressed concern over a trader’s activity and recommended that the activity be reported to FINRA.

Clifford Jagodzinski filed a complaint on Wednesday in federal court in New York, according to Bloomberg News. He said in the complaint that he reported securities “flipping,” in which a wealth manager was trading solely to drive up his commissions. He said that his superiors initially appreciated his findings, but then told him to stop his investigation. When Jagodzinski wanted the activity to be reported to FINRA, he was fired.

Here’s more from Bloomberg:

Christine Pollak, a spokeswoman for Morgan Stanley, said in a phone interview that the company believes “the complaint is without merit” and will defend itself in the case.

Jagodzinski also claimed he had discovered improper trading by other employees, found that some financial advisers failed to register home offices as alternative work sites, and found that one adviser was abusing drugs.

The complaint, alleging violations of the Dodd-Frank whistle-blower statute, seeks reinstatement and at least $1 million in damages.

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