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June 10, 2015

Morgan Stanley Facing $400 Million Claim after Advisor has Affair with Client

Morgan Stanley advisor Ami Forte is accused of having an affair with the now deceased co-founder of the Home Shopping Network, Roy Speer. According to Mr. Speer’s widow, at the time of his death, her husband was both physically and mentally impaired. He was wheelchair bound with a full time caregiver. His declining mental capacity made it difficult for him to oversee his financial matters, so he delegated Forte to take care of some of his financial matters. Mr. Speer’s widow is now accusing Forte of making approximately 12,000 unauthorized trades in a five year period leading up to his death. These trades produced almost $40 million in commissions.

The value of Mrs. Speer’s claims was originally estimated to be $170 million. The claims now are estimated to be much higher in value due to the provisions of Florida’s Elder Exploitation Law. Under this law, Morgan Stanley could be culpable to pay approximately $300 million in punitive damages.

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