Ami Forte, a top Morgan Stanley financial adviser, is accused of milking $40 million from the investment accounts of a wealthy client she regularly bedded.
An industry regulatory panel determined that Forte, 58, bedded Roy Speer, the co-founder of the Home Shopping Network, while milking his investment accounts without his knowledge.
Forte reportedly carried on an illicit affair with Speer from 2009 until his death in 2012.
She plundered his investment accounts for over $40 million in trading fees in an illegal practice called “churning”.
Churning occurs when investment banks earn large fees from trades using their wealthy clients’ money without their clients knowledge or permission.
It isn’t clear how much money Forte was paid in kickbacks from Morgan Stanley for her illegal trades.
The Financial Industry Regulatory Authority, which is similar to a court of law, ordered Morgan Stanley to pay Speer’s estate $32.8 million. Forte and her manager were ordered to pay the estate an additional $1.5 million.
The regularity panel did not award punitive damages.
Unlike Oprah who checks her bank accounts daily, Speer relied on Forte to manage his wealth.
Speer’s long-suffering wife, Lynnda Speer, had sought $400 million in compensation and punitive damages after she discovered the illegal trades.
Despite the scandalous allegations, Morgan Stanley has not changed its code of conduct regarding sexual relations with clients.
It’s in the bank’s best interests for financial advisers to woo and sometimes bed their wealthy clients. Isn’t that why they hire sexy financial advisers in the first place?
