WILMINGTON, N.C. (WECT) – New details in the alleged Ponzi Scheme conducted by a Wilmington man show years worth of investments lost, and how the Securities and Exchange Commission says how one man spent his clients money.
Shawn E. Good worked for Morgan Stanley, which terminated his employment in February for reportedly refusing to cooperate with an internal investigation. When reached for an interview, a Morgan Stanley spokesperson provided a statement.
“This individual is no longer employed at Morgan Stanley. The conduct alleged in the complaint is plainly unacceptable. We are currently reviewing the matter, which affects a small number of clients, and are cooperating with the SEC and other government authorities,” according to the statement.
Good reportedly refused to cooperate with an internal review with Morgan Stanley, and when questioned by the SEC, asserted his right to remain silent under the Fifth Amendment.
SEC filings claim Good ran the scheme for a decade.
“Starting around December 2012, and continuing to at least February 2022, Good solicited clients to transfer funds to Good’s personal bank account, ostensibly to make low-risk investments in real-estate development projects and tax-free government bonds. Often, clients funded these transfers using Morgan Stanley credit lines secured by the clients’ investments at the firm. But Good in fact used those funds to repay his earlier victims and also to pay his personal expenses,” according to the filings.
Those documents show at least two of the victims live in Carolina Beach and Kure Beach — a mother and daughter who lost more than $2 million investing with Good. However, that money is less than half of what the federal government says he has taken from clients.
“To date, the Commission staff has identified at least $4.8 million of investor funds drawn into this scheme, resulting in at least $2 million of investor losses. At least three investors are currently owed money as a result of investing in Good’s scheme,”…
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