Sean P. Righter of Morgan Stanley Faces Multiple Customer Disputes

Sean P. Righter (CRD# 5419832) is a former financial advisor who was registered with Morgan Stanley from June 2009 through February 2025. According to records maintained by the Financial Industry Regulatory Authority (FINRA) BrokerCheck, Righter has a concerning history that includes five customer disputes, three of which have been resolved through substantial settlements and two of which remain pending.

Allegations against Righter involve unsuitable investment strategies, high-risk account structures, and losses connected to managed and wrap account programs.

Customer Disputes and Arbitration Awards

According to BrokerCheck, Righter is the subject of five customer disputes.

Resolved Complaints

In July 2024, a customer filed a complaint alleging that Righter recommended an unsuitable investment strategy and failed to properly assess the client’s investor profile. The case was settled on December 31, 2024, for $20,000, with Righter making no personal contribution to the settlement.

In August 2023, an arbitration was filed (Case No. 23‑02361) alleging unsuitable investments in managed/wrap accounts and exchange-traded funds (ETFs) between 2020 and 2023. The case was resolved in October 2024 for a $315,000 settlement. Righter did not contribute to the payout.

In March 2023, another arbitration (Case No. 23‑00651) alleged unsuitable recommendations involving equity investments, including common and preferred stocks, between 2020 and 2023. This case settled in July 2024 for $1,200,000. Again, Righter made no personal contribution.

Pending Complaints

In March 2025, an arbitration was filed (Case No. 25‑00507) alleging an unsuitable investment strategy involving equities, managed/wrap accounts, and ETFs from January 2021 through January 2025. The case is currently pending, and the claimant seeks $1,300,000 in damages.

In February 2025, another arbitration was filed (Case No. 25‑00362) alleging unsuitability in managed/wrap accounts between November 2020 and January 2025. This matter remains unresolved, and damages have not been specified.

Understanding Unsuitable Investments

An unsuitable investment is one that does not match an investor’s goals, risk tolerance, financial circumstances, or experience. Advisors are legally obligated to consider factors such as income, age, time horizon, and investment objectives when recommending products.

As confirmed by Investopedia, unsuitable investments often lead to excessive risk exposure, poor diversification, or inadequate returns, especially when clients are placed into strategies inconsistent with their needs. When unsuitable advice is given, investors can sustain significant financial harm.

Understanding Managed and Wrap Accounts

A managed account or wrap account is a fee-based investment program where clients pay a flat annual fee—often between 1% and 3% of assets under management—to cover portfolio management, brokerage, and administrative services. While these accounts can simplify costs and reduce the incentive for excessive trading, they are not appropriate for every investor.

Wrap accounts may expose clients to hidden fees, underperformance relative to costs, and conflicts of interest, especially when advisors recommend products within the firm’s own platform. For investors who trade infrequently, paying an ongoing wrap fee can significantly erode long-term returns.

Understanding ARK Separately Managed Accounts (SMAs)

Separately Managed Accounts (SMAs), such as those offered by ARK Invest, are customized portfolios where investors directly own the underlying securities. While SMAs can provide personalized strategies and tax advantages, they also carry heightened risks. Investopedia highlights that SMAs are generally designed for sophisticated, high-net-worth investors who can withstand volatility and high minimum investment thresholds.

For clients lacking the financial profile or risk tolerance for such accounts, being placed into ARK SMAs or similar strategies can result in unexpected exposure to high-risk growth sectors and significant portfolio fluctuations.

What Should Affected Clients Do?

If you worked with Sean P. Righter at Morgan Stanley and suspect that you experienced financial losses due to unsuitable investment strategies, mismanaged accounts, or high-risk SMA recommendations, you have options to protect your rights. Begin by reviewing your account statements and documenting potential losses. Consider consulting an experienced securities fraud attorney to determine whether you may have a claim.

Recovering Losses from Sean P. Righter’s Conduct

If you invested with Sean P. Righter and believe you were misled, improperly advised, or financially harmed as a result of his actions, you may be eligible to recover your losses.

The Securities and Investment Fraud attorneys at Levin Papantonio are actively investigating claims involving Sean Righter and Morgan Stanley. Our legal team can assess your situation, determine whether you may have a claim, and help you pursue recovery through FINRA arbitration or other legal avenues. Investors have rights—and Levin Papantonio is committed to protecting them.

Sources:

FINRA

BrokerCheck

Investopedia