Robert Inbody – Morgan Stanley is a Fraud

Robert Inbody Morgan Stanley is a big name in the finance industry of California. However, everything that glitters isn’t gold and this saying applies completely in the case of Robert Inbody. 

At first, he seems like a genuine and caring financial avidor. However, the fine print in his agreements tells a whole nother story. The provisions in his disclosures suggest that you’d be at a great disadvantage as a client if you’re working with Robert. Also, they indicate that it’s more profitable for Robert and his team to ignore your interests. 

Read the following review of Robert Inbody Morgan Stanley before you trust him with your financial future. 

Who is Robert Inbody Morgan Stanley?

Robert Inbody Morgan Stanley is a financial advisor based in San Diego, California. His office is located at 1111 Prospect St, La Jolla, CA 92037, US and his contact number 858-729-5010. 

Robert has been in Morgan Stanley since 1971 and has accumulated many accolades and awards in his career. His services include fixed income, alternative investments, asset management, exchange traded funds, cash management, commodities, and many others. 

At a glance, Robert Inbody Morgan Stanley seems like a trustworthy financial advisor with decades of industry experience. However, if you dig deeper, you find a long history of client disputes and policies that put you at a huge disadvantage. 

Certainly, Robert and his team try their best to hide these hard-hitting red flags from everyone. But as an investor, it’s your right to know the good and the bad of an advisor. 

Reasons Why You Can’t Trust Robert Inbody Morgan Stanley:

Long History of Client Disputes

The FINRA BrokerCheck profile of Robert shows that he has had multiple disputes with his clients. Robert’s first dispute was in 1990 where the client alleged that he failed to supervise the former Dean Witter account executive Mr. White. Moreover, the client alleged that such failure contributed to his losses. 

The claimant had requested damages worth more than $100,000. However, the case settled for $56,000. 

After this, Robert had multiple disputes in 1992. The first one is dated 3-9-1992. Here, the client won arbitration against Robert and Dean Witter as Robert failed to properly supervise Dean Witter A/E Thomas Monahan. They also alleged that such failure contributed to a $400,000 trading loss in index options. 

The court awarded the claimant $30,000 in damages. 

Robert’s third dispute is dated 8-18-1992 where the client has alleged misrepresentation, unauthorized trading and breach of fiduciary duty. The court awarded the claimant $83,000 in damages. 

Robert’s fourth dispute is dated 8-26-1992 and it’s another arbitration he lost. The client alleged breach of fiduciary duty, fraud, negligence constructive fraud / rescission of release. In this case, the court had granted $218,000 in damages

The final dispute listed on his FINRA BrokerCheck profile is dated 6-7-1994 where the client alleged that her commodity trading was unsuitable for her. The court granted $4,000 in damages to the client as all claims against Robert were dismissed. 

Note that all of these disputes are court cases. Most clients who face any problems with their financial advisor avoid filing a claim against them. So, having so many disputes with his clients tells a lot about the professionalism Robert Inbody has. 

Using Clients’ Funds for Personal Profit

The multiple disputes Robert has had with his clients are just the tip of the iceberg. Currently, Robert’s disclosures have too many red flags to count. The biggest red flag is that he trades the recommended investments. 

This means he can buy or sell the investments he recommends you to trade. Trading recommended investments leads to a ton of conflicts of interest because the advisor can use his clients’ funds to manipulate the returns of the investment for himself. 

Front-running is a common example of how advisors abuse their clients’ funds. In front-running, the advisor buys or sells a security before suggesting a trade of the same. They might short-sell a security and suggest their clients to sell its every unit for a hefty profit. It’s sheer manipulation and you agree to this when you sign up as a client. 

Charging 12b-1 Fees

Another prominent issue in Robert’s services is that he charges 12b-1 fees. This is a marketing fee and it doesn’t add any value to the investment’s value. Investments that charge 12b-1 fee cost significantly more than those that don’t charge this fee. 

However, the performance of the investments that charge this fee isn’t any better than those that don’t charge this fee. So, you end up paying extra for no added benefit. 

The SEC had conducted a detailed study to compare the returns of the securities that charge this fee and those that don’t. It found that the ROI of the securities that charge 12b-1 fee were poorer because they cost more. 

Robert isn’t the only shady fiduciary who has such selfish provisions in his terms and conditions. There are plenty others who use such tactics to take advantage of investors. Take, Scot Benefiel Merrill Lynch, for example who also charges 12b-1 fees and trades recommended securities.

Robert Inbody Morgan Stanley Review: Conclusion

If you care about your financial security and don’t want to get taken advantage of, it would be wise to avoid doing business with Robert Inbody Morgan Stanley. The provisions in his terms and conditions are made to trap unsuspecting investors into a damaging agreement. 

You should find an independent financial advisor who doesn’t “sell” investments for commission.

2.6Expert Score
A Nightmare

Robert Inbody of Morgan Stanley has faced multiple lawsuits from his clients alleging misrepresentation and breach of fiduciary duty. On top of that, his current terms and conditions create unfavorable situations for the investors. Hence, you should avoid this advisor at all costs.

Trust
2
Service
2.5
Experience
3
Concern for Clients
3
Pros
  • None
Cons
  • Faced multiple lawsuits from clients
  • Uses clients' funds for personal profits
  • Charges a redundant fee
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