The Elwaw Cavalieri Group Morgan Stanley is a Firm to Avoid

The Elwaw Cavalieri Group Morgan Stanley is a terrible financial advisory firm in Miami. It has multiple red flags that it tries to hide from its clients. 

However, as an investor, it’s your right to know about these issues. The following review will shed light on these issues so you can make a better-informed decision about this firm.

About the Elwaw Cavalieri Group Morgan Stanley

The Elwaw Cavalieri Group Morgan Stanley is a financial consultancy firm based in Miami, Florida. Their address is 200 S Biscayne Blvd Ste 1100, Miami, FL 33131, US. Similarly, their contact number is 305-376-8560. 

This firm has two managing directors, John Elwaw and Matias Cavalieri. Other notable people at this firm include Ricardo Rojas and Daniel Devis. 

The Elwaw Cavalieri Group Morgan Stanley offers its services to affluent individuals and families. They claim to create highly customized investment strategies for their clients. The firm also claims to offer high-quality wealth management advice that helps them meet their financial goals. 

Some of the many services available here are estate planning strategies, wealth planning, professional portfolio management, philanthropic management, cash management, lending products, and sustainable investing. 

Before you trust these sugar-coated claims, it would be best if you looked at the predatory provisions present in their disclosures. This would help you understand how empty these claims are and why you should be extremely wary of this firm. 

The Disputes and Predatory Provisions of the Elwaw Cavalieri Group Morgan Stanley

Before you consider working with a financial advisor, you should look them up on FINRA BrokerCheck. This is a vast database where you can learn about your advisor’s professional experience, the state licenses they possess, the exams they have passed, their past employers, and most importantly, the disputes they have faced. 

Juan Elwaw’s FINRA BrokerCheck profile shows one legal dispute. It occurred in 2002. Here, the client alleged that Juan failed to follow her mother’s instructions regarding the transfer of funds causing her to incur a tax liability in 1999. 

She requested $250,000 in damages and settled the case for $110,000. Juan pointed out that the mistake wasn’t his and called it an operational problem of tax forms. 

Still, facing a $250,000 dispute is no small matter. It shows that Juan Elwaw isn’t as reliable as he claims to be. 

Charging Performance-based Fees

The biggest issue with this firm is that it charges performance-based fees. This means the firm earns money when it outperforms a specific benchmark. It might seem like an excellent fee structure on paper but it is highly dangerous for nearly 90% of portfolios. 

The performance-based fee structure incentivizes the advisor to ignore your risk tolerance. Such advisors tend to implement high-risk strategies, which allow them to outperform the benchmark in the short term. 

However, high-risk strategies tend to fail in most cases, generating poor or negative (losses) returns for the investors. Research shows that advisors who follow this fee structure tend to double down on the risk and produce terrible returns for their clients. 

Furthermore, it puts you in a detrimental position. If you suffer losses because of the high-risk strategies of your advisor, you can’t hold him liable. On the other hand, the advisor can charge you hefty fees if you get any positive returns. 

Performance-based fees are particularly damaging to large portfolios with low risk tolerance. Avoid this fee structure at all costs. 

Selling Proprietary and Affiliated Products

Another prominent problem in the Elwaw Cavalieri Group Morgan Stanley is that it sells proprietary and affiliated products. This leads to various conflicts of interest and is never a good thing for the investor.

Selling proprietary investment products restricts the selection of recommendations an advisor can give to his clients. You get less variety and number of options to choose from. 

Proprietary investments generate substantially higher commissions for an advisor. So, they have monetary incentive for ignoring all non-proprietary investments regardless of their suitability for your portfolio.

This means you have a higher chance of getting subpar and poor recommendations from your advisor if they earn commissions from the sale of proprietary products. 

It’s among the biggest reasons why advisors give unsuitable advice to their clients. Just recently, UBS Financial Services faced multiple lawsuits from its clients because its advisors recommended a proprietary product without checking its suitability. The product offered high commissions for the advisors but caused the clients to lose millions.

A lot of revenue of the Elwaw Cavalieri Group comes from the sale of proprietary products so beware. 

Conclusion

After checking its predatory provisions and its history of legal disputes, it’s obvious that the Elwaw Cavalieri Group isn’t as great as it claims to be. The firm has monetary incentive for ignoring its clients’ interests and has a history of doing so. Furthermore, the firm has incentive for making unsuitable recommendations. 

You should stay miles away from such a firm. Find a different wealth advisor in Miami. 

2.8Expert Score
Avoid the Elwaw/Cavalieri Group

The Elwaw Cavalieri Group Morgan Stanley is an unsuitable wealth advisory firm for most investors. They have greedy provisions in their terms and conditions which put their clients in compromising positions, particularly in the long term.

Trust
2.5
Experience
2.5
Service
3.5
Concern for Clients
2.5
Pros
  • None
Cons
  • Faced a $250,000 lawsuit
  • Charging performance-based fees
  • Selling investments
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