The MPW Group Morgan Stanley – Unreliable & Greedy (Updated 2023)

The MPW Group Morgan Stanley is a financial advisory firm in Illinois that uses unethical tactics to make more money. It tries to trap investors in damaging agreements by hiding its terrible clauses in the fine print. 

Before you trust them with your investments and financial future, it would be best to check these unethical tactics and predatory disclosures. This way, you can make a well-informed decision on whether you should trust them or not: 

About the MPW Group Morgan Stanley

The MPW Group Morgan Stanley is a financial advisory firm in Oak Brook, Illinois. Their address is 2211 York Rd Ste 100, Oak Brook, IL 60523, US, and their contact number is 630-573-9694. The firm claims to help its clients achieve all of their retirement and investing goals. 

They also invest their clients’ funds as if they were their own. The firm claims to understand its clients’ requirements thoroughly and provide them with the necessary financial coaching. 

They offer various services at this firm including UGMA/UTMA, 401(k) rollovers, stock option plans, retirement planning, wealth management, trust accounts, and wealth planning. 

Did You Know?

UGMA/UTMA (Uniform Gifts to Minors Act/Uniform Transfers to Minors Act) are Custodial accounts created under a state’s law. The primary function of the accounts is to hold gifts or transfers received by a minor.

The two managing directors of this firm are Scott Magnesen and Malcolm Proudfoot. Other notable people at this firm include Lance Walker, Jennifer Magnesen, Brett Proudfoot, and Ryan Magnesen. 

While this firm claims to make many attractive claims about how much it cares about its clients, its disclosures tell an entirely different story. According to their disclosures, the MPW Group Morgan Stanley profits by ignoring its clients’ interests. They charge hidden fees and use their clients’ funds for generating profits for themselves. 

The next section of this review will help you understand their unethical practices in detail: 

Red Flags in the MPW Group Morgan Stanley You Must Know

Questionable Leadership

Before you start working with any financial advisor, it’s best to check their FINRA BrokerCheck listing. There, you’ll learn about their experience, previous and current employer(s), the exams they have passed, and most importantly, the disputes they have had. 

According to the FINRA BrokerCheck listing of Scott Magenesen, he had one legal dispute with a client. It occurred in 2004. 

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The client alleged that he made unsuitable recommendations and the good faith estimate was over $5,000. Scott’s firm denied the allegation. 

However, they haven’t specified on what grounds they rejected the complaint. Furthermore, there’s no information on how much the claimant had requested specifically. The disclosure only says that they requested an amount over $5,000. 

Note that it’s quite rare for such disputes to end in the client’s favor. Another advisor who got away with such disputes is Daryn Pingleton Merrill Lynch. Such advisors hide their shady provisions in the fine print of their terms and conditions. 

Charging 12b-1 Fees

A huge issue with the MPW Group Morgan Stanley is that it recommends investments that charge 12b-1 fees. This is a marketing fee that companies pay brokers to promote their investments. The 12b-1 fee increases the investment cost of security without offering anything in return. 

According to an SEC study, the returns of the investments charging 12b-1 fees are the same as the investments that don’t charge this fee. This means investments that charge 12b-1 fees offer a worse ROI in comparison to the investments that don’t charge this fee. 

That’s not all. 

The 12b-1 fee is a percentage fee. So, how much you pay in 12b-1 fees depends on the size of your portfolio. This is a particularly huge con for investors who have substantial portfolios. Also, this fee compounds over time, making it detrimental for portfolios that want long-term growth.

Furthermore, this single fee allows the advisor to charge as many hidden fees as they want. If you know for certain that your advisor doesn’t care about his profits, only then you can assume that he doesn’t charge you hidden fees through 12b-1 fees. 

The 12b-1 fee is terrible for all kinds of investors. Hence, you should avoid it at all costs. 

Using Clients’ Funds for Personal Gains

The MPW Group Morgan Stanley trades the investments it recommends to its clients. This allows the firm to use its clients’ funds to manipulate the returns of its investments. 

While some may view it as “eating your cooking”, it gives the broker leeway to abuse their client’s portfolios. Many advisors who trade recommended securities may perform ‘front-running’, a highly notorious practice. 

In front-running, an advisor trades a specific investment and then recommends it to his clients afterward. It’s an unethical practice that you should be extremely cautious of while working with this broker firm. 

Conclusion

If you’re looking for wealth advisory services, the MPW Group Morgan Stanley is not the best option available. They have too many red flags to count.

From charging hidden fees to using their clients’ funds for generating personal profits, they do everything wrong. It would be best to avoid this firm and find someone else. 

2.8Expert Score
Unreliable

The MPW Group Morgan Stanley is a terrible wealth advisory firm, according to its past and current disclosures. It would be best to stick with other options present in the market because these guys would put your finances at risk for their profits.

Trust
2.5
Experience
3
Service
3
Concern for Clients
2.5
Pros
  • None
Cons
  • Unreliable leadership
  • Charging 12b-1 fees
  • Using clients' funds for personal gains

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