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Barred Broker Antoine Souma to Pay Morgan Stanley Nearly $6.4 Million

May 10, 2023

Notice to Beverly Hills Investors: Losses with Antoine Souma? KlaymanToskes Has Recovery Options

National investment fraud lawyers KlaymanToskes continues its investigation of barred broker Antoine Nabih Souma (CRD# 4210987) after a panel of arbitrators decided that the former broker owes his former employer, Morgan Stanley, $6.4 million in compensatory damages. KlaymanToskes previously reported that Souma recently accepted an industry bar by FINRA in February 2023.

According to FINRA BrokerCheck, Souma was previously registered with Insigneo Securities from 2020 to 2022 in Beverly Hills, CA and with Morgan Stanley from 2016 to 2020 in Los Angeles, CA. Souma has also done business under Galliott Capital Advisors since April 2021 in Beverly Hills, CA and is purportedly still doing business as an investment advisor.

Investors that suffered losses at the advice of Antoine Souma should immediately contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lklayman@klaymantoskes.com for a free and confidential consultation to discuss legal options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you. 

Who is Antoine Souma?

Antoine Souma(CRD# 4210987) is a Beverly Hills, California-based investment advisor. The investor in a recent claim have accused Souma of engaging in excessive and unsuitable trading, improper exercise of discretion, and falsification of performance reports, among other securities violations.

Antoine Souma to Pay Morgan Stanley Nearly $6.4M in Clawback Fight

Beverly Hills, California-based investment advisor Antoine Souma has been ordered to pay his one-time employer Morgan Stanley nearly $6.4 million in compensatory damages related to two promissory notes the firm paid the former broker as recruitment compensation. According to the arbitration award, Morgan Stanley allegedly paid Souma millions in 2016 when the firm recruited him from J.P. Morgan Advisors (formerly J.P. Morgan Securities). 

When Morgan Stanley originally hired Souma, he was ranked 76th on Barron’s 2016 Top 100 Financial Advisors with $3 billion in assets under his team’s management. In August 2019, J.P. Morgan Securities paid $14 million to settle an investor complaint against Souma that alleged the firm failed to supervise the former broker. The investor involved in the claim alleged Souma engaged in excessive and unsuitable trading, improperly exercised discretion, and falsified performance reports, among other securities violations. 

On November 17, 2020, Morgan Stanley filed an action against Souma related to the breach of the promissory notes. On March 10th, 2022, Antoine Souma and Morgan Stanley entered into a settlement agreeing that Souma would pay the firm $7,865,991. Souma had allegedly made $1,475,000 in payments between then and January 25, 2023.

In January 2021 prior to the settlement, Souma had purportedly denied Morgan Stanley’s allegations and pursued a counterclaim against the firm, alleging defamation, promissory fraud, tortious and negligent interference with prospective economic advantage, breach of contract, and other allegations. The panel of arbitrators denied Souma’s counterclaims and ruled in favor of Morgan Stanley.

According to the award, a panel of three arbitrators awarded Morgan Stanley $6,390,991, which was the amount owed on the two promissory notes as of January 25th, 2023, at a per annum rate of 7% until the award is paid in full. Souma was also ordered to pay $7,500 in attorneys’ fees to Morgan Stanley.

Souma’s disciplinary history includes his receipt of an AWC from FINRA in November 2021 that suspended him from the securities industry for two months and fined him $20,000 in connection with findings that he had allegedly provided several customers with inaccurate and misleading account reports that misstated account values and performance. 

How Can I Recover My Losses?

KlaymanToskes has first-hand experience with Antoine Souma’s misconduct and is currently representing an aggrieved investor in a $2 million FINRA arbitration claim against Souma and Insigneo Securities (Case No. 22-01786).

The investor’s claim alleges that Souma engaged in misconduct and securities violations including excessive trading or “churning”, margin abuse, an unauthorized trading strategy, as well as inflating the investor’s risk profile and failing to disclose the trades to the investor. Affected investors are encouraged to learn more about Antoine Nabih Souma recovery options.

Investors that suffered losses with Antoine Nabih Souma may be entitled to a financial recovery. Contact Lawrence L. Klayman, Esq. immediately at (866) 460-4991 or lklayman@klaymantoskes.com to discuss your recovery options. Consultations are free and every case is taken on a contingency basis, meaning we do not collect attorney’s fees unless we are able to obtain a financial recovery for you.

About KlaymanToskes

KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.

Contact

KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com