In an arbitration settlement, Morgan Stanley paid $19,000 to an investor even after he made threatening remarks to one of the firm's brokers, according to Dow Jones Newswires.

Douglas Norman, a 62-year-old retired California corrections officer, threatened to kill both his broker, David C. Mielke, and the broker's lawyer, Tait Graves, for allegedly damaging his $65,000 portfolio during the bear market by investing his money in risky technology stocks and mutual funds. In one instance, Norman made a threatening remark last September while a National Association of Securities Dealers arbitrator was listening in.

"I'd been burnt by a broker before," Norman said, when explaining why he became agitated and made the calls last September. "I told [Mielke] how I could pierce his eardrum with a bullet from far away, that's how good a shot I am. I was just having fun, but they took me seriously." Norman said he also told Graves that he "would be digging his own" after he was through with him.

Norman did not deny making the threats but said he didn't intend to carry them out. The settlement was concluded, with Norman receiving $19,000 and Mielke obtaining permission to erase the entire incident from his regulatory records. Morgan Stanley denied the investor's allegation that his funds were unwisely invested.

The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.

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