Investors who worked with former Morgan Stanley financial advisor Eric Kleiner are facing a growing list of concerns after a series of regulatory actions and significant customer disputes. In October 2025, Kleiner was officially barred from the securities industry for refusing to cooperate with a Financial Industry Regulatory Authority (FINRA) investigation into his termination from Morgan Stanley. The firm’s decision to discharge him was reportedly tied to his recommendation of unapproved, restricted investments—a practice often referred to as “selling away”.
If you or someone you know has suffered significant investment losses working with Eric Kleiner or another brokerage firm, don’t hesitate to reach out to Meyer Wilson Werning today. Our attorneys are experienced in securities fraud cases and will help to guide you through the process with a free consultation to determine whether your losses are the result of actionable misconduct.
The Eric Kleiner FINRA Bar: Why the Advisor Was Permanently Removed
The disciplinary action against Eric Kleiner (CRD#: 4135180 ) was finalized on October 31, 2025. According to Letter of Acceptance, Waiver, and Consent ( No. 2024084330501 ), Kleiner refused to provide documents and information requested by FINRA during its review of the circumstances surrounding his firing.
Important Points Regarding the Regulatory Findings:
- Violation of Rule 8210: FINRA found that Kleiner refused to produce information and documents necessary for its investigation.
- Violation of Rule 2010: By failing to cooperate, he failed to observe high standards of commercial honor.
- Permanent Sanction: Kleiner consented to a permanent bar from associating with any FINRA member firm in any capacity.
By refusing to participate in the investigation, Kleiner effectively prevented regulators from fully examining his conduct while at Morgan Stanley.
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Understanding the “Selling Away” Allegations at Morgan Stanley
On March 18, 2025, Morgan Stanley discharged Eric Kleiner after discovering multiple internal policy violations. The firm’s allegations are serious and point to potential risks for his former clients.
Alleged Misconduct Included:
- Recommendation of Restricted Investments: Allegedly advising clients to invest in products that were not approved by the firm.
- Failure to Disclose Conflicts: Allegedly failing to disclose his own personal investments in the products he recommended to customers.
- Data Security Violations: Allegedly using a personal device to engage in the unauthorized disclosure of confidential and internal firm information.
When an advisor recommends investments outside of their firm’s approved platform, they bypass the essential oversight and compliance checks designed to protect investors from fraud or unsuitable products.
Wave of Customer Disputes Totals Hundreds of Thousands in Claims
Since Kleiner’s termination, a series of customer disputes have been filed, several of which remain pending as of late 2025. These claims provide a window into the types of losses investors may be facing.
Timeline of Major Investor Claims:
- May 8, 2025: A claimant alleged that Kleiner recommended an unauthorized outside investment between September 2020 and March 2025, seeking $400,000.00 in damages.
- July 2, 2025: An investor alleged that Kleiner recommended an unauthorized outside investment from May 2018 to March 2025.
- October 27, 2025: A claim was filed alleging that Kleiner recommended unsuitable and unauthorized outside securities between 2018 and 2025.
- April 2025: Three separate disputes were filed involving allegations of unauthorized investment strategies or unsuitable account management.
Earlier in July 2023, a customer alleged that Kleiner’s recommendations to invest in cannabis securities were unsuitable, seeking $300,000.00 in damages. While that specific claim was denied, current filings suggest a broader pattern of “selling away” and unsuitability.
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Broker Obligations and Supervision Failures
With 25 years of experience in the industry, Eric Kleiner held registrations at Wells Fargo Advisors and Prudential Securities before joining Morgan Stanley in 2016. Investors who trusted him with their retirement or savings accounts should be aware of the following:
- Broker Obligations: Under Regulation Best Interest (Reg BI) , brokers must act in their clients’ best interests and have a “reasonable basis” to believe an investment strategy is appropriate for the client.
- Duty to Supervise: Brokerage firms like Morgan Stanley have a legal obligation to supervise their advisors and monitor for signs of “selling away” or unauthorized communication.
- Path to Recovery: Investors who suffered losses due to unauthorized or unsuitable investments often pursue recovery through arbitration . This process is generally faster and more streamlined than traditional court litigation.
If you believe your funds were moved into “off-platform” investments or that your risk profile was ignored, you may have a claim against the firm for negligent supervision.
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How Meyer Wilson Werning Helps Impacted Investors
Eric Kleiner is no longer a licensed broker, and his FINRA bar prevents him from managing securities accounts in the future. However, this regulatory action does not automatically return lost funds to affected investors.
At Meyer Wilson Werning , we represent individuals who have suffered losses due to firms failing in their duty to supervise. If you experienced losses tied to unsuitable recommendations or advisor misconduct at Morgan Stanley, we can help you pursue recovery through arbitration. Contact us today for a free consultation to discuss your situation and explore your path forward. Our team has decades of experience holding broker-dealers accountable when their systems and oversight fail to protect clients.
Frequently Asked Questions
What does the FINRA bar against Eric Kleiner mean for his former clients?
A permanent bar means Eric Kleiner can no longer associate with any FINRA member firm. For clients, this serves as a significant red flag that the advisor failed to comply with industry oversight, specifically regarding his termination from Morgan Stanley.
What is “selling away” and how does it affect my investments?
“Selling away” occurs when a broker recommends an investment that is not held or approved by their employing firm. These investments are inherently riskier because they lack the firm’s standard compliance review and insurance protections.
Can I recover money if my investment was “unauthorized” by Morgan Stanley?
Yes. If an advisor recommended investments that were not firm-approved, the brokerage firm may be held liable for failing to supervise the advisor’s activities and communication. Recovery is typically sought through arbitration.
Why did FINRA bar Kleiner for refusing to provide documents?
Under FINRA Rule 8210, brokers must cooperate with investigations. Refusing to provide requested documents is considered a serious breach of the rules because it prevents regulators from identifying and stopping potential investor harm.
Recovering Losses Caused by Investment Misconduct.
