Morgan Stanley in The Villages is facing a $2.4 million arbitration award for allegedly defaming a former broker at the firm.
Dale Cebert had been a representative at the investment firm but was terminated in 2014.
An attorney for Cebert argued that Morgan Stanley lured Cebert to the firm with a bonus in 2012, but had intended to fire him and keep his clients. At the time, Cebert Wealth Management handled about $520 million for clients.
An arbitration panel found that Morgan Stanley managers conducted a “flawed internal investigation that was conducted, acted upon, and reported with reckless disregard for its accuracy and completeness.”