Ted Byrer Suspended by FINRA – Investors May Recover Losses
Ted Byrer Suspended by FINRA – Investors May Recover Losses
Call Goodman & Nekvasil, P.A. at 800-500-4442 if Ted Byrer recommended investments or options trading strategies for your account and you suffered significant losses.
Theodore William Byrer Investor Alert
THEODORE WILLIAM BYRER
TED BYRER
CRD#: 298069
Former Morgan Stanley financial advisor Theodore William Byrer (CRD# 2980696) has been suspended by FINRA for 14 months. Byrer accepted FINRA’s findings that he engaged in multiple violations involving options recommendations, discretionary trading, recordkeeping, and off-channel communications.
Investors who suffered losses while working with Theodore Byrer should consider having their accounts reviewed by the securities attorneys at Goodman & Nekvasil, P.A. to determine whether they may be entitled to recover losses through FINRA arbitration.
Ted Byrer Suspended by FINRA – Investors May Recover Losses
FINRA’s Findings
According to FINRA, Byrer’s conduct occurred between June 2020 and November 2022 and involved several categories of alleged misconduct.
Byrer accepted FINRA’s findings without admitting or denying them.
Allegedly Recommended Options Strategy That Was Not in Customers’ Best Interest
FINRA found that Byrer recommended a speculative options trading strategy involving repeated purchases of out-of-the-money put options. Four retail customers, including two married couples were recommended the speculative strategy, according to the AWC.
According to the AWC, the recommendations in one account, resulted in approximately $400,000 in options losses while generating more than $62,000 in commissions.
In another customer account, FINRA found that more than 380 options trades generated over $360,000 in losses and more than $217,000 in commissions, with an annualized cost-to-equity ratio of approximately 68.8%.
False Books and Records Allegations
The AWC states that after Morgan Stanley instructed Byrer to stop recommending options trades to a customer who had sustained significant losses, he allegedly continued recommending options transactions.
FINRA found that Byrer:
- Made 36 false entries in Morgan Stanley’s customer contact system.
- Mismarked 129 solicited options trades as “unsolicited.”
Unauthorized Discretionary Trading
FINRA also found that Byrer exercised discretion in at least 600 options trades across four customer accounts without obtaining prior written authorization from customers or written approval from Morgan Stanley.
According to the AWC, Byrer also inaccurately certified on annual compliance questionnaires that he was not exercising discretion in customer accounts.
Off-Channel Text Messages
FINRA further found that Byrer exchanged more than 750 business-related text messages with customers using his personal phone, preventing Morgan Stanley from preserving the communications as required by federal securities laws.
The AWC also states that some of these text messages allegedly contained promissory or unwarranted statements regarding expected investment performance and options recommendations without balanced risk disclosures.
FINRA Sanctions
As part of the settlement, Byrer accepted:
- A 14-month suspension from associating with any FINRA member in all capacities.
- A finding that he willfully violated Regulation Best Interest, making him subject to a statutory disqualification under the Securities Exchange Act.
- No monetary fine was imposed because Byrer had previously filed a Chapter 11 bankruptcy petition.
Morgan Stanley Termination
The AWC also notes that Morgan Stanley terminated Byrer’s employment in April 2023 after reporting concerns regarding entering transactions in clients’ accounts without receiving verbal confirmation immediately beforehand and engaging in off-platform written communications concerning firm business.
What Investors Should Know
Investors who purchased options or followed complex options strategies recommended by Theodore Byrer may wish to determine whether:
- The recommendations were suitable for their financial objectives.
- The investments complied with Regulation Best Interest.
- The risks of repeated options trading were fully explained.
- Their accounts became excessively concentrated in speculative options strategies.
- Unauthorized discretionary trading occurred.
Every investor’s situation is unique, and potential claims depend upon the specific facts of each recommendation.
Contact Goodman & Nekvasil, P.A.
If Theodore William Byrer managed your investment account or recommended options trading strategies that resulted in substantial losses, contact the securities attorneys at Goodman & Nekvasil, P.A.
Our firm is investigating potential claims on behalf of investors and can review your account to determine whether you may be entitled to recover losses through FINRA arbitration.
Call 800-500-4442 for a free, confidential consultation.
Some of the information in this blog post was obtained from FINRA on 7/24/26. If you believe this information was reported incorrectly, please contact our firm: 1-800-500-4442.