Dan Becraft: $2mm Options Complaint Against Morgan Stanley Advisor

A recent investor complaint against Seattle, Washington financial advisor Dan Becraft (CRD# 2877734) alleges that his advice resulted in seven-figure damages. Financial Industry Regulatory Authority records show that he is registered as a broker and an investment advisor with Morgan Stanley.

Mr. Becraft’s BrokerCheck report discloses two investor complaints. The most recent, filed in February 2026, alleges that as a representative of Morgan Stanley, he recommended an unsuitable options trading strategy. The pending complaint alleges damages of $2 million.

An earlier investor complaint, filed in 2002, alleged that as a Merrill Lynch representative, he recommended unsuitable stock investments. The complaint alleged unspecified damages and was denied by the firm.

For reference, FINRA’s suitability standard holds that stockbrokers must “have a reasonable basis to believe” that the recommendations they make to their clients are appropriate for those clients’ background and needs. As laid out in FINRA Rule 2111 and later the SEC’s Regulation Best Interest, the standard requires brokers to ascertain an investment’s suitability through “reasonable diligence” into the client’s investment profile, which includes their age, net worth, risk tolerance, income, and more. They must arrive a reasonable basis to believe the recommendation is suitable for at least some investors, as well as a reasonable basis to believe it is suitable for the specific customer they’re dealing with. When they are considering a series of transactions in an account over which they have actual or de facto control, they must arrive at a reasonable basis to believe that the series of transactions, “even if suitable when viewed in isolation, is not excessive and unsuitable for the customer.”

According to the Financial Industry Regulatory Authority, Dan Becraft holds 28 years of securities industry experience. Based in Seattle, Washington, he has been registered as a broker and an investment advisor with Morgan Stanley since 2009. His past registrations include Citigroup Global Markets (2003-2009) and Merrill Lynch (1997-2003). His credentials include the passage of four securities industry qualifying exams: the Securities Industry Essentials Examination, or SIE; the Uniform Investment Adviser Law Examination, or Series 65; the Uniform Securities Agent State Law Examination, or Series 63; and the General Securities Representative Examination, or Series 7. He holds 45 state licenses. (Information current as of March 30, 2026.)

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