Michael Sullivan: Options Complaint Against Morgan Stanley Advisor

A recent investor complaint against San Mateo, California financial advisor Michael Sullivan (CRD# 6546863) alleges that his advice resulted in damages. Financial Industry Regulatory Authority records show that he is registered as a broker and an investment advisor with Morgan Stanley.

Mr. Sullivan’s BrokerCheck report discloses one investor complaint. Filed in April 2026, it alleges that as a representative of Morgan Stanley, he misrepresented and recommended an unsuitable covered call options strategy in 2025. The pending complaint alleges unspecified damages.

FINRA’s suitability standard requires stockbrokers to “have a reasonable basis to believe” that the investments they recommend to their clients are appropriate for those clients’ objectives and background. As FINRA Rule 2111 explains, brokers must ascertain an investment’s suitability by conducting “reasonable diligence” into the investor’s profile, which includes their financial situation, age, risk tolerance, and other factors. Not only must they form a reasonable basis to believe the recommendation is suitable for at least some investors, they must form a reasonable basis to believe it is suitable for the specific investor they’re recommending it to. Representatives who recommend unsuitable investments may be held liable in the event of losses.

Investors should also be aware that the “misrepresentation” of material facts regarding investments is forbidden by industry standards FINRA Rule 2020, which states that no broker shall “effect any transaction in, or induce the purchase or sale of, any security by means of any manipulative, deceptive or other fraudulent device or contrivance.” Brokers who misrepresent information regarding their investment recommendations may be held liable for damages in the event of losses.

According to the Financial Industry Regulatory Authority, Michael Sullivan holds 10 years of securities industry experience. Based in San Mateo, California, he has been registered as a broker and an investment advisor with Morgan Stanley since 2015. His credentials include the passage of four securities industry qualifying exams: the Securities Industry Essentials Examination, or SIE; the Uniform Combined State Law Examination, or Series 66; the General Securities Representative Examination, or Series 7; and the National Commodity Futures Examination, or Series 3. He holds 39 state licenses. (Information current as of May 19, 2026.)

Carlson Law represents investors throughout the United States in claims against financial advisors and investment firms. If you or a loved one have suffered investment losses, please call us at 888-976-6111 or complete our contact form for a free and confidential consultation.