Douglas Behnfield: $4.2mm Complaint Against Morgan Stanley Advisor

Boulder, Colorado financial advisor Douglas Behnfield (CRD# 840887) allegedly recommended an unsuitable investment strategy, according to a recent investor complaint. Financial Industry Regulatory Authority records show that he is registered as a broker and an investment advisor with Morgan Stanley.

Mr. Behnfield’s BrokerCheck report discloses multiple investor complaints. The most recent, filed in August 2026, alleges that as a representative of Morgan Stanley, he implemented and maintained an unsuitable investment strategy between June 2019 and August 2025. The pending complaint alleges damages of $4,200,000.

A second investor complaint, filed in August 1999, alleged that as a representative of Paine Webber, he made transactions that he did not discuss with the client. The complaint alleged unspecified damages and was denied by the firm.

For reference, FINRA’s suitability standard establishes that brokers must arrive at “a reasonable basis to believe” that their investment recommendations are appropriate for a client’s profile. As laid out in FINRA Rule 2111, the standard requires brokers to ascertain an investment’s suitability through “reasonable diligence” into the client’s investment goals, age, net worth, risk tolerance, income, and other factors. They must form 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.” Brokers who recommend unsuitable investments or strategies may be held liable for damages.

According to the Financial Industry Regulatory Authority, Douglas Behnfield holds 48 years of securities industry experience. Based in Boulder, Colorado, he has been registered as a broker and an investment advisor with Morgan Stanley since 2019. His past registrations include UBS Financial Services, Merrill Lynch, and Painewebber. His credentials include the passage of six securities industry qualifying exams: the Securities Industry Essentials Examination, or SIE; the Futures Managed Funds Examination, or Series 31; the General Securities Representative Examination, or Series 7; the National Commodity Futures Examination, or Series 3; the Uniform Investment Adviser Law Examination, or Series 65; and the Uniform Securities Agent State Law Examination, or Series 63. He holds 25 state licenses. (Information current as of October 12, 2026.)

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