Morgan Stanley Brokerage Executive Departs Following Harassment Claims in Branches He Managed

By Liz Hoffman

A Morgan Stanley executive overseeing brokers who catered to celebrities left the firm this week after several employees claimed harassment at branches he managed in Los Angeles.

A spokesman for the firm confirmed the departure of Robert Perry, who had been at Morgan Stanley's brokerage and a predecessor firm since 1993.

Mr. Perry ran four brokerage branches in Los Angeles that are among Morgan Stanley's most lucrative, overseeing more than 125 brokers whose clients have included Elon Musk and pop star Katy Perry, according to people familiar with the matter.

Mr. Perry couldn't be reached for comment.

At least four women have filed lawsuits or engaged in private-arbitration proceedings over the past year and a half claiming sexual harassment, workplace hostilities and poor management at branches Mr. Perry oversaw, according to court records and people familiar with the matter. The suits say the firm ignored problems and, in some cases, transferred affected employees to other offices.

Mr. Perry isn't accused of harassment himself. He left the firm after an investigation by Morgan Stanley into his behavior and management style, according to people familiar with the matter.

Mr. Perry is named as a defendant in one employee lawsuit, from 2017, that says he failed to investigate when a trainee told him that a broker she had been involved in a relationship with cut off her access to client files.

Mr. Perry took a leave of absence from the firm earlier this year and later returned, people familiar with the matter said.

Morgan Stanley has 600 brokerage branches around the country and they produce about 45% of the firm's revenue. Wealth management is the centerpiece of Chief Executive James Gorman's turnaround plan for the firm, an effort that has revived Morgan Stanley's fortunes.

In one Los Angeles branch overseen by Mr. Perry, a Morgan Stanley employee had a glass of water poured on her head by a broker in full view of the office, according to a court filing from another employee.

An employee, Ivy Xiao, said in a separate lawsuit that one of her managers put his hand under her skirt and another asked her to send him explicit pictures. When she refused, he took her off client accounts they shared, she said; she was later transferred to another Morgan Stanley office.

Write to Liz Hoffman at liz.hoffman@wsj.com

(END) Dow Jones Newswires

July 11, 2018 10:56 ET (14:56 GMT)

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