Morgan Stanley sued over James Brown’s estate

by Gill Montia

Story link: Morgan Stanley sued over James Brown’s estate

Wall Street investment bank, Morgan Stanley, is facing a law suit over the management of the estate of soul artist, James Brown.

The trustees of Mr Brown’s estate are accusing the bank of being complicit in allowing David Cannon, a previous manager of Mr Brown’s finances, to steal up to $12 million over the ten years prior to the singer’s death in 2006.

The investment managed by Morgan Stanley was intended to produce $1.1 million a year for Mr Brown’s personal use.

The trustees bringing the action allege that Mr Cannon withdrew $6.7 million from the fund between 2000 and 2002, of which $4.2 million passed indirectly to Mr Cannon.

The plaintiffs are accusing Joseph Lizzio, a Morgan Stanley employee of having failed to check the validity of the withdrawals made by Mr Cannon over this period.

So far, the singer’s estate has produced a large number of law suits, mostly involving his children, ex-wives and partners.