A wealth manager who had an affair with a client could cost the bank $400 million...

CommentsA high-flying Morgan Stanley investment adviser, Ami Forte, has the bank facing an enormous fine, a source says.

The fine would be the result of a lawsuit filed against the bank by the widow of a multimillionaire client.

The widow is Lynnda Speer, who was married to Roy Speer, cofounder of the Home Shopping Network. He died in 2012. Now Lynnda Speer says the bank overcharged her husband while he was alive.

To complicate matters, there is this: Roy Speer and Forte were having an affair. It started in 1998.
Details of the affair came out in a Financial Industry Regulatory Authority (FINRA) hearing taking place in Florida this month.


A source present at the FINRA hearing says Morgan Stanley could be on the hook for a $400 million loss: $100 million in compensatory damages, and an additional $300 million in punitive damages.
According to an earlier report, Morgan Stanley believed it might be on the hook for a lot less — only $170 million.
The reason the fine may end being bigger than expected is because of a state statue in Florida, the Florida Elder Exploitation Law. For more, goto yahoo.