Martin Erzinger, the Morgan Stanley Smith Barney wealth adviser involved in a hit-and-run, now has an updated disclosure filed with the Financial Industry Regulatory Authority, detailing the disposition of the felony charge filed against him.
FINRA rules require firms to report felony charges against their registered associates within 30 days. Erzinger was charged with a felony on Aug. 10, but this wasn’t disclosed to FINRA until Dec. 22. And then, Erzinger’s victim challenged the filing as insufficient.
Attorney Harold Haddon, who represents the bicyclist Erzinger ran down in Vail on July 3, filed a motion in a Colorado court calling the U4 “misleading.”
Morgan Stanley spokesman James Wiggins said Morgan Stanley believed it had met all of its reporting responsibilities. He declined to comment on the updated U4 filing.
On Jan. 11, Erzinger’s Form U4 was updated to the satisfaction of Haddon’s client, Dr. Steven Milo of New York, as well as Milo’s father-in- law, Tom Marsico, a star money manager and founder of Denver-based Marsico Funds, Haddon said.
Marsico complained in court that Erzinger had dodged disclosing the felony on his U4 the same way he tried to skip out on the accident. Marsico also blamed Morgan Stanley for the lack of disclosure.
A regulatory authority spokeswoman said the regulator is reviewing the case.
Erzinger’s U4 now says: “The felony charge was dismissed; the individual pled guilty to the two misdemeanor charges of careless driving resulting in injury and leaving the scene of an accident . . .”
It also recounts Erzinger’s sentence, which includes a year on probation, with no driving privileges, and a suspended 90-day jail sentence in lieu of community service.
Erzinger struck Milo while driving his new Mercedes and then fled the scene. He argued he was a victim of undiagnosed sleep apnea and that when he woke up in a culvert, he didn’t realize he’d hit anyone, so he drove away.
His plea bargain to misdemeanors with suspended jail time drew outrage from bicyclists and bloggers, with many suggesting he got a deal because of his wealth. Erzinger oversees more than $1 billion in accounts.