Despite allegations, Oregon financial adviser stays on the job
Published 12:00 am Thursday, March 29, 2018
- Greenberg
Over 15 years, four women in Lake Oswego sought police protection against the same man, court filings show.
“He threatened to burn down my house with me in it,” one woman wrote in her application for a restraining order. “I don’t know what he’s going to do next,” a second wrote. “He choked me so hard it left a mark on my throat,” wrote another. “He is scaring my children and me,” a fourth woman said.
Yet the man, Douglas Greenberg, remains one of Morgan Stanley’s top financial advisers — and a celebrated member of the wealth management industry.
For years, Morgan Stanley executives knew about his alleged conduct, according to seven former Morgan Stanley employees.
Morgan Stanley received a federal subpoena related to one abuse allegation, according to a lawyer for one of the women. In another instance, a Morgan Stanley manager alerted his superior when Greenberg was charged with violating a restraining order, according to three former employees. Another manager at the firm liked and replied to a Facebook post by one of Greenberg’s ex-wives in which she described his abuse.
On yet another occasion, an official from the bank’s New York headquarters flew to Portland to investigate, two former employees said.
Despite this information, Morgan Stanley apparently took no action against Greenberg. He is still an employee and a member of the elite “Chairman’s Club,” which recognizes brokers who are not only top producers but also meet certain “conduct and compliance standards.”
Greenberg is in the top 2 percent of brokers at the firm by revenue produced. Last month, he made a Forbes list of Oregon’s top wealth managers.
This week, after The New York Times contacted Morgan Stanley with questions about Greenberg, the bank put him on “administrative leave pending further review of this situation,” said a Morgan Stanley spokeswoman, Christy Jockle. “We are committed to maintaining a safe and professional work environment and will take appropriate action based on the facts of the matter.”
Reached on his cellphone this week, Greenberg said he had no comment.
Since claims of sexual harassment in the workplace ignited the #MeToo movement last year, companies have been struggling to handle accusations against star employees. Morgan Stanley has wrestled with the issue, too. Late last year, the bank fired a top investment banking executive, Harold Ford, after hearing accusations that he had engaged in misconduct. The bank later said Ford, a former Tennessee congressman, was not fired for sexual harassment. Ford has denied any wrongdoing.
None of the women Greenberg is said to have abused was employed by Morgan Stanley. But employees in the finance industry — especially those who manage money for clients — are judged in part on their character. Financial advisers like Greenberg have to share certain information about themselves publicly, under rules intended to help investors find trustworthy money managers. For example, brokers have to inform the Financial Industry Regulatory Authority, known as FINRA, if they declare bankruptcy or are charged with any felony or with a misdemeanor related to money.
But there is just as much information that does not have to be disclosed — and that means that people with checkered histories can continue to thrive in the industry.
On FINRA’s website, each broker’s history is displayed in a vertical timeline, with red dots marking the date of each trouble spot. There are five red dots on Greenberg’s timeline. They represent a 1984 charge, eventually dismissed, of theft by check; a 2001 charge of criminal mischief in the first degree, also dismissed; two disputes with clients; and a regulatory penalty.
But that record does not reveal Greenberg’s other run-ins with law enforcement and the judicial system, which are not required to be disclosed to FINRA.
In December 2006, Greenberg was charged with harassment and criminal mischief, according to court papers and a police blotter item in The Lake Oswego Review. He had violated a restraining order taken out by his ex-girlfriend, the second woman to ask for protection against him, according to the court papers. Greenberg eventually pleaded no contest to a misdemeanor charge of criminal trespass and agreed to limitations on his movements, according to a plea deal.
And eight years later, Greenberg was charged with violating another restraining order taken out by a different ex-girlfriend. The woman, Anne Cost, had obtained the order against Greenberg after, she said, he threatened to burn down her house. Now, she told police, Greenberg was menacing her again, trailing her in his car. “You could have placed a pizza box between her back bumper and Mr. Greenberg’s front bumper he was so close to her,” a Lake Oswego police officer, John Brent, wrote in his report of the incident.
After that September 2014 arrest, Greenberg’s mug shot appeared online in a report about the arrest. Morgan Stanley employees in Seattle and Portland shared it via text messages and emails, according to the seven former Morgan Stanley employees, most of whom said they did not want to be identified because they feared retribution by Greenberg or the bank.
“Everybody knew,” said Jani Beatty, a former vice president at Morgan Stanley’s private bank. She added, “I considered him my friend until I understood the full extent of his actions against his intimate partners.”
In June 2015, his second ex-wife, Traci Williams, wrote a series of Facebook posts that described her ex-husband’s alleged physical and verbal abuse. The posts did not name Greenberg, but there was little doubt about whom she was referring to. Her friends commented on the posts and criticized Greenberg by name. And a lawyer for Greenberg complained about the posts to Williams’ lawyer.
Among the commenters was Alex Burlingame, a Morgan Stanley manager in Seattle who had worked with Greenberg for years. He “liked” the post and added a personal message: “Hang in there, Traci! So sorry to see that one acts this way.”
That summer, Williams said she started receiving what she perceived to be threatening letters in the mail. She reported the harassment to the Portland Police, whose main suspect was Greenberg. The police eventually turned the case over to federal prosecutors, according to a July 2015 email. A spokesman for the U.S. attorney’s office declined to comment.