Consumer complaint received 2025-10-17 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: MORGAN STANLEY & CO. LLC
State: CA

Complaint narrative:
I am currently being targeted and victimized by an anonymous E * TRADE Morgan Stanley case manager, whose name no one will provide, and who seems intent on causing me financial harm. There is no logic or valid justification for the case managers extreme actions. 

On XX/XX/XXXX this anonymous case manager, without valid cause, froze 5 of my accounts ( 2 checking accounts, 1 savings account, and 2 IRA accounts ), seizing control of approximately {$430000.00} in assets. The frozen checking and savings accounts hold my Social Security direct deposits and the money I require each month to pay my expenses. On XX/XX/XXXX, an E * TRADE Account Activation team member confirmed that the anonymous case manager seized control of my assets because, in XXXX, I had noticed and reported {$120.00} of unauthorized merchant withdrawals from my checking account. There is nothing about that event that makes freezing five of my accounts and depriving me of {$430000.00} of my assets, proportionate, logical, or reasonable. The case managers actions are extreme and damaging, and show callous disregard for the harm those actions cause me.

I also have a letter from E * TRADE and Morgan Stanley Private Bank, dated XX/XX/XXXX, where I am informed that the investigation into the unauthorized withdrawals had been completed and that the investigators agreed the {$120.00} should be refunded to my account, which they did on XX/XX/XXXX. 

However, despite the investigation having been completed on XX/XX/XXXX, the anonymous case manager has repeatedly refused to restore access to my funds, and has, as of the date of this complaint, refused to talk to me or communicate with me.

The case manager is even denying me access to my Social Security direct deposits, which is a violation of Social Security and U.S. Treasury regulations. The case manager also appears to have blocked the direct deposit of my XX/XX/XXXX Social Security payment from the U.S. Treasury, since the deposit transaction is not listed in the account.

-- -- -- -- -- -- -- -- -- I have spoken to E * TRADE Account Activation representatives about these issues on multiple occasions. 

XX/XX/XXXX I noticed two small unauthorized merchant withdrawals had been processed against my checking account. {$74.00} on XX/XX/XXXX and {$54.00} on XX/XX/XXXX. I immediately called E * TRADE to report the unauthorized withdrawals. An agent took the report and encouraged me to open a replacement checking account, which I created and funded immediately. Except for Social Security requiring 3 months to change the direct deposit destination account, I believed the issue was fully resolved. 

XX/XX/XXXX I returned from vacation and discovered that five of my accounts had been wrongfully frozen since XX/XX/XXXX. This deprived me of access to my checking, savings, both IRAs, and approximately {$430000.00} in combined assets. I require access to my checking and savings accounts to pay my monthly expenses, so this was financially devastating. I spoke with an E * TRADE Account Activation representative who walked me through the requirements to lift the freeze. At the end of the call, he assured me I had met all requirements to have the restrictions lifted from my accounts. Since the freeze was causing me harm, he escalated the issue to his manager. Despite those assurances and the escalation, the anonymous case manager refused to lift the freeze. 

XX/XX/XXXX I spoke with another Account Activation representative who also assured me I had met all requirements to lift the account restrictions. He promised to personally contact the case manager. Despite this second escalation, the case manager again refused to lift the freeze. 

XX/XX/XXXX ( morning ) Accounts still frozen. I spoke with another Account Activation representative, XXXX XXXX, who reviewed account notes and confirmed that the freeze had been placed on my accounts because I had notified E * TRADE in XXXX of the two small unauthorized merchant withdrawals from my checking account. XXXX XXXX listed several new requirements that the anonymous case manager had suddenly added, seemingly determined to avoid lifting the unwarranted freeze on my five accounts. The new requirements include demands for documents that dont exist, such as notarized affidavits and a police report. Since the local police dont involve themselves in issues of online fraud, they were baffled by the case managers demand and declined to open a police report. XXXX XXXX, like the previous Account Activation representative, said he would reach out directly to the anonymous case manager, but that I would just have to wait and hope for a call, which he said may require me to wait several more days. He would not provide me with the name of the case manager, and told me there is no way I can pursue this issue other than to wait and hope for a call. 

I also told XXXX XXXX that I intended to file complaints with regulators, so I needed him to provide the legal basis for the freeze, the duration of the freeze, internal and external communication records about the freeze, an explanation for why the freeze was not lifted despite having twice received verbal confirmations that I had met all requirements, and why my Social Security funds were being held without cause or court order. He declined to provide any of the requested information, telling me that I will have to request that information from the anonymous case managerif the case manager ever calls me. 

XX/XX/XXXX ( Evening ) I received a letter from E * TRADE and Morgan Stanley Private Bank, dated XX/XX/XXXX. The letter states that the investigation into the {$120.00} of unauthorized merchant withdrawals had been completed and that investigators determined the appropriate resolution was to credit the funds back to my account, which they did on XX/XX/XXXX. 

With receipt of the XX/XX/XXXX letter from E * TRADE Morgan Stanley, I now know that each time the anonymous case manager refused to lift the freeze, it was already known internally at E * TRADE that the investigation had completed. Nonetheless, the case manager refused to release my accounts, causing ongoing financial harm. I dont know if the case managers actions are actually criminal, but they demonstrate clear malfeasance. 

XX/XX/XXXX Accounts still frozen. Social Security deposit from U.S. Treasury rejected. Location of rejected Social Security funds unknown. This is an example of clear additional harm caused to me by this anonymous case manager. 

XX/XX/XXXX Accounts still frozen -- -- -- -- -- -- -- -- -- I have a property tax bill sitting in front of me, for my home, that I can not pay, because E * TRADE Morgan Stanleys anonymous case manager froze my property tax funds and refuses to unfreeze my accounts. The funds for my utility bills, credit card bills, and other routine expenses are also frozen. The case manager literally froze the money I use for food, and has wrongfully denied me access to my Social Security deposits.

The only people at E * TRADE from Morgan Stanley who will identify themselves and speak with me, admit they have no authority to actually help me, and they will not provide the names of anyone who can help me.

I saved diligently, for decades, to build my savings for retirement, and in 50+ years of banking, I have never before had a financial institution deprive me of my funds. The case managers actions are unjustified and have been incredibly stressful, disruptive, and harmful.

Please help restore full access to all of my accounts.

Thank you.

Company response to consumer: Closed with explanation