Theodore William Byrer (CRD# 2980696), a former Morgan Stanley broker, accepted a 14-month FINRA suspension on July 23, 2026. The penalty stems from an options strategy that cost four retail customers roughly $760,000 and generated more than $279,000 in commissions. FINRA found the Indiana broker willfully violated Regulation Best Interest, a finding that carries statutory disqualification.
What FINRA found in the Ted Byrer case
Between June 2020 and November 2022, Byrer recommended a speculative options strategy to four retail customers, two married couples. The strategy involved repeated purchases of uncovered, out-of-the-money put options on equity index funds the customers did not own.
Byrer presented the strategy as a hedge against a market downturn. Over time, he recommended puts that were further out-of-the-money, closer to expiration, larger in size, and more frequent, according to FINRA’s settlement.
Many of the options expired within days. They would only have produced gains if the underlying index fund fell by as much as 10 percent in that window.
The losses Byrer’s customers suffered
One couple had a capital appreciation objective, a moderate risk tolerance, and plans to retire in 2026. More than 180 recommended put-option trades produced almost $400,000 in losses and generated more than $62,000 in commissions for the broker’s firm.
A second couple lost over $360,000 across more than 380 options trades. That account generated more than $217,000 in commissions and carried an annualized cost-to-equity ratio near 68.8 percent, far beyond the level FINRA considers excessive trading.
| Metric | Finding |
| Options trades recommended | 560 or more |
| Combined customer losses | Approximately $760,000 |
| Commissions generated | More than $279,000 |
| Cost-to-equity ratio, one account | About 68.8 percent annualized |
| Regulation Best Interest violation | Willful |
| Fine imposed | None, citing bankruptcy filing |
| Suspension period | July 23, 2026 to September 22, 2027 |
| Statutory disqualification | Yes |
Record-keeping and supervision breakdowns
FINRA’s findings went beyond the trading itself. The regulator found that Byrer exercised discretion in at least 600 options trades across four customer accounts without prior written authorization, violating FINRA Rule 3260.
After Morgan Stanley directed him in December 2020 to stop recommending options trades to one customer who had suffered significant losses, Byrer kept trading. He mismarked 129 solicited options trades as unsolicited to conceal the recommendations.
He also made 36 false entries in Morgan Stanley’s customer contact system and answered annual compliance questionnaires inaccurately about his use of discretion.
Off-channel communications compounded the record. Byrer exchanged more than 750 business-related text messages from his personal phone, including a September 2020 message suggesting an investment could double by February.
Morgan Stanley settlements and termination
Morgan Stanley terminated Byrer in April 2023 over allegations that he entered transactions without receiving verbal confirmation and used unapproved communication channels. The firm later paid $312,500 to settle three customer disputes from 2023 and 2024 that included unauthorized trading and unsuitability allegations.
Individual settlements disclosed on his record include $215,000 in February 2024, $77,500 in September 2023, and $20,000 in September 2023. Settlements are not admissions of wrongdoing.
Byrer entered the securities industry in 1998 and moved through PFS Investments, A.G. Edwards, Raymond James, and Morgan Stanley before joining International Assets Advisory in May 2023. His brokerage registration ended in September 2024. His BrokerCheck report now lists eight disclosure events.
What affected investors can do now
Investors who traded options with Byrer at Morgan Stanley or International Assets Advisory can pursue recovery through FINRA arbitration. Claims may name the broker and the firm, because FINRA Rule 3110 requires brokerages to supervise representatives and review for excessive options activity.
FINRA arbitration claims are generally subject to a six-year eligibility window from the events at issue. Investors should gather account statements, trade confirmations, and any text messages exchanged with Byrer.
Frequently asked questions about Ted Byrer
Who is Ted Byrer?
Theodore William Byrer (CRD# 2980696) is a Westfield, Indiana broker who spent nearly a decade at Morgan Stanley in Indianapolis before joining International Assets Advisory.
How long is Ted Byrer suspended?
FINRA suspended Byrer for 14 months, from July 23, 2026 through September 22, 2027. He is not currently registered with any firm.
Can investors recover losses from Ted Byrer’s options trading?
Customers who suffered losses can file FINRA arbitration claims. Morgan Stanley already paid $312,500 to settle three disputes tied to Byrer’s conduct.
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This article is for informational purposes only and does not constitute legal advice. Case details are drawn from public FINRA disciplinary documents, including AWC No. 2023078559701 and BrokerCheck records.
