FINRA Sanctions Morgan Stanley Stockbroker For Selling Away
Christopher A. Reid of Marlton New Jersey a stockbroker formerly employed by Morgan Stanley has been fined $5,000.00 and suspended for four months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that Reid engaged in private securities transactions while registered with Morgan Stanley. Letter of Acceptance Waiver and Consent No. 2018059950301 (Aug. 10, 2020).
According to the AWC, on September 25, 2018, Morgan Stanley made FINRA aware that Reid had been terminated from the securities broker dealer during the time that his activities had been reviewed for possible unauthorized transactions at another securities broker dealer. FINRA commenced an investigation into the stockbroker following Morgan Stanley’s notification.
The AWC stated that on October 2017, an investor tried to establish a brokerage account at Morgan Stanley but the securities broker dealer denied the account. In June of 2018, the investor placed $100,000.00 into another securities broker dealer’s account instead. This account was controlled in part by Reid between July 2, 2018 and September 24 ,2018. Reid and that investor’s 200 options and equities trades caused the account to experience a 90 percent drop in value.
The AWC stated that the investor had been advised by Reid as to a trading strategy. Reid also made trades on his own in the investor’s account. Morgan Stanley was never apprised by Reid about his activities with the investor’s account. Reid’s private securities transactions were violative of FINRA Rules 2010 and 3280.
Reid was employed by Morgan Stanley between September 7, 2011 and September 18, 2018.