Morgan Stanley Stockbroker Sanctioned For Falsifying Documents

Clare Marie Cail (also known as Clare Marie McGovern) of Manchester New Hampshire a stockbroker formerly registered with Morgan Stanley has been fined $5,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that she altered customer account documentation. Letter of Acceptance Waiver and Consent No. 2019062856101 (Apr. 2, 2020).

According to the AWC, between December of 2018 and March of 2019, signed customer account documents had been improperly altered by Cail to include information that was previously missing from the documentation. The AWC stated that Morgan Stanley provided only two mechanisms by which the stockbroker could ascertain missing information from customers. With either mechanism, she was not permitted to alter documents after customers had signed them.

The AWC noted that when new account documentation of another securities broker dealer had been rejected, false new account forms were submitted by the stockbroker containing signatures that customers applied on prior documentation. The stockbroker apparently altered documents for purposes of establishing accounts and for effecting transactions.

The AWC stated that Cail caused Morgan Stanley to maintain inaccurate books. FINRA determined that the stockbroker’s alteration and falsification of account documentation was violative of FINRA Rules 2010 and 4511.

On May 15, 2019, Cail was discharged by Morgan Stanley based upon allegations of her alteration of customer documentation and her mishandling of records and books.