Morgan Stanley Accused Of Unauthorized Removal Of Customer Funds
David Wayne Kraft of Palm Beach Gardens Florida a stockbroker formerly registered with Morgan Stanley is the subject of a customer initiated investment related written complaint on March 30, 2020 in which the customer requested $1,201,922.12 in damages supported by allegations of the unauthorized “removal” of funds from the customer’s account during the time that Kraft was employed by Morgan Stanley.
Kraft has been referenced in four more customer initiated investment related disputes containing accusations of his violative conduct while employed by Morgan Stanley Smith Barney, Wachovia Securities and Morgan Keegan Company Inc. Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that a customer filed an investment related complaint involving Kraft’s activities where the customer sought $71,858.00 in damages supported by allegations that unauthorized transactions were effected in the customer’s account and that mutual funds failed to be suitable for the Wachovia customer.
Kraft is referenced in another customer initiated investment related written complaint in which the customer requested $90,000.00 in damages based upon accusations that closed end fund transactions were not suitable for the Morgan Keegan customer and had been executed without the customer’s knowledge or consent.
Another customer initiated investment related complaint involving Kraft’s conduct was settled for $40,000.00 in damages supported by allegations of misrepresentations by the stockbroker with respect to mutual funds for the customer’s Morgan Stanley Smith Barney account. Kraft is also identified in a customer initiated investment related written complaint on March 30, 3020 where the customer sought $716,528.06 in damages supported by accusations of Kraft’s unauthorized transactions.
FINRA Public Disclosure also confirms that Kraft has been barred from associating with any FINRA member in any capacity founded on allegations of his failure to provide FINRA with information that was requested of him. Case No. 2019062268801 (Nov. 4, 2019). Kraft’s failure to cooperate initially resulted in FINRA’s issuance of a Notice of Suspension on July 31, 2019 and then a Suspension from Association letter on August 26, 2019. The stockbroker had time to comply with FINRA’s requests but he failed to do so by the regulator’s November 3, 2019 deadline.
Kraft’s registration with Morgan Stanley was terminated on April 1, 2019.