FINRA Nails Morgan Stanley Stockbroker For Lying
Gregory Scott Taylor of Dallas Texas a stockbroker formerly employed by Morgan Stanley Smith Barney has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon an Order Accepting Offer of Settlement containing findings that Taylor: (1) failed to disclose information about being a beneficiary, power of attorney and executor of a customer’s account (2) violated the firm’s policies through receiving a customer’s funds and (3) lied about his activities when questioned on the firm’s compliance questionnaire. Department of Enforcement v. Gregory Scott Taylor No. 2014040523101 (Aug. 4, 2016).
According to the Order, while Taylor was associated with Morgan Stanley Smith Barney, Taylor engaged in unethical activities concerning a seventy-five-year-old widow, BG. Apparently, Taylor began servicing customer BG’s account in April of 2013, two years after the customer’s husband died. Apparently, Taylor established a closer relationship with BG after learning of her being a widow. The Order stated Taylor proceeded to make visits to the customer’s home and engaged in unethical activities without ever having informed Morgan Stanley about them.
Apparently, throughout the time that BG was a customer of the firm, Taylor had been named as a beneficiary of the customers $60,000.00 in funds, appointed executor of a customer’s $2,000,000.00 estate, and appointed as an agent for the customer in the event of the customer’s incapacitation. The Order stated that Taylor neglected to inform Morgan Stanley during this period that he was beneficiary, executor and power of attorney. Consequently, FINRA found that Taylor’s conduct was violative of FINRA Rule 2010.
The Order stated that the firm’s procedures and policies disallowed Taylor from taking possession of a customer’s funds. Additionally, Taylor was issued a compliance questionnaire during the period in which he accepted funds from a customer. Taylor reportedly made false attestations about receiving funds from BG; conduct violative of FINRA Rule 2010.
FINRA Public Disclosure additionally confirms that a customer filed an investment related arbitration claim concerning Taylor’s conduct in which the customer sought unspecified damages supported by accusations that Taylor, among other things, engaged in elder abuse by manipulating the customer into making changes to the customer’s will and leaving Taylor all of the customer’s estate. FINRA Arbitration No. 18-03918 (Nov. 14, 2018).
Taylor was discharged by Morgan Stanley on March 21, 2014 founded on allegations that Taylor violated the firm’s policies by having been named in his various capacities by the customer; conduct which was prohibited and never made known to the firm by Taylor.