FINRA Bars Morgan Stanley Broker For Failure To Cooperate
Kevin Peter Smith of Minneapolis Minnesota a stockbroker formerly registered with Morgan Stanley has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he failed to cooperate with FINRA’s investigation into accusations that Smith traded in a Morgan Stanley customer’s account without procuring the customer’s authorization. Letter of Acceptance Waiver and Consent No. 2016050705401 (Oct. 8, 2018).
According to the AWC, Smith was terminated from Morgan Stanley Smith Barney LLC on October 3, 2016 supported by allegations that he engaged in possible violative conduct as a trustee of a trust and executed discretionary trades without procuring the customer’s written authorization beforehand. The AWC revealed that the basis of Morgan Stanley’s termination of Smith became the foundation of FINRA’s investigation into Smith’s activities.
FINRA sent Smith a letter on September 28, 2018, according to Rule 8210, calling on Smith to provide recorded testimony for FINRA on October 15, 2018. The AWC stated that Smith was warned through FINRA’s letter that his failure to appear for testimony would be grounds for FINRA to possibly bar Smith in all capacities. FINRA stated that Smith responded to the regulator on October 1, 2018, where he indicated that he had received the request from FINRA for his testimony but would at no point be making an appearance for FINRA personnel. FINRA found that Smith’s failure to cooperate in the investigation was violative of FINRA Rules 2010 and 8210.
FINRA Public Disclosure reveals that on November 7, 2016, a customer initiated investment related complaint regarding Smith’s conduct was resolved for $57,944.89 in damages founded on accusations that misrepresentations had been made to the customer concerning two structured notes that had been purchased for the customer’s account.
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