SEC Bars Morgan Stanley Stockbroker For Fraud

Michael Harvey Siva of Morristown New Jersey a stockbroker formerly registered with Morgan Stanley has been barred from being a stockbroker or an investment adviser representative or otherwise associating with any securities broker dealer or investment advisory according to a Securities Exchange Commission (SEC) Order based on Siva pleading guilty to conspiracy to commit securities fraud. In the Matter of Michael Harvey Siva Administrative Proceeding File No. 3-19579 (Oct. 8, 2019).

According to the Order, Siva pled guilty to conspiracy to commit securities fraud and tender offer fraud. United States v. Michael Siva et al. Criminal Action No. 17-cr-503-AJN (S.D.N.Y. Oct. 8, 2018). SEC also noted that Siva was permanently enjoined from violating securities laws including Securities Exchange Act of 1934 Section 10(b) and 14(e) as well as SEC Rule 10b-5 and 14e-3. Securities and Exchange Commission v. Daniel Rivas et al. Civil Action No. 17-cv-06192-VM (Sept. 23, 2019).

Financial Industry Regulatory Authority (FINRA) Public Disclosure indicates that Siva has been identified in four customer initiated investment related disputes pertaining to allegations of his misconduct while employed by Morgan Stanley. On January 3, 2018, a customer filed an investment related complaint regarding Siva’s conduct in which the customer requested unspecified damages supported by allegations that common and preferred stock transactions were effected in the customer’s account in an excessive manner from 2014 to 2017 while Siva was employed by Morgan Stanley.

Siva is the subject of another customer initiated investment related arbitration claim which was settled to resolve accusations of excessive equities trades being effected by Siva in the customer’s Morgan Stanley account between 2014 and 2017. FINRA Arbitration No. 18-00288 (Aug. 20, 2018). Siva is also referenced in a customer initiated investment related arbitration claim that was resolved for $8,700.00 in damages based upon accusations of stock trades being effected by Siva without customer approval from 2015 to July of 2017. FINRA Arbitration No. 18-00382 (Aug. 20, 2018).

On August 20, 2018, another customer initiated investment related arbitration claim involving Siva’s conduct was settled to resolve allegations of unauthorized trading by Siva while registered with Morgan Stanley Smith Barney. FINRA Arbitration No. 18-00801 (Aug. 20, 2018).

Siva was discharged by Morgan Stanley on August 18, 2017 based upon him being charged with fraud by SEC and United States Department of Justice.