Morgan Stanley Stockbroker Sanctioned By FINRA
Sachin Kumar of New York New York a stockbroker formerly registered with Morgan Stanley has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that Kumar advised a Morgan Stanley customer to sign blank or incomplete documents relating to the transfer of the customer’s outside accounts. Letter of Acceptance Waiver and Consent No. 2019063042701 (May 26, 2020).
According to the AWC, in February of 2019, Kumar and a Morgan Stanley customer spoke about transitioning the customer’s accounts to Morgan Stanley that were held at other institutions. The AWC indicated that the customer was instructed by Kumar to sign an Automated Customer Account Transfer Form which would be used to transition those outside accounts into Morgan Stanley.
On April 11, 2019, another discussion took place between Kumar and the customer in regard to transitioning an account to Morgan Stanley that was valued at more than $1,000,000.00. By April 12, 2019, Kumar completed the executed ACAT document and had submitted it to Morgan Stanley to effect the transfer. Kumar was later advised by the customer not to transfer the customer’s outside account to Morgan Stanley. The transfer had already been processed by the time that Kumar noticed the customer’s correspondence. FINRA found that Kumar violated FINRA Rule 2010.
FINRA Public Disclosure indicates that on June 26, 2019, a customer filed an investment related complaint pertaining to Kumar’s conduct in which the customer requested unspecified damages supported by allegations that the customer’s signatures had been doctored by Kumar to effect an account transfer.
Kumar was discharged by Morgan Stanley Wealth Management on July 29, 2019 based upon accusations that Kumar had engaged in unauthorized activities. The securities broker dealer alleged that Kumar re-used a customer’s signature and had altered a document after the customer had executed the document. Morgan Stanley also alleged that Kumar failed to report a customer’s complaint concerning the transfers.
Kumar has been registered with Laidlaw Company since October 14, 2019.