The Investor’s Watchdog

The Investor's Watchdog

Tampa Broker Consents to FINRA Fine and Suspension to Resolve Allegations of Exercising Discretion without Customer and Firm Approval

Wednesday, May 29, 2019

On May 16, 2019, the Financial Industry Regulatory Authority (FINRA) Department of Enforcement approved a Letter of Acceptance, Waiver and Consent (AWC) submitted by former Morgan Stanley Smith Barney, LLC registered representative Stuart Jeffries Henley (a/k/a Jeff Henley) to resolve allegations of securities industry violations.

According to Henley’s FINRA BrokerCheck report, he was associated with several FINRA member firms, including three in Tampa, Florida within the past ten years. From April 2007 to June 2009 he was associated with Morgan Stanley & Co. Incorporated and Morgan Stanley from June 2009 to March 2018. Morgan Stanley discharged Henley when concern arose that he had executed transactions for a non-discretionary client account without seeking approval from the client on the date of the trade in all cases. He was most recently associated with Calton & Associates, Inc. from June 2018 to August 2018.

Without admitting or denying the allegations, Henley consented to the entry of findings that he exercised discretion for approximately 150 transactions in an elderly customer’s account without receiving prior approval from his firm or written authorization from the customer. FINRA also asserted that Henley provided inaccurate responses on annual compliance questionnaires between 2013 and 2015 by falsely stating that he had not exercised discretion in any customer account. By signing the AWC, Henley consented to a $5,000 fine and 30 business-day suspension from associating with any FINRA member firm in any capacity.

Many times, brokerage firms can be held liable if they failed to supervise a broker who committed misconduct while registered at their firm. If you lost money due to your broker’s bad investment advice, you may be able to recover from your broker or his or her brokerage firm. Call us (1-877-410-8172) for a free, no obligation consultation. Since 1998, we have been fighting for victims of broker misconduct and investment fraud.

 

Author: Jason T. Albin

Jason Albin is an Attorney and Partner at ChapmanAlbin, the investor rights law firm. He has represented hundreds of investors who have lost money due to broker misconduct, unsuitable investment advice and fraud.​ Jason also represents individuals in “whistleblower” suits filed against unscrupulous companies that try to defraud the US federal and state governments.

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