Michigan Morgan Stanley Securities Representative Agrees to FINRA Sanctions to Resolve Allegations of Exercising Discretion in Non-Discretionary Accounts without ApprovalFriday, November 22, 2019
The Financial Industry Regulatory Authority (FINRA) Department of Enforcement recently approved a Letter of Acceptance, Waiver and Consent (AWC) submitted by John Hoagland, a former general securities representative associated with Morgan Stanley in Troy, Michigan from June 2009 to January 2018.
According to his FINRA BrokerCheck report, Hoagland voluntarily resigned from the firm on December 20, 2017 after allegations arose that Hoagland executed transactions in non-discretionary accounts without the clients’ knowledge. Morgan Stanley later amended Hoagland’s Form U5 on March 1, 2018 and again on July 30, 2018 to reflect two customer complaints alleging unauthorized trading. These customers reached settlement amounts totaling over $44,000.
FINRA Department of Enforcement alleges in the AWC that Hoagland executed nine unauthorized transactions totaling $99,171 in one customer’s account in September and October 2017. Additionally, FINRA claims that Hoagland exercised discretion by effecting 96 trades in five customers’ accounts without their knowledge and without obtaining prior authorization from these customers. Based on the foregoing, Hoagland violated NASD Rule 2510(b) and FINRA Rule 2010.
By signing the AWC and without admitting or denying the allegations made against him, John Hoagland agreed to a three-month suspension from associating with FINRA member firms in any capacity and a $5,000 fine.
If a broker was not properly supervised while registered at a brokerage firm, the firm can be held liable for the broker’s misconduct. Did you lose money due to broker misconduct? If so, you may be able to recover the money you lost from your broker or the brokerage firm where he or she is registered. Since 1998, our firm has represented victims of investment fraud and broker misconduct. Call us today at 1-877-410-8172 for a free, no obligation consultation.