The Investor’s Watchdog

The Investor's Watchdog

Stewart Malloy, Former New York Morgan Stanley Broker Barred from FINRA Member Firms for Failing to Appear for Testimony Regarding Allegations of Executing Unauthorized and Unsuitable Transactions

Tuesday, January 15, 2019

On December 12, 2018, the Financial Industry Regulatory Authority (FINRA) Department of Enforcement reached a Default Decision resolving a complaint against Stewart Clinton Malloy, a former registered representative at Morgan Stanley in Riverhead, New York from June 2009 to October 2015. Malloy had failed to appear for on-the-record testimony pursuant to FINRA Rule 8210.

According to the Complaint filed on August 24, 2018, FINRA staff sent Malloy a letter requesting that he appear for testimony under oath in connection with customer complaints alleging that Malloy had purchased energy stocks in their accounts that were unauthorized and unsuitable based on their trade goals and strategies. Morgan Stanley reported in the Form U5 that the customers had alleged in the complaints that they lost $1 million as a result of his misconduct.

FINRA staff attempted to reach Malloy via mail, email, and phone to discuss his appearance for testimony. Malloy failed to appear for testimony on May 30, 2018 and again on June 6, 2018 when FINRA staff attempted to reschedule.

For failing to appear for on-the-record testimony and violating FINRA Rules 8210 and 2010, FINRA barred Stewart Clinton Malloy from associating with any FINRA member firm in any capacity.

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 Stewart Malloy’s alleged misconduct cost you money? If so, you may be able to recover from him or his brokerage firm Morgan Stanley. With over 18 years of experience representing victims of investment fraud and broker misconduct, our team of attorneys is ready to fight for you. Call us (1-877-410-8172) today for a free, no obligation consult.

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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