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Morgan Stanley Broker Barred for Unauthorized Trading

The Financial Industry Regulatory Authority (FINRA) issued a Letter of Acceptance, Waiver, and Consent (AWC) in which Thomas Meier, of Miami, Florida, was permanently barred from association with any FINRA member firm in all capacities.  Thomas Alan Meier was found by FINRA to have engaged in unauthorized trading in eight of his customer’s accounts, causing substantial losses to the affected customers.

FINRA found that Mr. Meier effected approximately 1,290 unauthorized transactions in eight accounts of six of his customers.  The transactions included both purchases and sales of equity securities.  According to FINRA, Mr. Meier did not have discussions with the customer prior to the transactions, nor did he obtain their authorization prior to executing any of the transactions.  FINRA’s findings note that two of the customer’s suffered realized losses of approximately $78,000.  Mr. Meier allegedly earned approximately $265,000 for his unauthorized transactions. 

FINRA also found that Mr. Meier exercised discretion in five accounts belonging to four customers.  Mr. Meier did not have the written authorization to exercise discretion and the accounts were not accepted by Morgan Stanley as discretionary.  Four of Mr. Meier’s customers suffered unrealized losses of $1.4 million and the firm has, to date, paid more than $1 million to three of the customers in connection with these complaints. Without admitting or denying the findings, Thomas Meier consented to the sanctions.

Stockbrokers have been known to engage in many types of practices that may be in violation of industry and firm rules, practices, and procedures.  In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a reasonable supervisory system.  The implementation of the rules require supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures.  If broker-dealers and their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the misconduct. Therefore, investors who have suffered losses stemming from unauthorized trading by their broker can file claims to recover damages against broker-dealers, like Morgan Stanley, which should consistently oversee its brokers’ activities in order to prevent the above-described prohibited conduct.

Have you suffered losses in your Morgan Stanley account due to your stockbroker’s unauthorized trading?  If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation.  Mr. Pearce is accepting clients with valid claims against Morgan Stanley stockbrokers who may have engaged in unauthorized trading and caused investors’ losses.

The most important of investors’ rights is the right to be informed!  This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida.  For over 35 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues.  The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally!  Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.