June 19, 2015
Morgan Stanley Smith Barney entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that between June 2009-November 2014, they failed to establish, maintain and enforce reasonable supervisory systems and written procedures regarding outgoing wire transfers and branch check disbursements from customer accounts. As a result, according to the AWC, three brokers in two different branch offices were able to convert a total of $494,400 from 13 Morgan Stanley Smith Barney customers using fraudulent wire transfers and branch checks sent from the customer’s accounts to third party accounts.
A branch office in Paramus, New Jersey, and a branch office in Fort Lauderdale, Florida were named in the FINRA action.
Disciplinary Proceeding NO. 2011025479301
Morgan Stanley Smith Barney was censured and ordered to pay a fine of $650,000.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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