March 2019 – Palm Harbor, Florida
According to publicly available records , the former branch manager of Morgan Stanley’s Palm Harbor, Florida, branch, Terry L. McCoy , was permanently barred from acting in any principal capacity in the securities industry for failing to properly supervise two brokers who abused the account of a 79 year old disabled customer.
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
Without admitting or denying the allegations, McCoy consented to the sanctions, which, in addition to the bar, include a $75,000 fine. According to FINRA’s findings, the customer was a wealthy 79 year old man who suffered from dementia and other physical disabilities. The brokers handling the customer’s accounts traded without the authority of the customer and generated over $9 million in commissions, which benefited the firm, the brokers and branch manager McCoy.
By failing to recognize multiple ‘red flags‘ and identify the excessive and unsuitable trading being conducted by the brokers he was charged with supervising, McCoy violated NASD RUle 3010(b) , MSRB Rule G-27 and FINRA Rule 2010.
A customer of Morgan Stanley filed FINRA arbitration 13-0549 alleging that McCoy, in his capacity as manager of the office, was liable for unsuitable recommendations, unauthorized trading, churning and violations of Florida Securities laws. The FINRA arbitration panel awarded the customer over $32 million dollars.
McCoy was registered with Morgan Stanley from 6/2009-11/2016.
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