Category Archives: Jefferies LLC

Rick Davidson-Former Morgan Stanley Broker-Discloses $1M Customer Dispute

MARCH 2018 UPDATE-FINRA Case 16-2283, discussed below was settled during 2017 for $175,000.

MAY 2017 UPDATE-In May 2017 a customer of Morgan Stanley Smith Barney alleged unauthorized trading with respect to corporate bond investments. That matter was settled for $21,000.

ORIGINAL POST-October 2016

The FINRA records of  Rick A. Davidson,  a  stockbroker who is currently employed by  Jefferies LLC  disclose 3 prior customer disputes that that are final , one pending customer dispute and a separation from employment after allegations.

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.

In July 2012, a customer of Davidson’s prior employer Morgan Stanley Smith Barney was paid a settlement of $101,787 to resolve allegations that Davidson engaged in unauthorized transactions beginning in 2010.

In currently pending FINRA arbitration #16-02283, a customer of Davidson while he was employed by Morgan Stanley Smith Barney alleges damages of $1,000,000 for unsuitable recommendations from January 2013-March 2016.

Davidson’s employment with Morgan Stanley was terminated in May 2016 when he voluntarily resigned. Morgan Stanley makes the following allegation in connection with the termination: “Allegations relating to registered representative’s exercise of discretion in clients’ accounts as well as receipt of a loan from a Morgan Stanley employee.”

Davidson was employed by Morgan Stanley from 6/2009-6/2016. He has been employed by Jefferies LLC since 5/2016, according to FINRA records.

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