On September 15, 2009, FINRA announced that a Financial Industry Regulatory Authority (FINRA) Hearing Panel has barred John Edward Mullins a former registered representative with Morgan Stanley DW, Inc. (now known as Morgan Stanley Smith Barney, LLC) for misappropriating $11,156.47 from the charitable foundation of a 97-year old nursing home resident and widow who was his client for more that 20 years.
The panel also sanctioned Mullins’ wife, Kathleen Maria Mullins, also a former registered representative with Morgan Stanley — giving her a nine-month suspension and a $20,000 fine for borrowing $100,000 from the same client without the approval of her brokerage firm. Kathleen Mullins also made material misstatements on compliance questionnaires concerning her official role in the charitable foundation and receipt of the loan. The hearing panel is also requiring Kathleen Mullins to re-qualify by examination before she can be registered in any capacity in the securities industry.
The hearing panel noted that in early April 2006, just after the elderly widow fell ill and was under round-the-clock nursing care, John Mullins “embarked on his misuse and conversion of the foundation’s funds.” The hearing panel determined that within three months of the customer’s illness, John Mullins misappropriated $4,000 to pay for his and his wife’s vacation at the Four Seasons in London . The hearing panel also found that John Mullins misappropriated $5,500 to reduce his personal bill at Boyds of Philadelphia, an upscale Philadelphia clothing store, and $1,656.47 to buy 23 bottles of wine from Morton’s Restaurant in Atlantic City, which he stored in his personal wine locker at the steakhouse.
Unless the matter is appealed to FINRA’s National Adjudicatory Council (NAC), or is called for review by the NAC, the hearing panel’s decision becomes final after 45 days.
After leaving Morgan Stanley in September 2006, and before being officially barred from the industry for securities fraud violations, John Mullins was a financial advisor with Multi-Financial Securities Corporation and Next Financial Group, Inc. According to Mullins’ FINRA Broker Report (CRD), the FINRA investigation into Mullins’ misappropriation of client funds was not the first instance that Mullins’ has been named in a claim involving securities fraud. Mullins has also been named in at least 6 customer claims related to securities fraud.
If you have questions about investments you made with John Mullins, Morgan Stanley, Multi-Financial Securities or Next Financial Group, or if you believe that you have been the victim of a securities fraud, The White Law Group may be able to help. To speak to a securities attorney, please call our Chicago office at 312-238-9650 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.