FINRA orders Barry Connell to repay bonuses to Morgan Stanley
According to reports, an FINRA arbitration panel has ordered Barry F. Connell, 51, to repay $300,000 of upfront bonuses owed to Morgan Stanley because of promissory notes he signed.
Connell was registered with the firm in Ridgewood, New Jersey from 2008 until he was discharged last November. He was arrested in February on charges of allegedly stealing $5 million from his clients. Connell is incarcerated at the Metropolitan Detention Center in Brooklyn pending trial on 15 counts of fraud and embezzlement.
The FINRA arbitrator in New York awarded Morgan Stanley and its MSSB FA Notes Holdings entity $293,000 plus interest and $4,025 in costs. This related to four promissory notes to the firm in addition to $7,000 for Morgan Stanley’s attorneys’ fees.
The SEC alleged that Barry Connell, who worked for Morgan Stanley in Ridgewood, NJ, conducted over 100 unauthorized transactions by using falsified authorization forms misrepresenting that he received verbal requests from the clients. Connell allegedly used money from client accounts to rent a home in suburban Las Vegas and pay for a country club membership and private jet service.
According to his FINRA BrokerCheck report, Connell has 9 customer disputes listed. Allegations include unsuitable investments, unauthorized trades, and failure to follow instructions. He was discharged from Morgan Stanley in November 2016.
Failure to Supervise
Brokerage firms are required to adequately supervise their advisors. They must ensure they are complying with FINRA rules.
When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
The brokerage firms can be held responsible for any losses in a FINRA arbitration claim if it is determined that they failed to properly supervise their agent.
Did you suffer losses investing with Barry Connell and Morgan Stanley? If so the attorneys at The White Law Group may be able to help you. For a free consultation, please call (888) 637-5510.
The foregoing information, which is all publicly available, is being provided by The White Law Group.
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