Karen McKinley charged with 7 counts of theft by taking and 4 counts of financial exploitation
According to a press release from the New Hampshire Attorney General, former financial advisor Karen A. McKinley, age 53, of Bedford, New Hampshire has been indicted.
McKinley was indicted by the Hillsborough County North Grand Jury on 7 counts of Theft by Unauthorized Taking and 4 counts of Financial Exploitation of the Elderly on November 17, 2017. Allegations are in connection with her handling of bank and brokerage accounts of an elderly client while she was employed by Morgan Stanley in Manchester, NH.
The alleged conduct took place between early 2013 and early 2016.
According to court documents, McKinley was also indicted on 1 count of Falsification of Physical Evidence in connection with a document she caused to be submitted to the State during the investigation.
Each of the Theft and Financial Exploitation of the Elderly charges carries a maximum penalty of 10-30 years of imprisonment and a $4,000 fine. The Falsification of Physical Evidence charge carries a maximum penalty of 7 years and a $4,000 fine.
McKinley was arraigned at the Hillsborough County Superior Court (North) on December 15, 2017 at 9:00 a.m.
According to her FINRA BrokerCheck report, Karen McKinley was registered with Morgan Stanley in Manchester, NH from June 2009 until September 2016 when she was discharged for “Allegations regarding employee’s compliance with pre-trade client confirmation requirement in connection with certain trades in non-discretionary accounts.” FINRA reportedly barred McKinley from working in the securities industry two months later.
Failure to Supervise Advisor Karen McKinley
Brokers have a fiduciary duty to make investment recommendations that are consistent with the clients net worth, investment experience and objectives. Risk tolerance, age, and liquidity needs also need to be considered. Furthermore, brokers are prohibited from engaging in underhanded businesses practice, like churning or unauthorized trading, that violate securities laws and regulations.
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.
If you suffered losses investing with Karen McKinley and Morgan Stanley, the attorneys of The White Law Group may be able to help you recover your losses. For a free consultation with a securities attorney, please call 888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group, visit www.WhiteSecurtiesLaw.com.