Investigating Potential Claims – Financial Advisor Stewart Malloy – Riverhead, NY
According to the Financial Industry Regulatory Authority (FINRA), the regulator is investigating former financial advisor Stewart Malloy for allegedly making unauthorized trades in two clients’ accounts.
In August 2015, Malloy consented to FINRA’s findings contained in a Letter of Acceptance, Waiver and Consent that he allegedly violated FINRA rules for effecting discretionary transactions in the joint accounts of two Morgan Stanley customers without written authorization from the customers and written acceptance of the accounts as discretionary by Morgan Stanley.
Further, FINRA alleges that Malloy inaccurately asserted on a Firm annual compliance questionnaire that he did not have any accounts in which he exercised discretion. In the August 2015 AWC, Malloy reportedly consented to a sanction of a 30 business-day suspension and a $5,000 fine.
According to a FINRA complaint filed on Friday, FINRA’s Department of Enforcement alleges that Malloy failed to appear and provide testimony in regards to their investigation on two occasions.
According to Malloy’s FINRA BrokerCheck report, he was registered with Morgan Stanley in Riverhead, NY from June 2009 until October 2015. Malloy is not currently registered as a broker. Malloy has 8 customer complaints listed on his broker report; allegations include unauthorized trades and unsuitable investments among others.
For FINRA’s full findings see FINRA case # 2016051299201.
Failure to Supervise
The White Law Group is investigating potential securities fraud claims involving the liability that Morgan Stanley may have for failing to properly supervising Stewart Malloy.
Brokerage firms are required to properly supervise their advisors. They must ensure that those advisors are complying with applicable FINRA rules and regulations. If it can be demonstrated that Malloy’s former employer failed to properly supervise him, the firm may be held responsible for the losses in a FINRA arbitration claim.
If you are concerned about your investments with Stewart Malloy and would like a free consultation to discuss your litigation options, please call The White Law Group at 1-888-637-5510.
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.