Can I recover losses from investments with former Morgan Stanley broker Doug McKelvey (CRD# 4502849) regarding misappropriated funds? He was registered with Morgan Stanley in Southlake, Texas from 2009 to 2022, when he was terminated regarding “representative’s unauthorized activity and misappropriation of funds from client accounts, which were held by relatives of the representative.”
In August 2022, FINRA barred him after he “consented to the sanction and to the entry of findings that he refused to provide information and documents requested by FINRA. The findings stated that this matter originated from a Uniform Termination Notice for Securities Industry Registration (Form U5) filed by McKelvey’s member firm stating that he had been discharged because of concerns regarding his unauthorized activity and misappropriation of client funds from client accounts, which were held by his relatives.”
Doug McKelvey Customer Complaints
He has been the subject of two customer complaints between 2008 and 2022, according to his CRD report. The most recent complaint was regarding:
May 2022. “Claimant alleges, inter alia, FA misappropriated funds from Claimants’ accounts – 2016 to 2022.” The case was settled for $1.4 million. The complaint was regarding managed and wrap accounts.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Morgan Stanley may be liable for investment or other losses suffered by Doug McKelvey’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
"*" indicates required fields