Erez Law is currently investigating former Morgan Stanley broker Kevin Gunnip (CRD# 2701801) regarding unsuitable and excessive trading allegations. Gunnip has been registered with Morgan Stanley Smith Barney in Southlake, Texas from 2009 to 2018, when he was terminated regarding, “Allegations about whether the representative may have executed some transactions for non-discretionary client accounts without confirming the trades beforehand in all cases.”
In September 2019, FINRA barred Gunnip after he consented to the sanction and to the entry of findings that he refused to appear for on-the-record testimony requested by FINRA in connection with its investigation of allegations that Gunnip engaged in unsuitable short-term trading of long-term securities.
Gunnip has been the subject of three customer complaints between 2016 and 2017, according to his CRD report:
- August 2017. “Claimants alleged, inter alia, excessive trading with respect to transactions made in managed accounts – 2010 to 2014.” The customer sought $2 million in damages and the case was settled for $614,000. This case was regarding corporate debt, common and preferred stocks, and managed wrap accounts.
- February 2017. “Claimant alleged, among other things, that some of his investments and trading were unsuitable.” The customer sought $400,000 in damages and the case was settled for $145,000. This case was regarding corporate debt and common and preferred stocks.
- June 2016. “Claimants allege, inter alia, that their financial advisor recommended unsuitable investments.” The customer sought $200,000 in damages and the case was settled for $150,000. This case was regarding common and preferred stocks.
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 Gunnip’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and 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.