Former Morgan Stanley financial advisor Kevin Smith (CRD# 1363302) barred by FINRA regarding discretionary trading in customer accounts. Smith was registered with Morgan Stanley in Minneapolis, Minnesota from 2007 to November 2016, when he was terminated regarding, “Allegations related to representative’s activities while trustee on a family member’s trust and related to a trade that may have been executed without confirming with the client beforehand, according to the client.” Smith was employed Contego Capital Advisors since April 2017 and was terminated in October 2018 regarding, “Mr. Smith informed firm today of FINRA AWC pursuant to which he chose to retire.”
In October 2018, FINRA barred Smith after he consented to the sanction and to the entry of findings that he refused to appear and provide FINRA on-the-record testimony in connection with its investigation concerning his termination from the member firm, certain actions Smith took while serving as trustee for the trust of a family member and the firm client, and discretionary trading in the firm client’s account.
Smith has been the subject of one customer complaint in 2016, according to his CRD report:
June 2016. “Client alleged that the purchases of two structured notes in 2015 were misrepresented. Damages unspecified.” The case was settled for $34,444.89.
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 Smith’s customers.
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