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Former Morgan Stanley Financial Advisor Richard Alan Kern Suspended by FINRA

Posted on Monday, May 8th, 2017 at 8:12 am    

Erez Law is currently investigating former Morgan Stanley Richard Alan Kern (CRD# 1705828) regarding discretionary trading in customer accounts. Kern was registered with Citigroup Global Markets, Inc., a predecessor to Morgan Stanley Smith Barney, located in Beavercreek, Ohio from 2009 to 2016 before they allowed him to voluntarily resign regarding “Concerns related to transactions made in a deceased client’s account.”

In March 2017, FINRA suspended Kern for two months and fined him $7,500 in civil and administrative penalties and fines, according to the acceptance, waiver and consent. It is alleged that between January 2006 and April 2016, Kern made 20 discretionary transactions in a customer’s account without prior written authorization from the customer and without having the account approved as discretionary by Morgan Stanley. Additionally, the investigation found that Kern “provided false responses on four annual compliance questionnaires inaccurately indicating that he had not exercised discretion, in violation of FINRA Rule 2010.”

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 Kern’s customers.

Erez Law represents investors in the United States for claims against former Morgan Stanley Richard Alan Kern, who is alleged to use discretion when effecting trades in customer accounts. If you were a client of former Morgan Stanley Richard Alan Kern or another firm, 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.