Ex-Morgan Stanley Advisor Accepts Industry Bar for Failing to Cooperate with FINRA Investigation
From the desk of Jim Eccleston at Eccleston Law
A former Morgan Stanley advisor, John Scott McCoy Jr., has accepted an industry bar instead of cooperating with a regulatory investigation into his departure from the firm, as detailed in a disciplinary settlement known as an Acceptance, Waiver, and Consent (“AWC”).
McCoy, who had an eight-year tenure at Morgan Stanley, left the firm in November 2022. AdvisorHub reports that McCoy was under review for allegedly transferring money into his personal accounts without sufficient funds to cover the transfers. Additionally, Morgan Stanley was investigating whether he had mismarked naked call options as less risky covered calls in his personal account.
The investigation did not involve any clients, and there were no customer complaints against McCoy, according to his BrokerCheck record. However, by failing to provide on-the-record testimony as required by FINRA, McCoy violated FINRA Rule 8210, which mandates members to provide requested information, and Rule 2010, which demands "high standards of commercial honor." McCoy’s Rule 8210 violation led to an automatic industry bar.
McCoy, who began his career with Morgan Stanley in 2014, accepted the penalty without admitting or denying the allegations.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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