FINRA Suspends Former Morgan Stanley Advisor Over Expense Account Submissions

Posted on March 22nd, 2021 at 2:23 PM
FINRA Suspends Former Morgan Stanley Advisor Over Expense Account Submissions

From the Desk of Jim Eccleston at Eccleston Law LLC:

The Financial Industry Regulatory Authority (FINRA) sanctioned Kerry Moy with a $5,000 fine and two-month suspension related to resolve  allegations of inaccurate expense account submissions. 

Moy allegedly submitted several expense claims for business meals that contained the wrong names of the clients or prospective clients who were in attendance. Moy allegedly instructed his assistant to write in random client names and submit the reimbursement rather than providing the assistant client names along with the receipts, according to FINRA. 

FINRA stated the underlying expenses were appropriate. However, Moy violated Rule 2010, requiring all industry members to conduct business with high standards of commercial honor. The regulator stated that had Moy submitted the expense reports with the correct names, the underlying expenses would have been reimbursable under Morgan Stanley's business expense policies. 

Moy claimed that Morgan Stanley used this small, administrative detail to destroy him. In response to Morgan Stanley's U5 filing, Moy stated that his termination was a "rush to judgment."   

FINRA increasingly has focused on expense infractions in recent years. In some cases, the regulator has barred advisors from the industry for misstated reports. 

Eccleston Law LLC represents financial advisors nationwide. Feel free to contact us to discuss your situation.

Tags: eccleston, eccleston law, finra, morgan stanley

Return to Archive

TESTIMONIALS

Previous
Next

If the regulators are after you, and are trying to make a case against you, and you are going to contest their allegations against you, make sure you have the best securities industry defense lawyers, Eccleston Law Firm. My case was spun into a combination of penalties including fines, cash settlements, CE courses and suspension. They were the best I have seen in action. When all was said and done, they had done their magic, my situation was negotiated and settled with a simple "letter of caution" and a case closed without action. It is the most important legal business decision you will ever make, make it Eccleston Law.

Rick R.

LATEST NEWS AND ARTICLES

February 23, 2024
Advisor Accepts Industry Bar Amid FINRA Probe into Outside Business Activities

John A. Dougherty, a veteran advisor with 23 years of experience, agreed to an AWC (Acceptance, Waiver, and Consent) after refusing to cooperate with a regulatory investigation into allegations of undisclosed outside business activities.

February 22, 2024
Key Considerations for Advisors When Assessing the Financial Soundness of Annuities

While rating agencies like Fitch and S&P Global Ratings generally highlight the strength of annuity issuers, advisors still should scrutinize certain factors in their assessment process.

February 21, 2024
SEC Alleges Fraud Against Morgan Stanley and Former Executive in Block Trading Business

As reported by the Wall Street Journal, the Securities and Exchange Commission (SEC) has charged Morgan Stanley & Co. LLC and its former head of equity syndicate desk, Pawan Passi, with a multi-year fraud involving the disclosure of confidential information related to block trades.