Another Ex-Morgan Stanley Broker is Barred by FINRA

The Financial Industry Regulatory Authority has barred another former Morgan Stanley (MS) broker. John Halsey Buck III consented to the industry bar after he did not provide the information and documents that the self-regulatory organization asked for related to its probe into his alleged involvement in unapproved private securities sales. Buck, who has over 50 years experience in the industry, was let go by the brokerage firm earlier this year.

Morgan Stanley reportedly fired him in the wake of disclosure-related issues, including those involving private investments that did not involve the broker-dealer. According to InvestmentNews, the allegations against Buck have to do with “selling away.” This is a practice that happens when a stockbroker, financial adviser, or a registered representative solicits the sale of or sells securities that his or her brokerage firm does not offer or hold. Broker-dealers usually have a list of approved products that its brokers are allowed to sell to firm clients.

Buck had been with the industry since 1965. Previous to working with Morgan Stanley, he was a registered broker with UBS Financial Services (UBS), Wachovia Securities, Prudential Securities Incorporated, Loeb Partners, and Hornblower, Weeks, Noyes & Trask.

Other Barred Morgan Stanley Brokers

Buck is not the only former Morgan Stanley broker to be barred by FINRA this month. The SRO also barred Kevin Smith, who refused to testify in front of FINRA about allegations related to a structured product’s trade in a family member’s trust. Smith is accused of making the trade without consulting the client. The brokerage firm fired him in 2016. Smith also was a former UBS Financial Services broker.

Another barred ex-Morgan Stanley broker, Aaron Parthemer, made headlines again a few months ago after two more professional athletes stepped forward filing arbitration claims against the broker-dealer for allegedly failing to supervise him. Ex-Miami Heat player Udonis Haslem and former Detroit Lions and Miami Dolphins player Louis Delmas are asking for $413K and $180K, respectively.

Parthemer, who spent over 20 years in the industry and was a seasoned broker, was with Morgan Stanley from 2001 to 2009 in Florida. From 2011 to 2015 he was with Wells Fargo (WFC). The broker-dealer fired him three years ago. Parthemer also was an NFL Players Association Registered Financial Adviser from 2012 to 2015.

Parthemer came under fire over allegations that he recommended to clients that they invest in Club Play, a night club in Miami that is now no longer in operation. To date, Wells Fargo Advisors and Morgan Stanley have paid at least $3.2M over claims brought by Parthemer’s former professional athlete clients.

Morgan Stanley Broker Fraud Claims

If you are an investor that lost money while Buck was your broker, or if you sustained losses while investing with another Morgan Stanley broker, and you suspect that broker fraud may have been a factor, please contact Shepherd Smith Edwards and Kantas, LLP today. Our broker fraud lawyers represent investors throughout the US. We have successfully gone up against the largest Wall Street firms in the industry to help investors recoup their money. Our investor fraud clients include retail investors, high net worth individual investors, and institutional investors.

Broker with more than 50 years experience booted for not cooperating with Finra probe, InvestmentNews, October 12, 2018

The FINRA Letter of Acceptance, Waiver, and Consent in the Buck Case (PDF)