According to Siegel’s FINRA BrokerCheck report, the Financial Industry Regulatory Authority (“FINRA”) suspended Siegel in April 2016 after he failed to comply with an arbitration award or settlement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance with either.
FINRA suspended Siegel despite permanently barring him in October 2015 for failing to respond to a FINRA request for information.
The initial FINRA bar occurred shortly after Morgan Stanley (CRD# 149777) discharged Siegel for allegedly exercising discretion in several of his clients’ accounts. Morgan Stanley terminated Siegel in June 2015
Siegel’s other notable BrokerCheck disclosure is a FINRA arbitration settled in March 2008 regarding the alleged sale of an auction rate security (“ARS”) that was made prior to widespread illiquidity in the ARS market prior to the sale. According to Siegel’s BrokerCheck report, that FINRA arbitration settled for $500,000.
Morgan Stanley employed Siegel from 2007 to when he was permanently barred in 2015.
When a customer opens an account with a broker and brokerage firm, the customer can choose whether or not he or she wants to give the broker to trade discretionarily in order to capitalize as quickly as possible on an ever-changing market. Often times, customers choose to reserve that right and have the final “OK” before a broker facilitates a transaction.
Unauthorized trading is when a broker facilitates a transaction without the permission of the customer in a non-discretionary account. According to FINRA, it is one of the common investor issues along with misrepresentation, cold-calling, and unsuitability.
Unauthorized discretion is a serious form of broker misconduct. A broker’s employing firm is responsible for overseeing the broker to prevent such misconduct. If a broker happens to escape the brokerage firm’s oversight, the customer should not be responsible for the losses flowing from the misconduct.
Contact Our Firm if You’ve Lost Money
FINRA arbitration is a fast, efficient way to recover your lost investment funds due to unauthorized trading. We work on a contingency fee basis, meaning you pay us nothing unless we win and recover money for you.
If you have invested with William V. Siegel and Morgan Stanley and have lost money doing so, you may be able to recover some or all of your losses. Our lawyers are experienced in recovering investor losses due to broker and brokerage firm misconduct through FINRA arbitration.
Silver Law Group represents the interests of investors who have been the victims of investment fraud. If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.