The Financial Industry Regulatory Authority, Inc. (FINRA) has settled claims with former Morgan Stanley broker Thomas Alan Meier for unauthorized trading. Morgan Stanley has settled 13 claims, paying former clients of the broker $2.5 million.
Broker Made More than 1,000 Unauthorized Trades
FINRA said that Thomas Alan Meier made more than 1,000 unauthorized transactions in six customer accounts over the course of three-and-a-half years, from July 2012 and March 2016. According to findings of the investigation, the trades yielded him commissions of about $265,000.
During the same period, Meier used discretion without written authorization in four other client accounts, although the accounts were non-discretionary. In total, customers reportedly lost $818,000 plus more than $2 million of unrealized losses. As a general matter, brokers are not permitted to make trades in customer accounts without first obtaining the customer’s authorization to make the trade. Meier was found to have repeatedly violated this fundamental rule.
Morgan Stanley Settles Claims Against Broker
Between April 2016 and October 2017, Morgan Stanley filed 21 amended Form U5 termination notices for Meier related to 14 customer complaints, including two arbitration claims. To date, the firm has settled 13 of the claims, paying a total of $2.5 million. One claim is still outstanding.
Dimond Kaplan & Rothstein has represented multiple former customers of Thomas Alan Meier. Each of DKR’s clients claimed that Meier mishandled their investment accounts and made trades without the clients’ authorization.
FINRA said in its letter of acceptance, waiver and consent that Meier resigned from Morgan Stanley in March of 2016 while “under internal review” as the firm was reviewing his trading activity. Meier accepted the bar without admitting or denying the findings. Prior to Morgan Stanley, Meier held positions at Smith Barney, Prudential Securities, Thomson McKinnon, and Merrill Lynch. He is no longer associated with a FINRA-member firm.
Are You a Victim of Stockbroker Misconduct?
If you believe you are a victim of Meier or believe you lost money as a result of broker fraud or negligence, contact an experienced investment fraud attorney today.
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