Barry Franklin Connell of Ridgewood New Jersey a stockbroker formerly registered with Morgan Stanley Smith Barney is referenced in a customer initiated investment related arbitration claim which was resolved for $1,350,000.00 in damages supported by allegations that the customer’s funds had been misappropriated by the stockbroker’s actions at Morgan Stanley. Financial Industry Regulatory Authority (FINRA) Arbitration No. 17-03198 (May 6, 2019).
FINRA Public Disclosure confirms that Connell has been identified in nine additional customer initiated investment related disputes in regard to accusations of his violative actions while employed by Morgan Stanley. On July 18, 2017, a customer initiated investment related complaint regarding Connell’s conduct was settled to resolve allegations of breach of fiduciary duty and account mismanagement by the stockbroker.
Connell is the subject of another customer initiated investment related written complaint which was resolved for $3,468,308.19 in damages on April 25, 2017 founded on accusations that the customer’s funds had been removed and transferred from the customer’s account without authorization. On July 31, 2017, a customer initiated investment related complaint involving Connell’s conduct was settled for $45,000.00 in damages based upon allegations that investments were not suitable for the customer.
Connell is also referenced in a customer initiated investment related complaint which was resolved on March 16, 2018 for $725,000.00 in damages supported by accusations of forgery of the customer’s signatures on checks pertaining to cash management accounts and options investments.
Connell has been charged by Securities and Exchange Commission (SEC) with misappropriating $5,000,000.00 from investment advisory clients from December of 2015 to November of 2016. Case No. 1:17-cv-00831 (Feb. 3 ,2017). SEC’s Complaint alleges that money was stolen from investors through Connell’s transfer of assets between customer funds and his transfers from customer accounts to third parties for Connell’s benefit. The regulator alleged that no less than 100 unauthorized transactions were effected by Connell. The Complaint alleges that Connell violated Investment Advisers Act of 1940 Section 206(1) and 206(2.
Connell has also been barred from associating with any FINRA member in any capacity founded on allegations of him being uncooperative with FINRA’s requests during its inquiry into his actions. Case No. 2016052354501 (Apr. 21, 2017). The stockbroker’s lack of compliance initially resulted in a suspension imposed by FINRA between February 13, 2017 and April 20, 2017. Connell’s failure to resolve that suspension led to FINRA’s automatic bar on April 21, 2017.
Connell was discharged by Morgan Stanley based upon accusations of him making unauthorized transfers and withdrawals from customer accounts for his own benefit.