Daniel Todd Levine of Greenwood Village Colorado a stockbroker formerly employed by Morgan Stanley has been issued an Order from Securities and Exchange Commission (SEC) in which he has been barred from being a stockbroker or investment adviser representative or otherwise barred from associating with securities broker dealers or investment advisors based upon accusations of Levine concealing adverse information from bitcoin investors. In the Matter of David T. Levine Administrative Proceeding No. 3-19445 (Sept. 13, 2019).
According to the Order, Levine was barred by SEC because of sanctions imposed by Colorado Securities Commissioner. On March 5, 2019, Levine’s stockbroker and investment adviser licenses had been revoked, effectively barring Levine from being a stockbroker in Colorado. Consent Order No. 2019-CDS-003. On March 3, 2019, a Stipulation for Consent Order had been issued by Colorado Division of Securities who contended that Levine placed investors’ assets into a bitcoin scheme between December of 2017 and February 2018. The investors had allegedly purchased bitcoin at discounted rates through over the counter transactions. Unbeknownst to investors, the scheme was partially operated by Levine’s brother who since 2005 has been a fugitive.
Colorado Division of Securities alleged that there was no adequate due diligence performed by Levine as it related to the bitcoin owners. The stockbroker allegedly neglected to make sure that the bitcoin purchases were effected through secure transfers. SEC indicated that more than $1,500,000.00 in investor funds had been stolen by the stockbroker’s brother. Investors were never told by Levine about the risks of their transactions including that the transfers of their assets would not be secure. The stockbroker also concealed his transactions from Morgan Stanley in violation of its outside business activity rules.
Levine has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on the stockbroker having obstructed the regulator’s investigation into his activities at Morgan Stanley. Letter of Acceptance Waiver and Consent No. 2018059393201 (Jan. 8, 2019). According to the AWC, FINRA tried to assess if Levine violated FINRA rules through engaging in unauthorized trades and outside business activities. The regulator sought information and documents from the stockbroker in August of 2018. By October of 2018, FINRA learned from Levine’s legal counsel that Levine would not cooperate with its requests. Levine violated FINRA Rules 2010 and 8210.
FINRA Public Disclosure reveals that Levine has been identified in two customer initiated investment related disputes containing allegations of his bad actions while employed by Morgan Stanley. On July 9, 2018, a customer filed an investment related complaint involving Levine’s conduct in which the customer requested unspecified damages supported by accusations that the customer’s signature had been forged by Levine while registered with Morgan Stanley. He is referenced in another customer initiated investment related written complaint on September 13, 2019 where the customer sought $250,000.00 in damages based upon allegations of a private equity transaction which the stockbroker solicited between June of 2018 and December of 2018.
Levine was employed by Morgan Stanley between June 7, 2013 and August 2, 2018. Between July 5, 2018 and August 7, 2018, he was registered with First Financial Equity Corporation.