Doug Marshall McKelvey of Southlake, Texas, a stockbroker formerly registered with Morgan Stanley, has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon accusations that McKelvey refused to cooperate with a FINRA investigation into allegations of McKelvey’s possible misappropriation and unauthorized transactions. Letter of Acceptance, Waiver, and Consent No. 2022074899601 (August 26, 2022).
According to the AWC, in August of 2022, McKelvey failed to provide FINRA with the documents and information requested by FINRA under Rule 8210.
FINRA began its investigation into McKelvey after his broker employer filed a Form U5 Termination Notice. On July 6, 2022, FINRA sent McKelvey a request to produce documents and information. On August 10, 2022, McKelvey informed FINRA through his attorney that he had received the request and that he would not provide the information or documents. Accordingly, McKelvey violated FINRA Rules 2010 and 8210.
FINRA Public Disclosure shows that McKelvey is referenced in two customer initiated investment related disputes concerning McKelvey’s activities while associated with securities broker dealers. On December 23, 2008, a customer initiated investment related complaint involving McKelvey’s conduct was settled for $175,000.00 in damages based upon accusations that McKelvey sold illiquid investments in connection with the recommendation and sale of auction rate securities during the period that McKelvey was associated with UBS Financial Services Inc.
On May 2, 2022, another customer filed an investment related FINRA securities arbitration claim involving McKelvey’s activities where the customer sought compensatory damages based upon allegations that McKelvey misappropriated funds when McKelvey was associated with Morgan Stanley Smith Barney. FINRA Arbitration No. 22-00950.
On April 8, 2022, Morgan Stanley discharged McKelvey based upon accusations that McKelvey was involved in customer disputes alleging misappropriation and unauthorized activities.
McKelvey was registered with Morgan Stanley from June 1, 2009, to May 5, 2022.
