Frank Fornshell Venable II of Knoxville Tennessee a stockbroker currently registered with Morgan Stanley has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Venable placed unauthorized trades in Morgan Stanley customers’ accounts. Letter of Acceptance Waiver and Consent No. 2017056098601 (Jan. 3, 2019).
According to the AWC, between January of 2014 and March of 2016, during the time that Venable was employed with Morgan Stanley, Venable placed four hundred trades on a discretionary basis in three customers’ accounts. Apparently, Venable failed to procure the customers’ written authorization for Venable to exercise discretion. The AWC additionally stated that Venable never procured approval from Morgan Stanley for discretionary trading.
The AWC further stated that from 2014 to 2016, false responses had been made by Venable on at least three of Morgan Stanley’s compliance questionnaires. Evidently, Venable claimed that he never exercised discretionary power in customer accounts. FINRA determined that Venable made false representations to his firm in this respect. Consequently, FINRA found Venable’s conduct violative of FINRA Rules 2010 and National Association of Securities Dealers (NASD) Rule 2510(b).
FINRA Public Disclosure confirms that Venable is referenced in five customer initiated investment related disputes pertaining to accusations of his violative conduct during the time that he was associated with J.J.B. Hilliard W.L. Lyons Inc. and Morgan Stanley. Particularly, a customer brought an investment related written complaint regarding Venable’s activities where the customer requested $7,096.00 in damages supported by allegations of poor performance, unsuitability and churning of the customer’s investment portfolio.
On January 17, 2000, Venable was the subject of a customer initiated investment related complaint in which the customer sought $19,000.00 in damages founded on accusations that Venable placed the customer in a corporate debt investment which failed to conform to the customer’s risk tolerance and objectives for principal protection. On September 17, 2003, another customer filed an investment related complaint regarding Venable’s activities where the customer requested $35,725.00 in damages based upon allegations of an unsuitable allocation of investments in the customer’s variable annuity.
Subsequently, a customer filed an investment related complaint involving Venable’s conduct on August 3, 2017 in which the customer sought at least $5,000.00 in damages supported by accusations that the customer was placed in a variable annuity that was in no way suitable for the customer. Thereafter, a customer filed an investment related arbitration claim concerning Venable’s conduct where the customer requested unspecified damages founded on allegations that Venable traded mutual fund, structured products and unit investment trust investments in the customer’s account on an excessive basis. FINRA Arbitration No. 17-02833 (Oct. 25, 2017).
Venable has been employed by Morgan Stanley since June 1, 2009.
