John Gunther Hoagland of Troy Michigan a stockbroker formerly employed by Morgan Stanley has been fined $5,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he effected trades in the accounts of Morgan Stanley customers without authorization. Letter of Acceptance Waiver and Consent No. 2018057112001 (Nov. 11, 2019).
According to the AWC, trades had been executed by Hoagland in the accounts of two customers without the customers’ knowledge or consent. The AWC stated that at least six trades were placed by Hoagland in the account of customer EB between September 22, 2017 and October 19, 2017. Hoagland also effected a securities purchase for Morgan Stanley customer, SP, without that customer ever having provided him with permission. FINRA found Hoagland’s conduct violative of FINRA Rules 2010.
The AWC also stated that between September 1, 2017 and November 30, 2017, discretion had been exercised by Hoagland in the accounts of five customers. Ninety-six trades were effected by the stockbroker without generating advanced customer approval for each trade. Indeed, the customers’ accounts had not been approved by the securities broker dealer for discretionary trading. Hoagland’s conduct was found by FINRA to be violative of Rule 2010 and National Association of Securities Dealers (NASD) Rule 2510(b).
FINRA Public Disclosure reveals that Hoagland is referenced in three customer initiated investment related disputes pertaining to allegations of his violative conduct during the period in which he was employed by Morgan Stanley and Citigroup Global Markets Inc. Specifically, Hoagland is referenced in a customer initiated investment related arbitration claim which was settled for $183,602.00 in damages based upon accusations that false or misleading statements about hedge funds had been made by the stockbroker when he was associated with Citigroup Global Markets Inc.
On February 15, 2018, another customer initiated investment related complaint in regard to Hoagland’s activities was resolved for $17,044.19 in damages supported by allegations that during the time that Hoagland was associated with Morgan Stanley Smith Barney, unauthorized stock trades were executed in the customer’s account. In addition, Hoagland is the subject of a customer initiated investment related written complaint which was settled for $27,543.56 on July 16, 2018 founded on accusations that he effected a stock purchase for the customer’s account without permission.
Hoagland’s registration with Morgan Stanley has been terminated as of January 18, 2018.
