Karen McKinley (also known as Karen Ann Boggess) of Manchester New Hampshire a stockbroker formerly employed by Morgan Stanley is the subject of administrative proceedings initiated by Securities and Exchange Commission (SEC) in which the regulator is determining whether to bar McKinley from being a stockbroker or investment advisor based on McKinley pleading guilty to stealing an elderly customer’s assets and committing elder abuse. In the Matter of Karen McKinley Administrative Proceeding No. 3-19412 (Sept. 3, 2019).
On October 11, 2018, McKinley pleaded guilty to four counts of financial exploitation of an elderly, disabled or impaired adult, and she pleaded guilty to seven counts of theft. Between 2013 and 2016, she apparently stole nearly $300,00.00 from an elderly customer’s brokerage account. Criminal Action No. 2017-CR-02034. She was sentenced to up to fifteen years behind bars.
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that McKinley has been barred from associating with any FINRA member in any capacity based upon findings of her failure to provide information and documents requested by the regulator during the time that she was investigated for effecting unauthorized trades in Morgan Stanley customer accounts. Letter of Acceptance Waiver and Consent No. 2016051282901 (Nov. 30, 2016).
McKinley is also referenced in a customer initiated investment related complaint which was settled on November 22, 2017 for $16,951.58 in damages supported by allegations that the customer’s funds had been misappropriated by McKinley when she was associated with Morgan Stanley.
Morgan Stanley discharged McKinley on August 15, 2016 based upon accusations that trades were placed in nondiscretionary accounts by McKinley without receiving customer confirmations beforehand.
