Kevin Scott Gunnip of Southlake Texas a stockbroker formerly employed by Morgan Stanley has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Gunnip neglected to provide testimony before FINRA personnel when the stockbroker was investigated for allegedly effecting unsuitable trades in customer accounts. Letter of Acceptance Waiver and Consent No. 2017055476201 (Sept. 18, 2019).
According to the AWC, an investigation had been commenced by FINRA in 2018 in reference to Gunnip’s inappropriate trading of long-term securities on a short-term basis. In this respect, Gunnip was instructed by FINRA to provide recorded testimony before the regulator under Rule 8210. FINRA received confirmation from Gunnip’s legal counsel that the stockbroker understood the nature of the regulator’s request but declined to cooperate in the investigation into his allegedly improper trading. FINRA determined that Gunnip’s failure to testify in the investigation was violative of FINRA Rules 2010 and 8210.
FINRA Public Disclosure reveals that Gunnip has been referenced in three customer initiated investment related disputes which pertain to accusations of his misconduct when he was associated with Morgan Stanley. In particular, on December 22, 2016, a customer initiated investment related complaint concerning Gunnip’s conduct was resolved for $150,000.00 in damages founded on allegations that stock recommendations made to the customer by Gunnip were not suitable for the customer.
Gunnip is also referenced in a customer initiated investment related written complaint which was settled for $145,000.00 in damages on October 9, 2017 based upon accusations of unsuitable stock and corporate debt investments being traded in the customer’s account . Another customer initiated investment related arbitration claim involving Gunnip’s activities was resolved for $614,000.00 in damages supported by allegations that during the period in which Gunnip was associated with Morgan Stanley, stock and corporate debt trades were executed in the customer’s account in an excessive manner resulting in unwarranted losses. FINRA Arbitration No. 17-02007 (Feb. 7, 2018).
FINRA Public Disclosure confirms that Gunnip was terminated from Morgan Stanley Smith Barney on February 23, 2018 founded on accusations that the stockbroker effected unauthorized trades in customer accounts.
