Lance E. Slater, of Mt. Laurel, New Jersey, a stockbroker with Morgan Stanley, was barred from associating with any Financial Industry Regulatory Authority (FINRA) member after consenting to findings that he failed to cooperate in a FINRA investigation into allegations of unauthorized borrowing of funds from a firm customer. Letter of Acceptance, Waiver and Consent, No. 20150447395-01 (Mar. 18, 2016).
According to the AWC, FINRA launched an investigation into Slater on December 31, 2015, where FINRA requested documents and information from Slater, per FINRA Rule 8210, pertaining to allegations that Slater received an unauthorized loan from a customer.
The AWC stated that Slater’s counsel contacted FINRA and sought two extensions for responding to FINRA’s request for documentation and information. FINRA approved of such extensions and imposed a deadline of January 21, 2016. Apparently, Slater’s counsel informed FINRA on January 21, 2016, that Slater would not be providing FINRA with information and documentation at any point. FINRA found that Slater violated FINRA Rules 8210 and 2010 as a result of failing to cooperate with their requests, leading Slater to be permanently barred.
Slater has been with three different firms since 2009.
According to Court records, in 2008, Ms. Slater filed for divorce, and the parties were divorced on June 26, 2008, by final judgment of divorce incorporating a letter opinion setting forth the court’s findings of facts and conclusions of law. Mr. Slater was ordered to pay child support in the amount of $2,197 per month and alimony of $10,833 per month, based on plaintiff’s imputed annual income of $7,436 and his income of $360,000 annually.
Slater’s good will or “book of business” as a stockbroker was determined to be subject to equitable distribution and to have a value of $224,298 based on the testimony of a forensic expert at trial. The trial court set off Ms. Slater’s interest in defendant’s “book of business” against Mr. Slater’s interest in the former marital residence by way of equitable distribution.
At the time of the divorce and through the spring of 2009, Mr. Slater was employed as a stockbroker with Wachovia Securities (Wachovia). He told the court that he was terminated from Wachovia when it was taken over by the FDIC and purchased by Wells Fargo. In March 2009, Slater had secured employment with UBS Financial Services, Inc. (UBS), and in January 2014, he landed at Morgan Stanley and was probably given another loan.
Desperate times lead to desperate measures.
Public disclosure records via FINRA’s BrokerCheck reveal that Slater has been subject to four disclosure incidents. On September 22, 2015, Slater became subject to a pending customer dispute, in which a customer alleged excessive trading and unsuitable recommendations. On October 9, 2015, a customer lodged a complaint against Slater, alleging that Slater borrowed $210,000.00 from the client, where Slater subsequently informed the client that he cannot pay the client back. The customer also alleged excessive trading and unsuitability.
On October 9, 2015, Morgan Stanley terminated Slater amid allegations that Slater had failed to comply with the firm’s guidance concerning sales activity and participated in an unauthorized loan transaction with a customer.
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