Laura H. Casey (also known as Laura Aline Hubbard and Laura H. Hubbard), of Rumson, New Jersey, a stockbroker registered with Morgan Stanley, has been fined $7,500.00 and suspended for seven months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Casey engaged in the quantitatively unsuitable trading in the accounts of her Morgan Stanley customers. Letter of Acceptance, Waiver, and Consent No. 2022076162101 (July 17, 2024).
On September 1, 2022, Morgan Stanley filed a Form U5, disclosing that Casey resigned while under internal review. This action prompted FINRA to investigate Casey’s activities.
According to the AWC, between March of 2022 and July of 2022, Casey engaged in trading in exchange-traded funds (ETFs) and other securities in the brokerage accounts of four Morgan Stanley customers who also had advisory accounts. She did not consider the costs of these transactions. Also, in July 2022, she purchased ETFs that required the customers to pay upfront sales charges. She sold these securities days later, causing additional sales charges. She then used the proceeds of those ETF liquidations to make further purchases, leading to more sales charges.
FINRA found that Casey violated Securities Exchange Act of 1934 Rule 15l-1 (Regulation Best Interest) by not acting in the best interest of her customers.
The AQC stated that Casey also engaged in discretionary trading without written authorization, violating FINRA Rules 2010 and 3260. She effected at least 46 trades in seven brokerage accounts without obtaining prior written authorization from her customers or having the securities broker dealer approve the accounts as discretionary.
Casey was associated with Capitol Securities Management Inc. in Rumson, New Jersey from August 17, 2022, to September 19, 2023, and Morgan Stanley in New York, New York from July 2018 to September 1, 2022.
