Michael Barry Carter of McLean Virginia a stockbroker formerly registered with Morgan Stanley has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Carter failed to comply with FINRA personnel when an investigation was commenced by the regulator into allegations of Carter’s misappropriation of funds from a customer of Morgan Stanley. Letter of Acceptance Waiver and Consent No. 2019063523501 (Sept. 9, 2019).
According to the AWC, on August 27, 2019, FINRA personnel had been made aware from Morgan Stanley that Carter was terminated by the firm founded on accusations of misappropriation of customer funds. The AWC stated that an external tip had also been received by FINRA which initially led the regulator to begin investigating Carter.
The AWC stated that just before Morgan Stanley terminated him, a request was made by FINRA for Carter to turn over information and documentations to the regulator to comply with FINRA Rule 8210. Carter’s response was not provided by the deadline imposed. FINRA stated that another request for Carter’s information and documentation had been made on August 20, 2019.
Carter subsequently hired legal counsel who corresponded with FINRA on August 27, 2019 indicating that Carter understood what FINRA asked him to provide but that the stockbroker would not comply with FINRA’s requests. FINRA determined that Carter’s failure to cooperate in this regard was violative of FINRA Rules 2010 and 8210. Carter was barred by FINRA in all capacities as a result.
