Miche D. Jean of Rockville, Maryland, a stockbroker registered with Morgan Stanley, has been fined $10,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity for two months based upon allegations that Jean engaged in unauthorized trading in his customer accounts. FINRA Enforcement (AWC) No. 2020068648601 (Sept. 26, 2022).
According to the AWC, between February 2020 and June 2020, Jean exercised discretion in the accounts of two customers without securing prior written approval from the customers or his firm while Jean was associated with Morgan Stanley. Specifically, Jean executed a minimum of 56 trades in the accounts of two firm customers without talking to the customers prior to the transactions. Jean was prohibited by Morgan Stanley from exercising discretion in brokerage accounts, and Jean did not have authorization from the customers to exercise discretion in their accounts.
Jean also communicated with customers using his personal cell phone from at least December 2019 through October 2020. Morgan Stanley’s supervisory procedures dictated that all communication with firm customers must be done through firm-approved systems. As a result of Jean not using firm-approved systems, he caused Morgan Stanley to maintain incomplete books and records. Jean violated FINRA Rules 2010, 3260(b), and 4511.
FINRA Public Disclosure shows that Jean is also referenced in a customer initiated investment related complaint that was settled on March 9, 2021 for $35,000.00 in damages based upon allegations that Jean engaged in the unauthorized trading of exchange traded funds during the period he was associated with Morgan Stanley Smith Barney LLC.
On November 12, 2020, Morgan Stanley discharged Jean based upon allegations that engaged in unauthorized trading. He was associated with Morgan Stanley since December 21, 2015.
