Miche D. Jean of Rockville, Maryland, a stockbroker registered with Morgan Stanley, is the subject of an enforcement action initiated by FINRA in which the regulator is seeking sanctions against Jean based upon allegations that Jean failed to provide information and documents and failed to testify during the time that FINRA investigated the stockbroker for possible violations of FINRA rules. Department of Enforcement v. Miche D. Jean, Disciplinary Proceeding No. 2022076975901 (March 10, 2023).
According to the Complaint, on November 12, 2020, a Uniform Termination Notice for Securities Industry Registration (Form U5) was submitted to FINRA by Morgan Stanley. That Form U5 notes that on October 16, 2020, Morgan Stanley discharged Jean based upon allegations that Jean engaged in unauthorized trading. The securities broker dealer also expressed concerns regarding his trading strategy and his communications with customers relating to transactions. Morgan Stanley later supplemented the Form U5 on March 30, 2021, to relay that a customer alleged that Jean engaged in unauthorized trading in exchange traded funds.
FINRA also alleges in the Complaint that Jean has been barred as a stockbroker in the state of Maryland because Jean committed fraud. Maryland Consent Order No. 2022-0160 (November 15, 2022). The stockbroker allegedly fraudulently initiated transfers from a customer’s Morgan Stanley brokerage account to pay down Jean’s credit cards and failed to disclose his activities to the customer.
With the receipt of Morgan Stanley’s information, FINRA’s investigation focused on whether Jean misappropriated or converted customer funds. On December 23, 2022, FINRA asked Jean to provide information and documents. That request prompted Jean to disclose debit cards, credit cards, and other accounts as well as account statements. Jean confirmed that she received FINRA’s request. However, Jean allegedly failed to respond by the deadline. The regulator states that as of the date of filing the Complaint, no information or documents were provided by Jean in response to its requests.
FINRA also alleges in the Complaint that Jean failed to testify on January 19, 2023. The regulator states that it sent Jean a request on December 23, 2023. That request went unanswered. FINRA sent a second request that Jean failed to respond to as well. Therefore, FINRA states that Jean violated FINRA Rules 2010 and 8210.
FINRA Public Disclosure shows that Jean has also been fined and suspended by FINRA because Jean engaged in discretionary trading. Letter of Acceptance, Waiver, and Consent No. 2020068648601 (September 26, 2022). According to the AWC, from February of 2020 and June of 2020, Jean engaged in discretionary trading in the accounts of two Morgan Stanley customers. Neither the customers nor the securities broker dealer authorized Jean’s discretionary trading. Therefore, he violated FINRA Rules 2010 and 3260(b). The regulator also found that Jean violated FINRA Rules 2010 and 4511 by privately communicating with customers concerning securities business.
FINRA Public Disclosure shows that Jean was 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 unauthorized trading in exchange traded funds when Jean was associated with Morgan Stanley.
Jean’s registration with Morgan Stanley was terminated on November 12, 2020.
