Most stockbrokers get barred for failure to cooperate, but not this one.
Jeffrey E. Rodgers, of Bend, Oregon, a stockbroker with Morgan Stanley, was suspended for two years from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity per an Order Accepting Offer of Settlement containing findings that Rodgers engaged in unauthorized outside business activities and obstructed a FINRA investigation into his misconduct. Department of Enforcement v. Rodgers, No. 2013036836801 (Mar. 24, 2016).
According to the Order, on May 2, 2013, Morgan Stanley reported to FINRA, via Form U5, that Rodgers was terminated amid allegations of receiving personal loans in 2012 from a firm client, BU, without approval from the firm. The Order indicated that Morgan Stanley later informed FINRA on October 1, 2013, that Rodgers received a customer complaint on September 19, 2013, alleging that Rodgers never repaid BU for the funds that Rodgers accepted from BU pursuant to the loan.
The Order stated that BU, who held a brokerage account with Morgan Stanley, provided Rodgers with $33,800.00 in loans over the course of January 2011 through December 2013. Rodgers reportedly accepted the loans despite his firm’s procedures prohibiting such. FINRA found Rodgers to be in violation of FINRA Rules 2010 and 3240 in this regard.
The Order additionally indicated that Rodgers failed to gain approval for outside business activities that Rodgers took part in from March 2012 through April 2013, where Rodgers served as a consultant, software developer, and salesman for an information technology firm, NW. Rodgers reportedly gained compensation for such activities; yet failed to inform Morgan Stanley prior to participating. FINRA found Rodgers’ conduct to be in violation of FINRA Rules 2010 and 3270.
Further, the Order stated that Rodgers had misstated to Morgan Stanley in 2011 and 2012 that he never borrowed money from a firm client. Apparently, Rodgers also misstated to his firm that he was not participating in outside business activities requiring the proper disclosure to his firm.
According to the Order, FINRA sent Rodgers six requests for information and documentation, per Rule 8210, pertaining to the aforementioned allegations of misconduct. Apparently, in nearly every occasion, Rodgers did not respond to FINRA’s requests. The Order stated that FINRA also requested, on numerous occasions, that Rodgers provide on-the-record testimony, pursuant to Rule 8210, in connection with his misconduct.
Rodgers apparently provided minimal testimony at times, and refused to cooperate further when requested to do so by FINRA. FINRA ultimately found Rodgers to have violated FINRA Rules 2010 and 8210.
Public disclosure records reveal that Rodgers has been subject to three disclosure incidents in connection with his aforementioned conduct, including a customer dispute which was settled for $10,500.00 amid allegations of Rodgers’ borrowing from a customer and ultimate failure to re-pay funds when due.
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