Samuel Wylie Sloane of Fort Worth, Texas, a registered representative with Morgan Stanley, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any and all capacities after consenting to findings that he had failed to comply with a FINRA investigation into allegations of Sloane’s conversion of customer funds. Letter of Acceptance, Waiver and Consent, No. 20150478979-01 (Dec. 14, 2015).
According to the AWC, on November 25, 2015, during which time that FINRA was investigating allegations that Sloane had converted a customer’s trust assets while serving in the capacity as trustee, FINRA had requested that Sloane provide information and documents by December 4, 2015, pursuant to Rule 8210.
The AWC reported that Sloane had e-mailed FINRA on December 1, 2015, indicating that he had received FINRA’s request for information and documentation, but that he would not be providing such at any point in time. FINRA found that by failing to cooperate with their request for information and documentation, Sloane had violated FINRA Rules 8210 and 2010.
FINRA registered representatives like Sloane who do not cooperate with FINRA’s investigations often face a permanent bar from practicing in the securities industry as such lack of cooperation violates FINRA’s Rule 8210 – requiring that no member or person shall fail to provide information or testimony or permit an inspection and copying of books, records, or accounts pursuant to the rule. FINRA typically accompanies a Rule 8210 violation with a Rule 2010 violation when individuals, according to FINRA, do not appear to observe high standards for commercial honor and just and just and equitable principles of trade.
Firms and individuals, quite obviously, are prohibited from unauthorized use or borrowing of a customer’s funds or securities, forgery, non-disclosure or misstatement of material facts, and manipulations and various deceptions. These activities are also subject to the civil and criminal laws and sanctions of federal and state governments.
Public disclosure records reveal that on October 15, 2015, Sloane became subject to a pending customer dispute, in which a customer is requesting $1,800,000 after the customer’s attorney alleged on behalf of a beneficiary of a trust that Sloane, while serving as trustee, took assets from a trust via withdrawals and fees. On October 27, 2015, Morgan Stanley terminated Sloane in connection with the aforementioned conduct.
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