Timothy Thomas Gibbons of New Orleans, Louisiana, a stockbroker formerly registered with Morgan Stanley, has been fined $20,000.00 and suspended for eighteen months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he made unsuitable investment recommendations to elderly customers. Letter of Acceptance, Waiver and Consent, No. 2015047910601 (Nov. 16, 2017).
According to the AWC, from January 2014 to December of 2014, investment recommendations were made by Gibbons to five of the firm’s retired and elderly customers aged seventy-two to ninety. The customers apparently received recommendations for sixty-five percent to seventy-nine percent of their accounts to be over-concentrated in one speculative energy sector investment. FINRA stated that the recommendations were not suitable in consideration of the customers’ financial profiles, objectives for investing, tolerances for risk and ages.
The AWC also stated that customers collectively incurred more than $960,000.00 in unrealized and realized investment losses. Consequently, FINRA found Gibbons’ conduct violative of FINRA Rules 2010, and 2111(a), and ordered him to pay restitution totaling $716,749.78.
FINRA Public Disclosure reveals that a customer filed an investment related civil action involving Gibbons’ conduct, in which the customer sought damages supported by allegations that while Gibbons was a financial advisor with Morgan Stanley Smith barney, he effected equity transactions in the customer’s account that were not suitable for the customer. Case 2015-10447 (Nov. 12, 2015).
Gibbons’ registration with Morgan Stanley was terminated as of April 22, 2015.
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