Terry Lee McCoy (CRD#: 1476696) is a previously registered broker and investment advisor. From 2009 to 2016, Mr. McCoy was employed at Morgan Stanley in Palm Harbor, Florida. On June 15th, 2018, FINRA indefinitely barred Terry Lee McCoy from the securities industry after an investigation into potential wrongdoing. Here, our investment fraud lawyers review the findings against this broker. For full details, please refer to Disciplinary Action No. 2016049321301.
Failure to Supervise and Excessive Trading: Terry Lee McCoy
From 2011 to 2012, Mr. McCoy was the branch manager of the Morgan Stanley office in Palm Harbor, Florida. During this time, McCoy has a professional duty to supervise multiple representatives. According to FINRA, two unnamed representatives engaged in excessive trading (churning) and made unsuitable transactions within the account of a high net worth Morgan Stanley customer. Notably, the representatives used unauthorized discretion within the account despite the fact that the customer held a non-discretionary brokerage account with Morgan Stanley.
FINRA alleges that Mr. McCoy’s negligence and failure to supervise the representatives allowed the misconduct to occur and persist. FINRA believes that it is unreasonable that Mr. McCoy failed to pick up on several red flags that suggested that the misconduct was taking place. Without admitting to or denying wrongdoing, Terry Lee McCoy consented to the proposed penalties, which included a $75,000 fine and an indefinite bar from the securities industry.
Were You a Victim of Broker Churning?
We can help. At Sonn Law Group, our top-rated securities fraud lawyers have considerable experience with excessive trading claims. If you sustained major losses due to churning, please contact us today for a free claim evaluation.
Disclaimer: This article contains opinions and NOT statements of fact in any way whatsoever. The information here is general information that should not be taken as legal advice. NO attorney-client relationship is established between you and our attorneys by reading this article. This article is attorney advertising and should not be used as a substitute for legal advice from a qualified securities lawyer.