Sonn Law Group is investigating claims regarding Stewart Clinton Malloy (CRD #1029931, Bellport, New York). Malloy recently submitted an AWC in which he was fined $5,000 and suspended from association with any FINRA member firm in any capacity for 30 business days. See FINRA Case #2013035953801. Malloy was associated with Morgan Stanley from September 1996 until October 2015.
FINRA found that Malloy effected transactions in the account of customers without having obtained prior written authorization from the customers and written acceptance of the account as discretionary by Morgan Stanley. FINRA also found that Malloy falsely stated on a compliance questionnaire that he had no discretionary accounts. In entering into the AWC, Malloy neither admitted nor denied FINRA’s findings.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Morgan Stanley be liable for investment or other losses suffered by Malloy’s customers.
If you were a client of Stewart Clinton Malloy or Morgan Stanley, and have suffered investment losses or financial irregularities, please contact Sonn Law Group to explore your legal options. Sonn Law Group is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies. To learn more, please call us at 844-689-5754 or complete our “contact form.”