Sonn Law Group is investigating claims regarding Debra Kaye Lyman (CRD #1100820, West Jordan, Utah), also known as Debra Kaye Browning. Lyman recently submitted an AWC in which she was assessed a deferred fine of $10,000 and suspended from association with any FINRA member in any capacity for three months. See FINRA Case #2014039874701. Lyman was associated with Morgan Stanley from June 2009 until her termination in December 2013. According to the Form U-5 filed by Morgan Stanley to terminate Lyman’s registration, Lyman was discharged because she “exercised discretion in three client accounts with the clients’ knowledge, but without obtaining written authorization.”
FINRA found that Lyman effected discretionary transactions in customer accounts without obtaining the customers’ prior written authorization and without having Morgan Stanley accept the accounts as discretionary accounts. FINRA also found that Morgan Stanley had previously reprimanded Lyman for engaging in similar misconduct. Additionally, Lyman completed a Firm Employee Sales Questionnaire wherein she inaccurately represented that she had not transacted business on a discretionary basis for any accounts.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Your broker is prohibited from entering an order with your express, detailed permission unless you have granted your broker or the firm written discretionary authority. Verbal authority to place trades in your account without your express, detailed permission is impermissible. Therefore, Morgan Stanley may be liable for investment or other losses suffered by Lyman’s customers.
If you were a client of Lyman 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.”