Alex Williams (CRD# 2646185), a broker and investment adviser based in New York, has received a pending customer complaint. According...Read More
Aaron Sheehy: Ex-NYC Broker Suspended Over Discretion Allegations
Former Morgan Stanley broker Aaron Sheehy (CRD# 1847401) has been sanctioned by the Financial Industry Regulatory Authority in connection to allegations he improperly exercised discretion in a customer’s account. Formerly a representative at the firm’s New York City office, Sheehy was issued a 20-day suspension and a fine of $5,000.
According to a Letter of Acceptance, Waiver and Consent (No. 2018057649201) dated January 2020, Aaron Sheehy was associated with Morgan Stanley as a General Securities Representative, General Securities Principal, and Registered Options Principal from June 2009 until March 2018, when the firm filed notice of his discharge over concerns he accepted orders from an unauthorized family member of an account-holder, “and then provided inaccurate information regarding the activity.” FINRA’s findings go on to state that from September to November 2017 he exercised discretion in a client’s account “by accepting, on at least ten occasions, trade instructions from the customer’s son, an unauthorized third party.” According to FINRA, the client had not provided Sheehy with written authorization to effect discretionary trades by taking instructions from his son; nor had the firm, Morgan Stanley, approved of the account in question for discretionary trading. FINRA states that Sheehy “mistakenly believed” the son had been made an authorized party on the account, even though the client had not made his son such a party. FINRA’s findings state finally that when initially questioned about the matter by Morgan Stanley, “Sheehy was not forthcoming about his misconduct.” As a result of the foregoing alleged activities, Sheehy was issued a 20-day suspension from associating with any FINRA member firm in any and all capacities. He was also ordered to pay a fine of $5,000.
Aaron Sheehy is currently not registered as a broker. His previous registrations include Morgan Stanley, Citigroup Global Markets, and Salomon Brothers. He has passed seven securities industry qualifying examinations and his BrokerCheck report lists zero state securities licenses. (Information current as of May 20, 2020.)