The US Securities and Exchange Commission is investigating Westlake Village, California stockbroker Thomas Swan (CRD# 1698430) over alleged violations of...Read More
Stewart Malloy: FINRA Bars Former Morgan Stanley Broker
A disciplinary action taken by the Financial Industry Regulatory Authority against former Riverhead, New York broker Stewart Malloy (CRD# 1029931) barred him after finding he appeared to appear and provide FINRA-requested testimony concerning customer complaints and other allegations against him. A former representative of Morgan Stanley, Malloy was barred from acting as a broker or otherwise associating with a broker-dealer firm.
According to a default decision by FINRA (No. 2016051299201) dated December 2018, FINRA twice requested Stewart Malloy appear to provide an on-the-record interview in connection with its investigation into “potential unsuitable and unauthorized trades in customer accounts,” and Malloy did not comply with the requests. Finding this conduct to constitute violation of FINRA Rules 8210 and 2010, FINRA barred him from associating with any FINRA member in any capacity.
Stewart Malloy was previously suspended by FINRA, in 2015, following allegations he engaged in discretionary trading in a customer account without receiving prior written authorization from the customers and his firm’s written acceptance of the account in question as discretionary. He was suspended for 30 days and ordered to pay a fine of $5,000.
Stewart Malloy’s disclosure records also list six customer complaints against him that reached settlements.
One such complaint, filed in 2016, alleged that as a representative of Morgan Stanley Smith Barney, he recommended unsuitable investments. The complaint reached a settlement of $300,000.
A complaint filed in 2015 alleged that as a representative of Morgan Stanley, he purchased unsuitable energy stocks in his customer’s account. The complaint reached a settlement of $60,000.
A 2013 complaint alleged that as a representative of Morgan Stanley, Malloy engaged in unauthorized trading. The complaint reached a settlement of of $28,000.
Stewart Malloy is not currently registered as a broker or investment advisor. His employment history includes Morgan Stanley in Riverhead, New York, Morgan Stanley & Company, Morgan Stanley DW, and Merrill Lynch. He currently holds no state licenses and has passed five securities industry qualification examinations.