(FINRA Case #2016049321301)
Terry Lee McCoy (CRD #1476696, New Port Richey, Florida) – An AWC (Accept, Waiver, & Consent) was issued in which McCoy was assessed a deferred fine of $75,000 and barred from association with any FINRA member in any principal capacity.
Without admitting or denying the findings, McCoy consented to the sanctions and to the entry of findings that he failed to appropriately supervise the sales practices of his member firm’s registered representatives.
The findings stated that the representatives engaged in excessive and unsuitable trading and used discretion without proper authorization in a customer’s accounts who was 79-years-old and suffered from severe physical disabilities. McCoy was branch manager of Morgan Stanley (CRD# 149777) Palm Harbor, Florida branch. Under the firm’s branch manager’s supervisory manual, McCoy was responsible for supervising the business conducted in his branch and the activities of each employee (registered or unregistered) working in his branch.
The representatives were under McCoy’s supervision. As a result of the excessive trading, the customer’s accounts generated commissions of over $9 million. McCoy’s supervision of the representatives and the transactions in the accounts were unreasonable in that he failed to adequately follow-up on multiple red flags. McCoy failed to identify excessive and unsuitable trading activity in the customer’s accounts. McCoy failed to detect the use of discretion by these representatives in the accounts, despite his routine meetings with the customer.
If you feel you have been misled by a Broker or Brokerage Firm and wish to discuss legal action, please contact Darren Blum at 1-877-786-2552 (1-877-STOCK LAW), www.stockattorneys.com for a free consultation.