Arbitrators award Morgan Stanley $6 million from former broker
Finra panel says barred rep Barry Connell must pay compensatory damages.
A Finra arbitration panel has awarded Morgan Stanley $6 million in compensatory damages, to be paid by former broker Barry Connell.
According to the Financial Industry Regulatory Authority Inc., Mr. Connell did not appear at pre-hearing conferences held in January and earlier this month, and said that it had notified Mr. Connell that the hearings would proceed without him present. Finra said the arbitrators determined that the evidence submitted by Morgan Stanley was sufficient to grant the relief requested despite the absence of responses by Mr. Connell.
Morgan Stanley discharged Mr. Connell in November 2016 after allegations against him arose regarding unauthorized withdrawals and transfers of funds from clients’ accounts to third-party payees, which appeared to be for Mr. Connell’s benefit.
A week earlier, the firm settled two claims totaling $6 million in which customers transferred funds from their accounts without authorization. Those actions are part of Mr. Connell’s BrokerCheck record, which also includes a Finra bar in January 2017 for failing to take part in a hearing investigating his actions, as well as a suspension filed in March.
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