Former Morgan Stanley And First Financial Equity Financial Advisor, Daniel Levine, Barred From The Securities Industry By FINRA
Daniel Levine is a former Financial Advisor at Morgan Stanley in Greenwood Village, Colorado. After being terminated by Morgan Stanley in August 2018, Daniel Levine briefly joined First Financial Equity Corp. Robert Mehlin, Jr. has been in the securities industry since 1997 and previously worked at UBS Financial Services and Merrill Lynch.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on January 8, 2019, FINRA barred Daniel Levine from associating with any securities broker-dealer after “ he failed to provide FINRA with requested documents and information in connection with its investigation into allegations that he engaged in undisclosed outside business activities, solicited a senior firm customer to borrow funds for an outside business activity, and executed unauthorized trades, among other alleged conduct.”
Participation in unlawful outside business activities is known as “selling away.” The Financial Industry Regulatory Authority (FINRA) strictly prohibits financial advisors from “selling away” or selling securities and investments to clients that are not offered by the brokerage firm with which they are employed. For example, it is illegal and a violation of industry rules for a financial advisor to recommend or even suggest that a client invest in the financial advisor’s own business or a business operated by his or her friends or family. It is not necessary that the financial advisor earn any compensation for recommending an outside investment.
The purpose behind this prohibition is to ensure that a financial advisor only offers to sell securities that have been vetted by his or her employer brokerage firm through a rigorous due diligence process. Most brokerage firms have an approved list of investments, products, and research that can be provided or made available to clients. Any deviation by the financial advisor from the approved product list may constitute selling away.
For a copy of the FINRA sanction, click https://www.finra.org/sites/default/files/fda_documents/2018059393201%20Daniel%20Todd%20Levine%20CRD%202874319%20AWC%20va.pdf.
In March 2019, the Colorado Division of Securities followed suit, barring Daniel Levine from applying for a securities license in Colordado for allegedly selling participation interests in a bitcoin operation involving his brother.
The above-referenced misconduct led to Daniel Levine’s termination from both Morgan Stanley and First Financial Equity Corp.
For a copy of Daniel Levine’s CRD, click https://brokercheck.finra.org/individual/summary/2874319
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at 800.931.8452 or by email at firstname.lastname@example.org.
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