• October 14, 2018
• Morgan Stanley
• Broker Discipline
• Sanction

The Wolper Law Firm, P.A. is currently investigating claims against John Halsey Buck III, a former Financial Advisor at Morgan Stanley in Boston, Mass. John Halsey Buck III has been in the securities industry since the 1970s and previously worked at UBS and Wachovia.

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on January 28, 2018, Morgan Stanley discharged John Halsey Buck III for “ALLEGATIONS ABOUT THE TIMING AND COMPLETENESS OF DISCLOSURES TO THE FIRM REGARDING INVOLVEMENT IN PRIVATE INVESTMENTS OUTSIDE THE FIRM.”

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.

Subsequent to his employment termination, FINRA initiated an investigation. On October 11, FINRA sanctioned John Halsey Buck II for failing to cooperate in an investigation initiated by FINRA regarding the aforementioned private securities transactions. Specifically, the FINRA sanction states: “On August 31, 2018, in connection with its investigation into Respondent’s potential involvement in certain unapproved private securities transactions.” John Halsey Buck III failed to cooperate and, accordingly, was sanctioned.

A For a full copy of John Halsey Buck III’s FINRA sanction, click https://www.finra.org/sites/default/files/fda_documents/2018057629701%20John%20Halsey%20Buck%20III%20CRD%2034383%20AWC%20sl.pdf

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.

If you or someone you know was a customer John Halsey Buck III and you experienced investment losses, please contact the Wolper Law Firm, P.A. at 800.931.8452 or by email at mwolper@wolperlawfirm.com to discuss your specific situation and the legal options available. The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration.

Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., 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.