Finra has suspended and fined a former Morgan Stanley financial advisor over allegations of unauthorized trading, the industry’s self-regulator says.
In 2014, John Hoagland allegedly made one unauthorized trade for $34,451 in the account of a customer identified only as “SP,” according to a letter of acceptance, waiver and consent published by Finra.
Then in 2018 Hoagland allegedly made nine unauthorized trades totaling $99,171 in the account of a customer identified as “EB,” the regulator says.
And from Sept. 1 through Nov. 30, 2017, Hoagland allegedly exercised discretion and made 96 trades in the accounts of five other customers that Morgan Stanley hadn’t approved for discretionary trading, according to the letter of acceptance.
Hoagland joined the financial services industry in 1970 and came to Morgan Stanley in 2009, according to his BrokerCheck profile.
He resigned voluntarily from the wirehouse in December 2017 but in his Form U5 filed in January 2018, Morgan Stanley wrote that “the firm believes in at least some instances, that he had executed some transactions in non-discretionary client accounts without speaking with the clients beforehand in all cases,” Finra says.
Hoagland has three customer disputes on his record: one from 2010 alleging he had passed along erroneous information to a client about a private placement, settled for a little under $184,000; two from 2018 alleging unauthorized trading, settled for a total of around $44,600, according to BrokerCheck.
In March and July of 2018, Morgan Stanley amended Hoagland’s Form U5 to report the two complaints alleging unauthorized trading, according to the regulator.
He consented to a $5,000 fine and a three-month suspension without admitting or denying Finra’s findings, according to the letter of acceptance.
Hoagland never registered with another firm after leaving Morgan Stanley, Finra says.