Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Regulation and Compliance > Federal Regulation > FINRA

FINRA Suspends Ex-Morgan Stanley Rep Who Took Client Info to New Firm

Your article was successfully shared with the contacts you provided.

The Financial Industry Regulatory Authority suspended a former Morgan Stanley rep for 10 days and fined him $5,000 for improperly removing nonpublic personal client information from the firm without the clients’ knowledge or consent, right before he left the firm to work for Raymond James, according to FINRA.

Without admitting or denying the findings, Joseph Dwayne Olheiser signed a letter of acceptance, waiver and consent on Nov. 4 in which he agreed to the fine and to be suspended from associating with any FINRA member firm in any capacity for 10 business days. FINRA accepted the letter Nov. 25.

Morgan Stanley and Raymond James declined to comment Wednesday. Sylvia M. Scott, a partner at Los Angeles law firm Scott & Allayee, who represented Olheiser in the dispute with FINRA, did not immediately respond to a request for comment.

More Details

In April 2016, Olheiser joined Morgan Stanley as a general securities representative, according to FINRA. In February 2019, he voluntarily terminated his association with Morgan Stanley and joined Raymond James Financial Services as a rep, FINRA noted.

“In February 2019, in anticipation of joining Raymond James, Olheiser improperly removed from Morgan Stanley his customers’ nonpublic personal information, which he had received from Morgan Stanley as part of his employment as a registered representative,” FINRA alleged in the AWC letter.

“Olheiser faxed to Raymond James the client profile information” for 20 Morgan Stanley clients, “without their knowledge or consent, in order to open accounts at Raymond James,” according to FINRA.

Those Morgan Stanley client profiles “included detailed information that is covered by Regulation S-P, such as account numbers, account objectives, investment time horizons, risk tolerances and account balances,” according to FINRA, which noted Olheiser “improperly possessed this information after leaving Morgan Stanley.”

As a result of his actions, Olheiser violated FINRA Rule 2010 (governing standards of commercial honor and principles of trade) by causing Morgan Stanley to violate Regulation S-P, according to FINRA.

According to a May 17, 2019, disclosure in his report on FINRA’s BrokerCheck website, Raymond James says it “terminated” him for “improperly sharing customer information from prior employer.” He is currently a rep for Cabot Lodge Securities, according to BrokerCheck.

Details in the case are similar to those of Michael R. Jeppson, who FINRA recently fined $5,000 and suspended for 15 days for allegedly improperly emailing himself Merrill Lynch clients’ personal info 161 times before he left that firm for Raymond James.

— Related on ThinkAdvisor:


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.