FINRA Bars Ex-Morgan Stanley Rep Who Steered Clients to Outside Investments
The ex-broker recommended unapproved outside real estate investments to clients, FINRA said.
An ex-Morgan Stanley broker was barred from the industry by the Financial Industry Regulatory Authority after steering the wirehouse’s clients to real estate investments outside the firm, including through limited liability companies he created, according to FINRA.
Without admitting or denying the findings of FINRA’s investigation into his resignation from Morgan Stanley, Allen Hershberg signed a letter of acceptance, waiver and consent in which he consented to be barred from associating with any FINRA member in all capacities. FINRA signed the letter Friday.
Hershberg entered the securities industry in 1983 when he became registered as a general securities representative through his association with FINRA member Dean Witter Reynolds, according to his report on FINRA’s BrokerCheck website.
He went on to be a broker at Merrill Lynch for 21 years before leaving to join Morgan Stanley in 2005.
In June 2009, Hershberg became registered as a GSR through an association with Morgan Stanley, which did not immediately respond to a request for comment.
On July 27, 2022, Morgan Stanley filed a Form U5 disclosing it allowed Hershberg to resign over “[c]oncerns regarding the representative’s unapproved outside real estate investments, as well as concerns regarding the representative’s recommendation of those same outside real estate investments to Firm clients and others, including through limited liability companies the representative created,” according to a disclosure on his report.
Hershberg didn’t provide FINRA with any information or documents it requested by Oct.14, FINRA said. FINRA staff sent a letter to him requesting, for a second time, that he provide the previously requested information and documents by Oct. 25.
To date, Hershberg still has not provided any of the information or documents requested by FINRA, it added.
Through his actions, Hershberg violated FINRA Rules 8210 and 2010 by failing to provide documents and information requested , FINRA said.
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