The Financial Industry Regulatory Authority (FINRA) recently barred former Morgan Stanley Broker Michael Ralby of Boca Raton, FL for declining to participate in an investigation into allegations that he accepted loans from clients. Under FINRA rules, brokers cannot accept loans from customers without prior authorization from their brokerage firms. And, under FINRA rules, brokers must comply with FINRA’s investigations.
After working as registered representative for Morgan Stanley from 2013 to 2018, the firm terminated Ralby’s association on January 9, 2018. According to his FINRA BrokerCheck report, he has been the subject of six customer complaints, two of which are currently pending. The pending complaints both allege that Ralby made misrepresentations regarding the risk level of investments he recommended.
The Financial Industry Regulatory Authority’s decision to bar Ralby came after the broker turned down requests to take part in the FINRA investigation into the allegations against him.
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Under FINRA rules and regulations, financial advisors are not allowed to accept loans from customers without receiving prior, written authorization from their brokerage firms. Brokerage firms are required to adequately supervise the actions of their advisors and take steps to ensure compliance with industry rules and standards. Brokerage firms may be held liable for the damages caused by the actions of their brokers if the brokerage firm did not properly supervise the offending broker.
If you lost money while investing with Michael Ralby, Meyer Wilson would like to hear from you. Give our investment fraud attorneys a call at (888) 390-6491 to schedule a free case evaluation today.
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