Former Morgan Stanley broker David Olson has been barred from the securities industry by FINRA for failing to provide documents connected to an investigation regarding allegations of engaging in undisclosed outside business activities.
According to his FINRA report, Olson has been the subject of eight customer disputes, dating back to 1991. Allegations include misrepresentation of material facts, unsuitable investment recommendations, unsuitable options transactions, and excessive trading.
Olson worked for Morgan Stanley from 2010 to 2016. In December 2016, Morgan Stanley terminated Olson for allegedly engaging in outside business activity that he had not disclosed to the firm and soliciting a loan from a customer in connection for that venture.
Did You Lose Money While Working with David Olson?
Under FINRA rules, brokers are prohibited from participating in outside business activities outside the scope of their relationship with their member firm without first providing appropriate written notice to their firm.
The following types of conduct, among other things, are specifically defined as outside business activities according to FINRA.
- Employment at another company
- Working as an independent contractor or sole proprietor in any capacity
- Serving as a partner, director or officer on any board
- Accepting compensation, in any form, for business activity
- Reasonably expecting to receive compensation for their role in activities outside the firm in the future
We Have Recovered Over
$350 Million for Our Clients Nationwide.
While brokers must provide adequate disclosure of their outside business activities, it is up to their brokerage firm to ensure that brokers are not compromising their clients’ interests through outside business activities. Member firms may be held liable for the financial losses incurred by investors when outside business activities are not properly monitored and supervised.
Recovering Losses Caused by Investment Misconduct.
