National investment fraud lawyers KlaymanToskes reports barred stockbroker Douglas Marshall McKelvey (CRD# 4502849) has been hit with fraud charges by the SEC for misappropriating over $1.7 million from two elderly brokerage customers who were his relatives.
McKelvey was registered with Morgan Stanley in Southlake, TX from 2009 to 2022, until his bar from acting as a broker by FINRA in August 2022. In addition to the SEC’s fraud charges, the U.S. Attorney’s Office for the Eastern District of Texas announced criminal charges against McKelvey, for which he pleaded guilty.
Investors that suffered losses with Douglas Marshall McKelvey at Morgan Stanley are encouraged to contact attorney Lawrence L. Klayman, Esq. for a free consultation at (888) 997-9956 or lklayman@klaymantoskes.com to discuss recovery options. We do not collect attorneys’ fees unless we obtain a financial recovery for you.
According to an SEC complaint filed on June 7th, 2023, from approximately June 2013 to February 2022, while employed as an investment adviser, McKelvey engaged in more than 300 fraudulent and unauthorized transactions from two customers’ accounts, to make personal payments on credit cards.
McKelvey was registered with Morgan Stanley in Southlake, TX from 2009 to 2022. The complaint discloses that as part of his scheme, McKelvey frequently sold securities in the customers’ accounts in order to generate cash to misappropriate the proceeds of those sales.
The SEC found that “McKelvey misappropriated a total of over $600,000 from Customer A through more than 50 separate unauthorized transfers,” and that “McKelvey misappropriated a total of over $1.1 million from Customer B through more than 250 separate unauthorized transfers,” for a total of $1.7 million.
KlaymanToskes is dedicated to the protection of the rights of elderly investors and their families. Our firm’s representation of elderly and retired investors has included claims for violations of securities industry rules including unsuitable investment advice, negligence, and financial institutions’ failure to supervise their brokers and financial advisors.
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If you or a loved one have experienced elder exploitation, abuse, or fraud, contact attorney Lawrence L. Klayman, Esq. at 888-997-9956 or by email at lklayman@klaymantoskes.com to discuss recovery options. All consultations are free and confidential. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com