National investment fraud lawyers KlaymanToskes reports that former Morgan Stanley broker/financial advisor Miche D. Jean (CRD# 5918186) is being investigated by the Financial Industry Regulatory Authority (“FINRA”) for his refusal to produce investigation-related information regarding his alleged fraudulent conversion of customer funds to pay his personal credit card.
Former customers of Miche D. Jean at Morgan Stanley’s Rockville, MD branch may be entitled to a financial recovery. Affected investors are encouraged to contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lklayman@klaymantoskes.com for a free consultation to discuss recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
Miche D. Jean (CRD# 5918186)
According to FINRA BrokerCheck, Miche D. Jean was previously registered with Morgan Stanley from 2015 to 2020 in Rockville, MD. Jean was discharged from Morgan Stanley on October 16th, 2020 due to allegations regarding his “potential exercise of unauthorized discretion, trading patterns, and communications with clients.” On March 9th, 2021 a previous investor complaint alleged unauthorized trading with respect to exchange traded funds which was settled in favor of the investor for $35,000.
On September 15th, 2022, a regulatory action initiated by the state of Maryland permanently barred Jean from acting as a broker/financial advisor in Maryland. Jean received a cease-and-desist and a fine of $10,000.
Jean was found in violation of sections 11-302(a)(1), (a)(2) and (a)(3), and 11-306 of the Maryland Securities Act for fraudulently initiating four separate automated clearing house (“ACH”) transfers totaling $10,182 from a customer’s brokerage account to pay for his personal Discover credit card. The investigation alleged that Jean failed to disclose his fraudulent acts to his customer, who was unaware of the fraudulent transfers until they were later notified by Morgan Stanley.
On September 26th, 2022, FINRA’s Department of Enforcement entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) with Miche D. Jean, disclosing that the former Morgan Stanley broker/advisor consented to sanctions of a two-month suspension and $10,000 fine in connection with findings that he exercised discretionary power in the accounts of customers without obtaining prior written authorization from the customers or prior written approval by his firm.
According to the AWC, Jean communicated with customers about securities-related business through text messages using his personal cell phone, without the firm’s authorization. Jean allegedly failed to provide these messages to the firm, and purportedly deleted them.
On February 13th, 2023, FINRA opened a second investigation into Jean’s fraudulent conduct and made a preliminary determination to recommend that disciplinary action be brought against him due to alleged violations of FINRA Rules 8210 and 2010 (Provision of Information and Testimony and Standards of Conduct).
Jean entered into his second Letter of Acceptance, Waiver, and Consent (“AWC”) with FINRA’s Department of Enforcement on March 10th, 2023, which disclosed Jean failed to provide information and documents and appear for on-the-record testimony that FINRA requested as part of its pending investigation. The department sent several requests for records of all of Jean’s debit card, credit card, and/or charge accounts.
According to the AWC, “As of the date of the filing of this Complaint, Jean has not provided any information or documents in response to the December 23, January 11, or January 26 information requests.” By failing to produce the documents and information requested by FINRA, Jean violated FINRA Rules 8210 and 2010. The AWC requests that the panel order that one or more of the sanctions provided under FINRA Rule 8310(a), including monetary sanctions, be imposed.
Under FINRA Rule 8210, all brokerage firms and registered financial professionals are required to provide information, documents, and testimony upon regulators’ requests.
A violation of FINRA Rule 8210 is also a violation of FINRA Rule 2010, which requires brokerage firms and their registered representatives to “observe high standards of commercial honor and just and equitable principles of trade.”
Investors that suffered losses with Miche D. Jean at Morgan Stanley’s Rockville, MD branch are encouraged to contact attorney Lawrence L. Klayman, Esq. immediately at (888) 997-9956 or lklayman@klaymantoskes.com for a free consultation to discuss recovery options.
Every case is taken on a contingency basis, meaning 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