FINRA

Without admitting or denying the findings, McCoy consented to the sanctions and to the entry of findings that he failed to appropriately supervise the sales practices of his member firm's registered representatives. The findings stated that the representatives engaged in excessive and unsuitable trading and used discretion without proper authorization in the accounts of a customer who was 79-years-old and suffered from severe physical disabilities. McCoy was branch manager of the firm's Palm Harbor, Florida branch. Under the firm's branch managers supervisory manual, McCoy was responsible for supervising the business conducted in his branch and the activities of each employee (registered or unregistered) working in his branch. The concerned representatives were registered representatives under McCoy's supervision. As a result of the excessive trading, the customer's accounts generated commissions of over $9 million dollars. McCoy's supervision of the representatives and the transactions in the accounts was unreasonable in that he failed to adequately follow up on multiple red flags. McCoy failed to identify excessive and unsuitable trading activity in the customer's accounts. McCoy failed to detect the use of discretion by these representatives in the accounts, despite his routine meetings with the customer.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

Any principal capacity

Indefinite

6/15/2018

Civil and Administrative Penalty(ies)/Fine(s)

$75,000.00

Respondent understands that this settlement includes a finding that he failed to supervise an individual who violated G-19 of the MSRB Rules and that under Article III, Section 4 of FINRA's By-Laws, this makes him subject to a statutory disqualification with respect to association with a member.

Claimants allege that a financial advisor under Mr. McCoy's supervision engaged in, inter alia, common law and statutory securities violations in connection with claimant's investment accounts from 2007 to 2012. Mr. McCoy is named in his capacity as a branch manager only.

$118,658,059.00

$32,840,000.00

CLAIMANTS ALLEGE THAT BROKER UNDER MR. MCCOY'S SUPERVISION ENGAGED IN , INTER ALIA, COMMON LAW, STATUTORY SECURITIES VIOLATIONS IN CONNECTION WITH TRANSACTIONS IN TECH STOCKS FROM 2000 TO 2001. MR. MCCOY IS NAMED IN HIS CAPACITY AS A BRANCH MANAGER ONLY.

$125,000.00

$35,000.00

IN ORDER TO AVOID THE COSTS AND UNCERTAINTIES OF LITIGATION, MORGAN STANLEY AGREED TO PAY CLAIMANTS AS FOLLOWS: $27,000.00 TO [CUSTOMER], $5,000.00 TO [OTHER CUSTOMER NAMED] AND $3,000.00 [OTHER CUSTOMER NAMED] IN FULL AND FINAL SETTLEMENT OF ANY AND ALL CLAIMS ASSERTED BY CLAIMANTS IN THIS PROCEEDING. CLAIMANTS HAVE DISMISSED ALL CLAIMS AGAINST MR. MCCOY WITH PREJUDICE AND HAVE AGREED TO COOPERATE IN SECURING THE EXPUNGEMENT OF THE ARBITRATION FROM MR. MCCOY'S CRD RECORDS.

CLAIMANT ALLEGES THAT A BROKER UNDER MR. MCCOY'S SUPERVISION ENGAGED IN INTER ALIA, COMMON LAW AND STATUTORY SECURITIES VIOLATIONS IN CONNECTION WITH TRANSACTIONS FROM 2000 TO 2001. MR. MCCOY IS NAMED IN HIS CAPACITY AS BRANCH MANAGER ONLY.

$50,000.00

$185,000.00

MR. MCCOY WAS NAMED SOLELY IN HIS CAPACITY AS A SUPERVISOR. ALL CLAIMS AGAINST MR. MCCOY WERE DISMISSED BY CLAIMANT. MR. MCCOY DID NOT CONTRIBUTE TO THE SETTLEMENT IN THIS MATTER.