FINRA

Without admitting or denying the findings, Prouty consented to the sanction and to the entry of findings that he refused to produce information and documents requested by FINRA in connection with its review of the circumstances giving rise to the Form U5 filed by his member firm. The findings stated that the firm filed the Form U5 disclosing that it had discharged Prouty due to concerns that he submitted transactions under production numbers that were inconsistent with an agreement with another representative resulting in a shortfall of revenue credited to the other representative.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All capacities

Indefinite

5/19/2022

Morgan Stanley

Discharged

Allegations that the representative submitted transactions under production numbers that were inconsistent with agreement with another representative resulting in a shortfall of revenue credited to other representative. No customer impact.

Prouty was a subject of the customer's complaint against his member firm that asserted the following causes of action: suitability; deceptive trade practices; breach of fiduciary duty; negligent misrepresentation; breach of contract and implied covenant of good faith and fair dealing; negligent supervision; control person liability; and respondeat superior.

$519,089.00