Investors potentially experienced sales practice violations because of securities broker Craig Sherman Thistlethwaite [CRD: 2507050, Perrysburg, Ohio], according to publicly available information reported on FINRA BrokerCheck. Craig Thistlethwaite worked for Morgan Stanley from June 1, 2009 to February 16, 2023. Read below to learn more about the regulatory action taken against Thistlethwaite.
FINRA Fined Craig Thistlethwaite For Unauthorized Trading
Evidently, on July 24, 2024, FINRA issued Case: 2023077934901 sanctioning Craig Thistlethwaite. FINRA alleged that Thistlethwaite executed unauthorized discretionary trades and used unapproved communication methods with clients.
According to FINRA’s findings, between January 2014 and April 2021, Craig Thistlethwaite placed trades in clients’ accounts without written authorization. This activity violated NASD Rule 2510(b) and FINRA Rules 3260(b) and 2010, which require brokers to obtain written client authorization and firm approval before exercising discretionary transactions.
Additionally, Thistlethwaite communicated with a client about securities using an unapproved channel under Morgan Stanley’s policies. Section 17(a) of the Securities Exchange Act and FINRA Rule 4511 required the preservation of those messages. This led to Morgan Stanley maintaining incomplete books and records, which is also a violation of FINRA Rule 2010.
These violations originated from the circumstances disclosed in Morgan Stanley’s February 16, 2023, Form U5, which indicated concerns regarding Thistlethwaite’s unauthorized trading.
FINRA accepted Thistlethwaite’s Letter of Acceptance, Waiver, and Consent (AWC), which resolved the case and included the sanctions. Specifically, Thistlethwaite was suspended for 60 days and fined $10,000.
Thistlethwaite also surrendered his Oho investment adviser registration license on December 11, 2024, according to an Ohio Division of Securities Consent Order.
Morgan Stanley Investor Accused Thistlethwaite Of Unsuitable Recommendations
In addition, a Morgan Stanley client filed FINRA Arbitration No. 22-00218 about Craig Thistlethwaite. Allegedly, Thistlethwaite made unsuitable recommendations about a stock options strategy. For this reason, the client allegedly experienced damages. Therefore, on December 29, 2022, Morgan Stanley settled this matter by paying the client $4,200,000.00 in damages.
Craig Thistlethwaite Disclosed Breach Of Fiduciary Duty Allegations By Morgan Stanley Client
Additionally, a client of Morgan Stanley contested Craig Thistlethwaite’s sales practices in FINRA Arbitration No. 21-02127. Mainly, the investor alleged that Thistlethwaite committed unauthorized trading, breached his fiduciary duty, failed to supervise, violated FINRA rules, breached a contract, and was negligent. It appears that Morgan Stanley caused the client to sustain damages connected to options and technology stocks. Consequently, FINRA Arbitrators issued an Award dated December 1, 2022, compelling Morgan Stanley to compensate the client in the amount of $11,500,000.00.
Were You Impacted By Securities Broker Thistlethwaite?
Do you need clarification on any investment losses relating to Craig Thistlethwaite? You should reach out to Soreide Law Group online or at (888) 760-6552 and consult with a securities lawyer regarding a possible recovery. Soreide Law Group is experienced at recovering losses for investors located within the US. Also, the firm works on a contingency fee basis and advances all costs. Thistlethwaite and brokerage firms Thistlethwaite worked for deny allegations of sales practice violations.
