DOUG MARSHALL MCKELVEY (CRD#: 4502849, DOUGLAS MCKELVEY), a former Morgan Stanley of Southlake, Texas, broker who was barred by FINRA in August, 2022, has pleaded guilty to misappropriating approximately $1.5 million from clients. This was reported by the US Attorney’s Office for the Eastern District of Texas.
According to the US Attorney’s Office, 58 year-old DOUGLAS MCKELVEY used client funds to pay for personal trips, meals, cruises, salon treatment and other personal expenses. McKelvey could face up to 10 years in prison.
In an article from Financial Advisor IQ, the Securities and Exchange Commission (SEC) announced it has filed a civil suit against DOUGLAS MCKELVEY related to the same allegations. According to the SEC, from June of 2013 to February of 2022, McKelvey allegedly initiated a total of more than 300 fraudulent and unauthorized disbursements which included sales of securities. These were from the accounts of two elderly clients with whom he was closely related. The SEC claims that in at least 50 instances McKelvey allegedly misappropriated funds from their accounts on the day of or the day following his sales of securities in the accounts.
The Financial Advisor IQ article stated that DOUGLAS MCKELVEY falsely attested on internal Morgan Stanley forms that one of the clients had issued a verbal request to disburse funds from his investment account to an account that McKelvey controlled at another financial institution.
According to FINRA’s BrokerCheck, McKelvey was registered both as a broker and as a financial advisor, and was with Morgan Stanley from 06/01/2009 - 05/05/2022 until he was terminated in April of 2022. DOUGLAS MCKELVEY was in the securities industry for 20 years and was listed with 3 firms. McKelvey has 5 disclosures on his FINRA CRD report. Three of the disclosures are “Customer Disputes.” One dispute was settled in February of 2022 following these allegations, “Claimant alleges, inter alia, that the FA misappropriated funds from client's accounts 2008 – 2022.” The settlement amount was $450,000.00. Another dispute from May of 2022 settled following the allegations, “Claimant alleges, inter alia, FA misappropriated funds from Claimants' accounts - 2016 to 2022.” That settlement amount was $1,400,000.00.
If you or an elderly loved one have experienced financial losses due to the former Morgan Stanley of Southlake, Texas, broker, DOUGLAS MCKELVEY, contact Soreide Law Group and speak to an experienced securities lawyer regarding the possible recovery of your investment losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group represents our clients nationwide before FINRA on a contingency fee basis, no fee to you if no recovery.
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