FIssues Fine and Suspension To Morgan Stanley’s Ken Kavanagh For Outside Business Activities

Soreide Law Group is evaluating possible investor claims in regard to Morgan Stanley securities broker Ken Kavanagh (CRD#: 4502223, New York New York). Namely, the securities broker, who Morgan Stanley disaffiliated with on April 16, 2018 for outside business activities, and who the Financial Industry Regulatory Authority (“FINRA”) suspended on August 5, 2019 for the same reason, is the focus of at least two investor disputes. Here is more on the disclosures involving Kavanagh which indicate that he concealed outside activities from Morgan Stanley, engaged in unauthorized transactions, and caused one or more investors’ losses.

FINRA Issues Fine, Sanction To Ken Kavanagh

Evidently, on August 5, 2019, FINRA issued Ken Kavanagh a $25,000 fine and 18-month suspension for violating rules on outside business activities. Namely, Morgan Stanley’s written supervisory procedures stated that its employees had to get permission if they wanted to engage in outside business activities. Kavanagh did not follow the firm’s guidelines.

Ken Kavanagh Engages In Undisclosed Outside Business Activities

Supposedly, through Kavanagh’s companies, CEO-Sports and MGMT, LLC, he provided services to professional athletes. FINRA says that those athletes maintained accounts with Morgan Stanley. Kavanagh made an estimated $5,000,000 from the services he provided to those athletes. Apparently, Kavanagh did not tell Morgan Stanley about his companies, and he seemingly lied about his activities. Not only that, but Kavanagh supposedly falsely completed six compliance questionnaires by denying his involvement in outside business activities. Kavanagh is suspended from August 5, 2019 to February 4, 2021.

Client Of Morgan Stanley Indicates Kavanagh Engaged In Unauthorized Transactions

Morgan Stanley also reports that a client disputed Ken Kavanagh’s sales practices on August 15, 2018. Supposedly, from 2010 to 2018, Kavanagh made unauthorized trades in the client’s account. It appears that the client did not have knowledge, or did not consent to, Kavanagh’s trades. Not only that, it appears that Kavanagh or another securities broker forged the client’s signature on documents. As a result, the client demanded $186,000 in damages. However, this matter closed without resolution on August 15, 2018.

Ken Kavanagh Breach A Fiduciary Duty Owed To You?

Lars Soreide Highest Ethical Standard Award 2018

Lars Soreide Highest Ethical Standard Award 2018

Experienced losses due to Morgan Stanley securities broker Ken Kavanagh? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have suffered losses due to misconduct of brokers and brokerage firms.