Doug McKelvey Investigation
June 2023-Southlake, TX
According to publicly available records Doug McKelvey,a former broker who last worked for Morgan Stanley, discloses a final regulatory matter resulting in a permanent bar from the industry, a prior customer dispute, a pending customer dispute and a termination from employment.
SEC Alleges McKelvey Stole From His Relatives.
In June 2023, the US Securities & Exchange Commission filed a civil action against McKelvey in the US District Court for the Northern District of Texas. The SEC alleges that McKelvey engaged in a fraudulent scheme through which he misappropriated more than $1.7 million from the accounts of two elderly relatives. He carried out his scheme by initiating fraudulent disbursements of funds from the accounts of his relatives to make credit card payments on credit cards used by McKelvey and/or his wife to pay their personal expenses as well as by writing checks and unauthorized ACH transfers.
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
In 8/2022 FINRA permanently barred McKelvey from the securities industry in all capacities to resolve allegations regarding his unauthorized activity and misappropriation of client funds from client accounts, which were held by his relatives.
In 5/2022, FINRA case#22-00950 filed by a Morgan Stanley customer alleged that McKelvey misappropriated funds from claimants’ accounts from 2016-2020. The case settled for $1,400,000 with a $200,000 contribution from McKelvey personall.
In 4/2022, McKelvey was discharged from his employment with Morgan Stanley in response to allegations regarding his unauthorized activity and misappropriation of funds from client accounts, which were held by relatives of the representative. McKelvey had been with Morgan Stanley since 6/2009. Before that time he had been employed with Citigroup Global Markets, Inc. and UBS Financial Services, Inc.
If you have questions about an account handled by Doug McKelvey contact us for a no charge consultation to learn how you may be able to recover damages through FINRA arbitration.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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