the Financial sector regulatory authority suspended and fined a formerMorgan stanley broker for allegedly changing account credits for nearly 190 transactions over a 29-month period in order to earn larger commissions himself.
John patrick miller received a 15-day suspension and a fine of $ 2,500, according to a letter of acceptance, waiver and consent dated December 22.
Around May 2015, Miller made an agreement to support certain accounts receivable, including executing transactions for those accounts, under common representative codes, also known as joint production numbers, according to Finra.
The codes have been shared with a senior team member and a retired rep, the letter says. “The agreement specified what percentages of commissions each representative would earn on transactions made using the common representative code,” he adds.
Finra claims that between September 2015 and January 2018, Miller manually changed the code representative of 186 transactions from the shared code to his under the direction of the senior team member.
As a result of these changes, Miller received more than $ 12,000 in commissions he was not entitled to, according to Finra. Additionally, the inaccurate codes caused Morgan Stanley to keep inaccurate books and records, in violation of Finra 4511 and 2010 rules.
Because Miller was asked to change the rep code by the senior team member, who was friends with the retired rep, Miller thought the retired rep had accepted the changes, but he didn’t. did not, ”the letter says.
In November 2020, Miller was fired by Morgan Stanley due to “[c]think that [he] submitted transactions under his single production number, on instruction from the senior member of his team, “according to the letter.
The following month, Morgan Stanley paid the retired broker a restitution, and in January 2021 Miller paid the house of wire back $ 12,185, the approximate amount of the additional commission he received from the affected trades.
Miller began his career at Morgan Stanley in 2011, according to BrokerCheck. BrokerCheck notes that Miller joined International Assets Advisory in Daytona Beach, Fla., Where he remains registered, in December 2020.
Miller accepted and consented to Finra’s conclusions without admitting or denying them, the letter said.
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