Finra fines former Morgan Stanley rep for impersonating a client

To transfer retirement funds, John Tillotson faked identity in call to mutual fund company

Aug 20, 2019 @ 1:46 pm

By InvestmentNews

The Financial Industry Regulatory Authority Inc. has fined former Morgan Stanley broker John Tillotson $5,000 and suspended him for 15 days for impersonating five clients in five phone calls to a mutual fund company so that he could transfer the clients' retirement funds to his firm.

[More: Finra bars broker accused of stealing $1 million from clients]

Morgan Stanley discharged Mr. Tillotson on March 15, 2019 due to "concerns related to him obtaining information for executed retirement plan transfer documents inappropriately." Mr. Tillotson currently is employed by Stifel Nicolaus.

In a letter of acceptance, waiver and consent, Finra said that the five clients of Mr. Tillotson signed documents to transfer their simple IRA accounts, held at a mutual fund company, to a new 401(k) plan provided by Morgan Stanley. It said that while Mr. Tillotson received permission from these customers to directly contact the mutual fund company in the event additional information was necessary to complete the transfers, they did not give him permission to impersonate them with the mutual fund company.

[More:Finra sues broker who failed to report sexual conduct charge]

Mr. Tillotson began his securities career in 1984 at E.F. Hutton and worked at successor firms until 2009, when he joined Morgan Stanley.

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