The Financial Industry Regulatory Authority Inc. on Thursday barred a former Morgan Stanley broker who was “discharged,” or fired, from the firm last summer over allegations of outside or third-party business dealings.
According to his BrokerCheck report, the broker, Roger A. Gallagher, was charged in August with two felony counts related to mail fraud and fictitious obligations. He pleaded not guilty to both.
In the Finra order, Gallagher was barred from the securities industry after he refused to provide documents and information to Finra and to appear for on-the-record testimony regarding “a tip to Finra concerning a criminal indictment,” according to the self-regulatory organization. The August felony charges are not specifically mentioned in the Finra order.
Failing to cooperate with a Finra investigation is against industry rules and leads to sanctions for individual brokers and financial advisors, including being barred from the industry.
Gallagher agreed to Finra’s findings in the matter without admission or denial, according to the order. His attorney, Arun Rao, did not return a call on Thursday to comment.
Gallagher was registered with Morgan Stanley from 2012 to 2024, according to his BrokerCheck profile. A Morgan Stanley spokesperson did not return a call Thursday to comment.
According to industry news website AdvisorHub.com, Gallagher in June was charged with using a fraudulent check to pay for a Porsche sport utility vehicle.
Gallagher faced the mail fraud charge when he sent a “false and fraudulent” $200,000 check to a local car dealership in April to pay for the SUV, according to AdvisorHub.com, which cited a criminal indictment filed by Miami federal prosecutors in June.
The indictment cited in the website’s report was not available on Thursday to InvestmentNews.
Gallagher allegedly in April had told an employee of the company to “call me when it clears,” despite knowing that the check was fraudulent, according to the indictment, AdvisorHub.com reported. His BrokerCheck record shows he has been involved in multiple outside businesses related to cars, AdvisorHub.com reported.
At Morgan Stanley, Gallagher had been part of the San Francisco-based Schwabacher Group, which managed $838 million in client assets, according to a 2024 Forbes ranking, AdvisorHub.com reported.
Also this month, an elderly Morgan Stanley client in Florida who fell prey to a so-called “gold bar” scam won $843,000 in damages from the firm after she claimed it failed to follow industry rules designed to protect senior investors.
Marjorie Kessler, 76, claimed last year that Morgan Stanley violated two industry rules and “long-standing” industry standards designed to protect elderly clients, according to her statement of claim, which alleged she had been defrauded of $1.75 million, not by the firm, but outside fraudsters targeting her wealth.
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