Finra bars ex-Morgan Stanley broker previously charged with mail fraud

This article was updated March 31, 2026, to include the comments of Gallagher's attorney, who provided more information on the situation. 

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.

In March 2026, Blandin Wright, Gallagher's attorney, told InvestmentNews that the matter had already been resolved. “The underlying situation involved an individual acting as attorney-in-fact who secured financing for a vehicle and issued a check on Mr. Gallagher’s behalf,” wrote Wright, in an email to InvestmentNews.

“The vehicle was ultimately seized, and Mr. Gallagher believed the matter had been resolved,” Wright noted. “He later learned—without prior calls or notice—that he had been indicted. The two principal counts for Fraud and Fictitious Check were dismissed, and he ultimately entered a plea to a 1001 felony unrelated to his professional responsibilities.”

“At the time, Mr. Gallagher had a spotless record at Morgan Stanley and was widely respected by his clients, many of whom submitted letters on his behalf,” he added. “There was no finding of professional misconduct, and suggestions that he misrepresented facts or received improper third-party compensation are inaccurate.”