Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Michael Carter (Carter), previously associated with Morgan Stanley, has at least 4 disclosable events. These events include one customer complaint, 3 regulatory events, alleging that Carter recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on July 02, 2021.
The Securities and Exchange Commission (‘Commission’) deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 (‘Exchange Act’) and Section 203(f) of the Investment Advisers Act of 1940 (‘Advisers Act’) against Michael Barry Carter (‘Carter’ or ‘Respondent’). The Commission finds that Carter was employed by Financial Institution A as an investment adviser representative and registered representative in McLean, VA from August 2006 until April 2011 and again from November 2011 until he was terminated in July 2019 in connection with the conduct described herein. Financial Institution A is an investment adviser and broker dealer registered with the Commission. Carter, 46 years old, is a resident of Knoxville, Tennessee. On June 30, 2021, a final judgment was entered by consent against Carter, permanently enjoining him from future violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Advisers Act, in the civil action entitled Securities and Exchange Commission v. Michael Barry Carter, Civil Action Number 20-cv-2112, in the United States District Court for the District of Maryland. The Commission’s complaint alleged that from approximately October 2007 through May 2019, Carter misappropriated approximately $6 million from brokerage customers and an elderly investment advisory client while he served as their financial advisor at Financial Institution A. The complaint alleged that Carter carried out his scheme by falsifying internal forms to effect approximately 60 unauthorized cash wire transfers from the customers’ and client’s accounts to his personal bank account at another financial institution. On July 20, 2020, Carter pled guilty to Wire Fraud and Investment Advisers Fraud before the United States District Court for the District of Maryland, in United States v. Michael Barry Carter, Crim. No. 20-cr-151. On March 29, 2021, a judgment in the criminal case was entered against Carter. He was sentenced to a prison term of 60 months followed by three years of supervised release and ordered to make restitution in the amount of $4,355,110.39. The counts of the criminal information to which Carter pled guilty alleged, inter alia, that Carter misappropriated over $6 million from customers and clients while he served as their financial advisor, by effecting numerous unauthorized transactions from their accounts
