A former Morgan Stanley broker has been barred by the Financial Industry Regulatory Authority (Finra) after he allegedly carried out undisclosed business activities and refused to fully comply with the subsequent investigation.
Finra barred Daniel Todd Levine from working for its member firms on Tuesday because he refused to fully turn over documents and information for an investigation into allegations against him, violating two of its rules which require Finra-regulated brokers to comply with information requests and conduct themselves with 'high standards of commercial honor.'
The securities industry watchdog began investigating allegations that Levine had engaged in 'undisclosed outside business activities, solicited a customer to borrow funds for an outside business activity and executed unauthorized trades' in August of 2018.
Levine accepted Finra's action without admitting or denying its findings.
Levine, who had worked for the wirehouse in the Denver suburb of Greenwood Village, Colo. for five years, voluntarily resigned from Morgan Stanley in July of 2018 as the firm conducted an internal review into his actions.
Levine then joined First Financial Equity Corporation but was discharged in August of 2018, after barely spending a month with the firm. Levine was let go for allegedly failing to ‘disclose a regulatory inquiry to the firm,’ according to Finra’s BrokerCheck.
Finra documents show that in December of 2018 Levine ultimately declined through legal counsel to fully provide documents and information to the brokerage industry’s self-regulatory authority as it carried out its investigation into his conduct.
Levine’s lawyer, Marnie Adams of Recht Kornfeld, did not immediately respond to requests for comment. A spokeswoman for Morgan Stanley did not immediately provide comment.
Levine had spent 21 years in the brokerage business, according to BrokerCheck. He had spent five years apiece at Prudential Securities, Merrill Lynch and UBS before joining Morgan Stanley in June of 2013.
You can read the full disciplinary report here.