FINRA Fines Former Morgan Stanley Rep for Disclosing Customer Information

​The United States Financial Industry Regulatory Authority (FINRA) announced that it has imposed a fine of $5,000 and a suspension from association with any FINRA member firm in all capacities for 10 business days on Joseph D. Olheiser, former General Securities Representative (GSR) of Morgan Stanley Smith Barney LLC.

In April 2016, Olheiser joined Morgan Stanley Smith Barney LLC as a GSR. In February 2019, he voluntarily terminated his association with Morgan Stanley and joined Raymond James Financial Services, Inc. as a GSR.

In anticipation of joining Raymond James, Olheiser improperly removed nonpublic personal customer information, which he had received from Morgan Stanley as part of his employment as a registered representative, without the customers' knowledge or consent.

The Morgan Stanley client profiles included detailed information, such as account numbers, account objectives, investment time horizons, risk tolerances, and account balances. Olheiser improperly possessed this information after leaving Morgan Stanley.

As a result, Olheiser violated FINRA Rule 2010 by causing Morgan Stanley to violate the Securities and Exchange Commission's Regulation S-P.

According to FINRA, Olheiser agrees to pay the monetary sanction upon notice and understands that if he is barred or suspended from associating with any FINRA member, he becomes subject to a statutory disqualification as that term is defined in Article III, Section 4 of FINRA' s By-Laws, incorporating Section 3(a)(39) of the Securities Exchange Act of 1934.