The Financial Industry Regulatory Authority has permanently barred a veteran Morgan Stanley broker for allegedly misappropriating funds from the accounts of clients who were also his relatives, the agency said.
According to a letter of acceptance, waiver and consent submitted by Doug Marshall McKelvey, who worked in the Southlake, Texas, office, Morgan Stanley filed a Uniform Termination Notice on May 22,2022 and in that Form U5 stated that McKelvey had been fired on April 8 because of concerns regarding unauthorized activity “and misappropriation of client funds from client accounts, which were held by relatives of the representative.”
When further information and documents were request by Finra staff in August, McKelvey acknowledged the request but refused to comply, the letter said. Instead, McKelvey consented to the permanent bar.
A call to McKelvey’s attorney, Stephen Huschka at Kessler Collins in Dallas, was not returned by press time.
According to BrokerCheck, McKelvey began his career in the Dallas office of UBS Financial Services in 2002. In 2008, he moved to Citigroup Global Markets in Southlake, and in 2009 to Morgan Stanley. Except for one customer complaint regarding the sale of an auction rate security in 2008, McKelvey’s career remained unblemished until his termination this year in April.
On May 2, 2022, a customer alleged that McKelvey had misappropriated funds from the claimant’s account between 2016 and 2022, the Finra website said.