Welcome to Financial Advisor IQ
Follow

22-Year Morgan Stanley Veteran Barred After Alleged $273 Improper Expense

By Alex Padalka November 13, 2018

Self-regulator Finra has barred a wirehouse broker who left his firm after allegations of improperly filing expenses — in this case, for less than $300, and after close to 22 years with the same company.

John Baldeck had joined the financial services industry in 1993 and came to Morgan Stanley in 1994, according to his BrokerCheck profile.

The wirehouse permitted Baldeck to resign in June 2016 following allegations he had “requested and received reimbursement from the Firm for expenses described as client meal expense, when the meals were actually personal in nature,” Morgan Stanley says in his profile, adding that no clients were charged for the expenses.

In response to the allegations, Baldeck wrote that he was participating in the company’s Automated Flexible Grid program, which deducted funds from his net payout for business expenses.

According to Baldeck, “Morgan Stanley determined that I was reimbursed $272.94 from those funds to pay for meals with my daughters.” He adds that he reimbursed the firm even though he believes the AFG funds were his to use.

On Finra’s request, Baldeck appeared in front the regulator to testify last month and gave a partial testimony related to his departure from Morgan Stanley, but told Finra’s staff that he refused to complete the testimony that day or at any time, according to a letter of acceptance, waiver and consent published by the regulator.

(Getty)

Following his refusal, Finra barred Baldeck from the industry, the regulator says. The former broker consented to the order without admitting or denying Finra’s findings, according to the letter of consent.

After leaving Morgan Stanley, Baldeck registered with KMS Financial Services, but his registration there ended earlier this month, according to BrokerCheck. He has no other disclosure records over his 24-year career in the financial services industry, according to his profile.