Securities Industry Commentator by Bill Singer Esq

Love At First Quarantine: After A Single Date, Couple Hunkers Down Together (NPR / "All Things Considered")

Morgan Stanley is planning to bring traders back to New York headquarters next month, sources say (CNBC by Hugh Son)

Troubling Disconnect and Lack of Appropriate Explanation Found in Scapegoat Defamatory Form U5 FINRA Arbitration (BrokeAndBroker.com Blog)

FINRA OHO Fines and Suspends Rep Over Disclosures of Tax Liens and Warrants. FINRA  of Enforcement, Complainant, v. Michael Patrick Murphy, Respondent (FINRA OHO Hearing Panel Decision)

In the Matter of the Claim for an Award in connection with [REDACTED] (SEC Order Determining Whistleblower Award Claim)

When workers do return to Morgan Stanley, they will find an office that's very different from the one they left: Employees will have to queue up to get their temperatures checked before entering the building.

Inside, signage will direct people where to walk so they don't bump into each other. Only two or three people will be allowed in an elevator at a time. Employees will get welcome kits with masks and hand sanitizer, and will be required to wear masks in most situations except when sitting at desks, the people said.

FINRA's Department of Enforcement filed a Complaint against Respondent Michael Patrick Murphy, a registered representative and principal of a FINRA member firm. In a single cause of action, the Complaint alleges that from February 2014 through May 2018, Murphy failed to timely amend his Uniform Application for Securities Industry Registration or Transfer (Form U4) to disclose three federal income tax liens filed by the Internal Revenue Service ("IRS Liens") and four tax warrants filed by the New York State Department of Taxation and Finance(also alleges that Murphy provided inaccurate information when he updated his Form U4 to disclose six of the seven Liens.The alleged failures to update and the inaccurate update constituted an allegedly willful violation of Article V, Section 2(c) of FINRA's By-Laws and FINRA Rules 1122 and 2010.

Murphy denied the charges, and a hearing was held before a FINRA Hearing Panel. At the hearing, Murphy contended, among other things, that he was not subject to any tax liens and that his failure to disclose any such liens did not violate FINRA By-Laws or Rules. 

After carefully considering the hearing testimony, the hearing exhibits, and the parties' pre-hearing and post-hearing briefs, the Hearing Panel finds, as explained below, that Enforcement established Murphy's willful violation of Article V, Section 2(c) of FINRA's By-Laws and FINRA Rules 1122 and 2010, by failing to timely amend his Form U4 to disclose the Liens and later providing inaccurate information when he amended his Form U4. Based on this finding, the Hearing Panel fines Murphy $20,000 and suspends him from associating with any FINRA member in any capacity for six months. 

The Hearing Panel finds that aggravating factors predominate in Murphy's failure to

timely amend his Form U4 and his inaccurate amendment. The undisclosed information about the Liens was significant. The total amount of the Liens -- $6,031,387 -- was staggering. The number of the Liens -- seven -- and the length of time the Liens were not disclosed-up to four years-would raise serious questions about Murphy's ability to manage his financial affairs, the financial pressures he was facing, and his ability to comply with FINRA By-Laws and Rules. Murphy's omission included both federal and state tax liens. He did not accept responsibility for his misconduct and did not disclose the Liens even after FINRA gave him notice of them in RAD disclosure letters and FINRA Rule 8210 requests, showed him the Lien documents in his OTR, and sent his attorney the Lien documents in another FINRA Rule 8210 request.

Murphy did not update his Form U4 even though FINRA had warned him on a number of occasions that he was required to do so. The Hearing Panel finds it deeply troubling that Murphy still failed to timely amend his Form U4 after a cause examination had begun. His continued defiance despite the regulatory pressure brought to bear on him-reflects a conscious decision not to disclose the Liens, most likely to avoid harm to his businesses. He misrepresented the date that he learned of the Liens, demonstrating his lack of regard for FINRA By-Laws and Rules. He falsely stated the date was April 19, 2018, within 30 days of the date he amended his Forms U4. 

• Securities Industry Commentator
• Bill Singer