FINRA Bars Florida Broker Who Used Foundation’s Money

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FINRA Bars Florida Broker Who Used Foundation’s Money

FINRA permanently barred Stuart Siegel, a Florida broker who worked for Morgan Stanley and Oppenheimer & Co. Inc., from the securities industry after he used money from a foundation he headed to fund personal expenses. Siegel, who most recently worked at Oppenheimer & Co. Inc. in Sarasota, Florida, neither admitted nor denied FINRA’s allegations but agreed to the ban in a settlement with the regulatory agency.

Before working for Oppenheimer, Siegel worked in Venice, Florida for Morgan Stanley, who fired him in 2012 for “concerns regarding dealings with a private foundations.”

The private foundation at the center of the case was established to promote Jewish charitable causes. However, FINRA never identified by name either the foundation or Siegel’s client whose estate established the foundation. Siegel became president of the foundation in 1984.

At the time, Morgan Stanley allowed Siegel to act as president of the foundation but forbade him from receiving compensation from the foundation or to serve as its broker. However, Siegel, as president, had access to the foundation’s checking account, including a debit card in his name.

Siegel used a total of $76,000 of the foundation’s funds on at least nine different occasions to pay personal expenses, including $17,000 to pay a personal loan and almost $31,000 for his children’s tuition. He reimbursed the foundation after Morgan Stanley discovered the payments in 2012.

Having joined in 2013, Oppenheimer allowed Siegel to resign in January after discovering that FINRA had filed an enforcement claim against him.

If you or someone you know has lost money as a result of an investment, please contact Richard Frankowski at 888-741-7503 to discuss your potential legal remedies.

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