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Written by 4:35 pm Broker Investigations, FINRA SEC Sanctions

Douglas McKelvey Settles Fraud Charges 

Douglas McKelvey Settles Fraud Charges featured by top securities fraud attorneys, the White Law Group

Douglas McKelvey Allegedly Stole $1.7 Million from Elderly Customers 

A settlement was reportedly reached on January 24, 2024, in the case of former Morgan Stanley adviser Douglas McKelvey (CRD # 4502849), who allegedly defrauded elderly clients. The civil action, initiated by the Securities and Exchange Commission (SEC), alleged that McKelvey misappropriated over $1.7 million from two elderly brokerage customers who were close relatives.

The SEC claimed that, between June 2013 and February 2022, McKelvey made over 300 fraudulent and unauthorized fund disbursements to cover personal expenses, including credit card payments. In June 2023, McKelvey reportedly pleaded guilty to criminal charges, and the judgment was entered in November 2023.

As part of the settlement, McKelvey is reportedly barred from working in the securities industry and from participating in penny stock offerings. He had worked with Morgan Stanley for 12 years before being barred by FINRA in 2022.

Douglas McKelvey – FINRA BrokerCheck Profile

The FINRA BrokerCheck tool is a free online tool that allows investors to research and verify the background and credentials of financial brokers, brokerage firms, and investment advisors registered with FINRA.

BrokerCheck provides investors with detailed information about the professional history, qualifications, and regulatory actions of brokers and brokerage firms. You can use the tool to verify if a broker or brokerage firm is registered with FINRA. You can also review their employment history, licensing status, and any regulatory actions or complaints filed against them.

McKelvey’s broker report indicates that he was discharged by Morgan Stanley in 2022 after allegations of misappropriation of funds and unauthorized activity. He reportedly has 3 customer complaints on his record.

According to his FINRA BrokerCheck profile, McKelvey was affiliated with the following firm during his career:

06/01/2009 – 05/05/2022, MORGAN STANLEY (CRD#:149777), Southlake, TX,  B, 11/07/2008 – 06/01/2009, CITIGROUP GLOBAL MARKETS INC. (CRD#:7059), SOUTHLAKE, TX B, 04/05/2002 – 11/17/2008, UBS FINANCIAL SERVICES INC. (CRD#:8174), DALLAS, TX

Recovery of Investment Losses

If you have suffered losses investing with Douglas McKelvey, the securities attorneys at the White Law Group may be able to help you. For a free consultation with a securities attorney, please call (888) 637-5510. 

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 700 FINRA arbitration cases.

Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.

 For more information, please visit our website, whitesecuritieslaw.com.


Tags: , , Last modified: January 25, 2024