Former Morgan Stanley Advisor Kirk Crossen Accused of Taking $400,000 Loan from Elderly Client
FINRA Disciplinary Action against ex-Morgan Stanley Rep Kirk Crossen
The Financial Industry Regulatory Authority (FINRA) has reportedly filed a disciplinary complaint against former Morgan Stanley financial advisor Kirk Crossen, alleging that he borrowed $400,000 from an elderly client in violation of firm policy and industry rules. According to the complaint, Crossen—who worked in the industry for more than three decades—allegedly took three loans between 2021 and 2022 from a trust whose beneficial owner was 84 years old and experiencing diminished capacity.
FINRA alleges that the loans violated Morgan Stanley’s prohibition on borrowing from clients who are not immediate family members. The regulator also claims that Crossen concealed the loans by falsely attesting on two separate Morgan Stanley annual compliance questionnaires that he had not borrowed money from any individual during the prior 24 months.
FINRA’s enforcement division is seeking monetary sanctions, though the amount has not yet been specified.
Long Industry Tenure and Multiple Firm Affiliations
According to FINRA BrokerCheck, Crossen began his career in 1988 with Morgan Stanley and later worked at Citigroup Global Markets and Wells Fargo Advisors before returning to Morgan Stanley in 2016. He resigned from Morgan Stanley in 2023 and joined Raymond James & Associates, but the firm terminated his employment six months later. In its Form U5 filing, Raymond James stated that Crossen “lacked candor” during an internal inquiry involving a loan from a former client at his prior firm.
In May 2025, FINRA suspended Crossen indefinitely after he failed to pay an arbitration award connected to a clawback dispute with Raymond James. Arbitrators ordered him to pay nearly $2.6 million in compensatory damages, attorneys’ fees, and interest.
What This Means for Investors
Allegations involving loans from vulnerable or elderly clients often signal potential misconduct, including financial exploitation or conflicts of interest. Brokerage firms have strict procedures to prevent financial advisors from borrowing money from customers because such arrangements can expose investors to significant harm.
If a financial advisor borrows funds from a client—especially an elderly or impaired investor—without authorization, the firm may be liable for failing to reasonably supervise the advisor.
Recovering Losses – The White Law Group Can Help
If you invested with Kirk Crossen or another financial advisor who engaged in misconduct, you may be entitled to pursue a claim through FINRA arbitration. Brokerage firms can be held responsible for supervising their advisors and may be liable for losses caused by unsuitable investments, fraud, financial exploitation, or unauthorized transactions.
The White Law Group represents investors nationwide in FINRA arbitration claims involving financial advisor misconduct and elder financial abuse.
Free Consultation
For questions about recovering investment losses, call The White Law Group at (888) 637-5510 or visit our website for a free case evaluation.
FAQs
1. What rules did Kirk Crossen allegedly violate?
FINRA alleges that Crossen violated Morgan Stanley’s policies—and industry rules—by borrowing $400,000 from a client who was not an immediate family member. He is also accused of concealing the loans on required compliance questionnaires.
2. Can a financial advisor legally borrow money from a client?
Generally, no. Most brokerage firms strictly prohibit financial advisors from borrowing from customers except in very limited circumstances, such as loans from close family members or regulated financial institutions. Unauthorized loans are a significant red flag for potential misconduct.
3. What are my options if I believe my financial advisor improperly borrowed money or mishandled my account?
Investors may be able to pursue a claim through FINRA arbitration against the advisor’s brokerage firm for failing to supervise the advisor. A securities attorney can evaluate your situation and help determine whether you may be eligible to recover losses.
