Written by The White Law Group• March 21, 2024• 4:04 pm• Broker Investigations

Matthew Chimento Barred by FINRA

Matthew Chimento Allegedly Misappropriated Client Funds

According to a letter of acceptance, the Financial Industry Regulatory Authority (FINRA) has barred former Morgan Stanley broker Matthew Chimento (CRD#: 5749914) from associating with any FINRA member at any time.

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According to FINRA, the securities regulator, on December 11, 2023, Morgan Stanley filed a Uniform Termination Notice for Securities Industry Registration (Form U5) stating that Chimento had resigned voluntarily on November 20, 2023, while under internal review for allegedly “transferr[ing] funds out of a client’s account into an account for [his] benefit without client authorization.”

Chimento reportedly refused to provide information in its investigation, leading to the bar, according to FINRA,

FINRA Rules for Brokers

According to FINRA Rule 8210(a)(1), individuals and entities registered with FINRA must provide information concerning any matter relevant to a FINRA investigation or examination.

Additionally, FINRA Rule 8210(c) mandates that no member or individual shall refuse to provide information or allow inspection and copying of books, records, or accounts as required by this rule.

Violating FINRA Rule 8210 also constitutes a breach of FINRA Rule 2010, which mandates individuals associated with a FINRA member to uphold high standards of commercial honor and just and equitable principles of trade in their business dealings.

FINRA BrokerCheck Report – Matthew Chimento

According to this FINRA BrokerCheck report, Matthew Chimento (CRD#: 5749914) was affiliated with Morgan Stanley in Alpharetta, Georgia. 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.

You can use the tool to verify if a broker or brokerage firm is registered with FINRA, review their employment history, licensing status, and any regulatory actions or complaints filed against them.

Recovery of Investment Losses

When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.

Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. Our firm has handled over 700 FINRA arbitration claims on behalf of investors.