Maryland Files Regulatory Action Against Jeffrey Prince Following FINRA Suspension

Jeffrey Prince (CRD #: 2428655), a broker registered with LPL Financial, is the subject of a pending state regulatory action, according to his BrokerCheck record, accessed on May 23, 2023. Read on if you have questions about his alleged conduct as a broker.

Maryland Regulatory Action

On April 20, 2023, the State of Maryland filed a regulatory action against Jeffrey Prince following his suspension by FINRA and allegations that he incorrectly labeled trades in Morgan Stanley’s order entry system. This action is currently pending.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

FINRA Suspension

On March 21, 2023, Jeffrey Prince consented to the entry of findings that he allegedly falsified the representative code for 586 trades he entered into Morgan Stanley’s order entry system from August 2016 through February 2020.

According to a Letter of Acceptance, Waiver & Consent (AWC), Jeffrey Prince allegedly entered into an agreement with a retired broker in July 2016. He allegedly agreed to service certain client accounts, including by executing trades, under a joint representative code shared with this broker. The agreement allegedly also defined what percentages of commissions each broker would receive from trades placed under the joint representative code.

However, the AWC alleged that Jeffrey Prince overwrote the joint representative code prepopulated by Morgan Stanley’s internal system for 586 trades placed in accounts covered by his agreement during the relevant period.

He allegedly replaced the correct code with another representative code allowing him to receive a higher percentage of commissions than he was entitled to receive under his agreement. This allegedly led Morgan Stanley to keep inaccurate trade confirmations in its records.

Further, Jeffrey Prince allegedly believed that the retired broker had agreed that he could change the codes in this way, but failed to confirm this.

In December 2020, Morgan Stanley allegedly paid the retired broker $17,000 in restitution, which approximated the amount the broker would have received on these trades.

The AWC concluded that these allegations constituted violations of FINRA Rules 4511 and 2010.

FINRA Rule 4511

FINRA Rule 4511 requires that firms maintain accurate books and records.

Sanctions

Jeffrey Prince consented to the following sanctions:

• $5,000 fine
• 3-month suspension

His suspension began on April 17, 2023, and will end on July 16, 2023.

You can read a copy of the AWC here.

Termination from Morgan Stanley

On November 13, 2020, Jeffrey Prince was fired from Morgan Stanley following allegations that he submitted transactions under production numbers inconsistent with an agreement he made with another representative, resulting in a shortfall of revenue credited to that representative.

Background Information

Jeffrey Prince has passed the following exams:

• Series 65 – Uniform Investment Adviser Law Examination
• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 3 – National Commodity Futures Examination
• Series 31 – Futures Managed Funds Examination
• Series 7 – General Securities Representative Examination
• Series 6 – Investment Company Products/Variable Contracts Representative Examination
• Series 10 – General Securities Sales Supervisor – General Module Examination
• Series 9 – General Securities Sales Supervisor – Options Module Examination

Jeffrey Prince is a registered broker in 34 states and a registered investment adviser in California and Texas.

He has also worked for the following firms:

• Morgan Stanley (CRD#:149777)
• Citigroup Global Markets (CRD#:7059)
• Morgan Stanley (CRD#:7556)
• CIBC Oppenheimer (CRD#:630)
• Biltmore Securities (CRD#:25023)
• Murphey, Marseilles, Smith & Nammack (CRD#:18032)
• PFS Investments (CRD#:10111)

Kurta Law Can Help

If you worked with Jeffrey Prince and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.