Malcolm Graham Bourne III (CRD #1562435) Has Customer Dispute and Employment Separation Disclosures on FINRA BrokerCheck

Malcolm Graham Bourne III (CRD #1562435) was previously registered as a broker. Malcolm Bourne’s FINRA BrokerCheck report reflects five customer disputes and two employment separation disclosures. We reviewed his BrokerCheck report on June 10, 2026. If you invested with Malcolm Graham Bourne III and have concerns, keep reading.

BrokerCheck link: BrokerCheck

BrokerCheck report: BrokerCheck Report (PDF)

Investor Disputes / Customer Complaints

Malcolm Bourne’s FINRA BrokerCheck report reflects five customer dispute disclosures. A summary of two disputes is below:

On May 18, 2026, claimants alleged breach of fiduciary duty, negligence, false representations, elder abuse, and related claims. Malcolm Bourne’s FINRA BrokerCheck report lists the product as equity listed securities. The claimants sought $5,000,000 in damages. The matter remains pending with FINRA under case number 26-01095.

On May 17, 2002, a customer complained about account losses above $350,000. Malcolm Bourne’s FINRA BrokerCheck report lists the product as equity listed securities. The complaint was denied on June 28, 2002. Malcolm Bourne’s statement says the complaint was denied.

Malcolm Bourne’s FINRA BrokerCheck report reflects three additional customer dispute disclosures that are not summarized above.

Employment Separation After Allegations

Malcolm Bourne’s FINRA BrokerCheck report shows two employment separation disclosures. Both are summarized below:

On February 6, 2026, Stifel, Nicolaus & Company, Incorporated discharged Malcolm Bourne. Malcolm Bourne’s FINRA BrokerCheck report states the firm ended his employment after it learned about an undisclosed loan from a client to an immediate family member.

On August 19, 1993, Paine Webber discharged Malcolm Bourne. Malcolm Bourne’s FINRA BrokerCheck report states that a $450 debit arose in a client account after a transaction was not paid for. Malcolm Bourne reported that he paid the client to settle the payment dispute.

Rule Summary #1: FINRA Rule 2165 (Financial Exploitation of Specified Adults)

FINRA Rule 2165 addresses possible financial exploitation of older or vulnerable adults. It allows a firm to place a temporary hold when it has a reasonable belief that exploitation has occurred or may occur.

Rule Summary #2: FINRA Rule 3240 (Borrowing From or Lending to Customers)

FINRA Rule 3240 limits borrowing from, or lending to, customers. It requires firm procedures and written approval for many permitted loan arrangements.

Why This Matters to Investors (Regulation Best Interest)

Regulation Best Interest (Reg BI) is a U.S. securities regulation. It strengthens the standard of conduct that broker-dealers owe to retail investors. It applies when they recommend securities transactions or investment strategies. The U.S. Securities and Exchange Commission adopted Reg BI. It became effective on June 30, 2020. Reg BI aims to protect investors while preserving access to brokerage products and services.

Reg BI requires broker-dealers and financial advisors to act in a retail customer’s best interest at the time of a recommendation. They must not place their own financial or other interests ahead of the customer’s. This standard is higher than the older “suitability” rule. Suitability meant a recommendation only had to be appropriate. It did not have to be the best option or free of conflicts.

Reg BI has four key obligations:

Disclosure Obligation – Broker-dealers must disclose material facts about the relationship and the recommendation. This includes fees, the scope of services, and conflicts of interest.

Care Obligation – Broker-dealers must use reasonable diligence, care, and skill. They must consider costs, risks, and alternatives when making a recommendation.

Conflict of Interest Obligation – Firms must identify conflicts of interest. They must disclose them and mitigate or eliminate them. This includes conflicts that create incentives to favor one product over another.

Compliance Obligation – Firms must maintain policies and procedures. Those policies should be designed to ensure compliance with Reg BI as a whole.

Reg BI applies to each recommendation. It is not a continuous duty like the fiduciary standard for registered investment advisers. Even so, it narrows the gap. It puts more focus on costs, conflicts, and investor-focused decision-making.

Overall, Regulation Best Interest promotes transparency. It also aims to improve the quality of investment recommendations. It is designed to reinforce trust between retail investors and broker-dealers in the U.S. securities markets.

Background Information (from BrokerCheck)

Based on his FINRA BrokerCheck report, Malcolm Bourne:

Is not currently registered as a broker.

Has passed the Securities Industry Essentials (SIE) exam. Malcolm Bourne has passed Series 7. He has also passed Series 65 and Series 63.

Was previously registered with firms that include Stifel, Nicolaus & Company, Incorporated, PaineWebber Incorporated, and Lehman Brothers Inc.

Kurta Law Can Help

If you have worked with Malcolm Bourne and you have concerns about his activity, Kurta Law may be able to help you evaluate your legal options. To speak with Kurta Law, call 877-600-0098 or email info@kurtalawfirm.com.

Helpful resources: Securities Attorney | Unsuitable Investments

For nearly 20 years, Kurta Law has advocated for investors and helped hold financial professionals accountable. Our firm represents clients nationwide in securities arbitration and related disputes. If you believe a broker or firm mishandled your account, an attorney can review the facts and explain possible next steps.