Kevin Gunnip, Formerly of Morgan Stanley, Barred by FINRA Following Allegations of Unsuitable Short-Term Trading

Gunnip’s former employer, Morgan Stanley, was fined $950K for failing to supervise Gunnip. 

The Sonn Law Group is investigating allegations that Steven Gunnip engaged in excessive trading. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

Kevin Scott Gunnip (CRD#: 2701801) was previously employed as a broker with Morgan Stanley from 2009 until 2018. He was permitted to resign in February 2018 following allegations about whether he executed  some transactions for non-discretionary client accounts without confirming the trades beforehand in all cases.

Morgan Stanley recently agreed to pay almost $950,000 in fines and restitution for allegedly failing to supervise a broker who excessively traded corporate bonds and preferred securities for five years. Despite receiving alerts about the broker’s activities and a negative compliance report, Morgan Stanley checked with customers to see if they were satisfied and let the pattern of trading continue. The trading allegedly caused tens of customers to suffer “losses of more than $900,000.” The AWC signed by Morgan Stanley identified the broker by his initials, KG.

Gunnip has four other disclosures on his BrokerCheck report.

September 2019 Regulatory Judgment

• Status: Final
• Initiated By: FINRA
• Allegations: Without admitting or denying the findings, Gunnip consented to the sanction and to the entry of findings that he refused to appear for on-the-record testimony requested by FINRA in connection with its investigation of allegations that Gunnip engaged in unsuitable short-term trading of long-term securities.
• Resolution: Acceptance, Waiver & Consent (AWC)
• Sanctions: Bar
• Registration Capacities Affected: All Capacities
• Duration: Indefinite
• Start Date: 9/18/2019

August 2017 Customer Dispute

• Status: Settled
• Allegations: Claimants alleged, inter alia, excessive trading with respect to transactions made in managed accounts – 2010 to 2014.
• Damage Amount Requested: $2,000,000
• Settlement Amount:  $614,000.00

February 2017 Customer Dispute

• Status: Settled
• Allegations: Claimant alleged, among other things, that some of his investments and trading were unsuitable.
• Damage Amount Requested: $400,000
• Settlement Amount:  $145,000.00

June 2016 Customer Dispute

• Status: Settled
• Allegations: Claimants alleged, inter alia, that their financial advisor recommended unsuitable investments.
• Damage Amount Requested: $200,000
• Settlement Amount:  $150,000.00

Contact Us Today

The Sonn Law Group is currently investigating allegations that Kevin Gunnip engaged in excessive trading. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.