FINRA filed a complaint against former Morgan Stanley Smith Barney broker Gregory Scott Taylor, alleging that he failed to inform his firm that he had been named beneficiary of a 75-year-old widow's bank accounts, the executor of her estate or her attorney-in-fact. He similarly purportedly failed to disclose these material facts when the elderly widow was diagnosed with dementia, nor did he disclose the extent of their personal relationship (e.g., Taylor allegedly flew out of state to see her).
Taylor also purportedly accepted a cash gift from this customer, which was prohibited by Morgan Stanley's policies and procedures. One month after inappropriately accepting the cash gift, Taylor allegedly submitted a compliance questionnaire in which he falsely denied receiving this gift.
The findings state that Taylor met the 75-year-old widow through a broker he used to assist, establishing a personal relationship with her through frequent telephone calls, giving her his personal cell phone number, and by visiting her at her homes, including a Texas home and, later on, flying out to see her at her Florida home.
The complaint alleges that, "during each of these three trips to see [the 75-year-old Morgan Stanley customer] in Florida, Taylor engaged in unethical conduct with regard to [her]."
On one occasion, the senior widow gave Taylor at least $300 in cash as a gift, which Taylor deposited and used for personal expenses, and falsely indicated on a subsequent firm compliance questionnaire that he had received no such cash gifts from this or any other customer during the past year.
During another Florida trip, Taylor accompanied the widow to a bank, where she named Taylor beneficiary of the checking and savings accounts upon her death. Morgan Stanley policy at the time "strongly discouraged employees from knowingly becoming designated as a beneficiary under a customer's will, trust, IRA, TOR or other account or instrument that would take effect at death."
After another accompaniment (this time to a lawyer's office), Taylor was appointed executor and successfully requested to be granted power of attorney in the event of incapacitation or similar impairment.
The 75-year-old widow was diagnosed with dementia shortly thereafter.
The findings state that Taylor disclosed none of this—not the relationship, phone calls, trips and flights, nor the appointments—to the Morgan Stanley firm, which discharged Taylor when learning of these facts.
If you or any family members have invested with former Morgan Stanley broker Gregory Scott Taylor (Greg Taylor) or with any broker or investment adviser whose inappropriate personal relationship or unethical conduct related to being named as a beneficiary, executor of estate, or power of attorney uhas proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for investigation and consultation.