FINRA Fines/Suspends Broker Over Firearms Business
The Financial Industry Regulatory Authority has fined and suspended a former Morgan Stanley broker for failing to notify the broker-dealer about the full nature of his firearms business.
The Financial Industry Regulatory Authority has fined and suspended a former Morgan Stanley broker for failing to notify the broker-dealer about the full nature of his firearms business.
According to a letter of acceptance, waiver and consent issued by FINRA, Benjamin Kaz Fujihara resigned from Morgan Stanley in August 2018 “following concerns about . . . his adherence to the terms of an approval for an outside business activity that was not investment-related.” He was registered as a general securities representative, an investment company and variable contracts products representative, and a general securities sales supervisor.
FINRA claims that in November 2016, Fujihara requested in writing that Morgan Stanley approve his participation in an outside business that engaged in gunsmithing activities, such as restoring and performing woodworking services on firearms.
In January 2017, Morgan Stanley approved the proposed outside business, provided that he limit his role to gunsmithing activities and not use his federal firearms license as a dealer of firearms.
Between February 2017 and July 2018, FINRA claims that Fujihara purchased and resold a small number of firearms through his outside business without performing any woodworking or other gunsmithing services before selling them.
Because he purportedly engaged in outside business activities without providing full and accurate prior written notice to Morgan Stanley, FINRA suspended Fujihara for 30 days and fined him $5,000.
Fujihara has no relevant disciplinary history and signed the AWC letter without admitting or denying the findings.
