Former Morgan Stanley Rep in Hot Water with FINRA Over “Altered” Client Check

The Financial Industry Regulatory Authority enforcement division filed an official complaint against former Morgan Stanley Wealth Management representative Damian M. Baird for ducking its investigation into an allegation that he altered a $50,000 client deposit check to make it payable to himself.

Baird was ordered in January to repay Morgan Stanley more than $1 million related to an unvested portion of forgivable notes it had paid him as part of a hiring bonus when he agreed to join the firm in 2018. Morgan Stanley terminated Baird in May 2020 for “job abandonment.”

Baird then became registered with Moors & Cabot from June 2020 to Feb. 2023 when he voluntarily resigned. In March, Baird was suspended by FINRA for failing to comply with the Morgan Stanley arbitration award. Moors & Cabot filed an amendment that same month to Baird’s Form U5 disclosing a customer complaint received on Mar. 1, 2023.

The March U5 Amendment stated that two of Baird’s customers (a married couple) “wrote a check for $50,000 . . . for deposit” into their account serviced by Baird, and the “[b]ank’s fraud department [had] contacted [them] with concerns that the check which was presented for payment on February 24, 2023[,] may have been altered and was made payable to Damian Baird.”

FINRA states in its complaint that Baird has failed to cooperate with its investigations into the allegedly altered check or the failure to comply with the Morgan Stanley arbitration award.

Although Baird is no longer registered or associated with a FINRA member, the Department says that he remains subject to FINRA’s jurisdiction. The department requests that the panel “make findings of fact and conclusions of law that Baird committed the violations charged and alleged” herein; order that one or more of the sanctions provided include monetary sanctions, be imposed; and order that Baird bear such costs of proceeding as are deemed fair and appropriate.

Baird first registered with FINRA in July 1998 as an investment company and variable contracts products representative with HSBC Brokerage. From Nov. 16, 2018, to May 22, 2020, he was registered with FINRA through an association with Morgan Stanley, and from June 5, 2020, to Feb. 27, 2023, he was registered with FINRA through an association with Moors & Cabot Inc.

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