No Free Lunch: FINRA Fines Broker for Improper Meal Expenses

A Financial Industry Regulatory Authority investigation has resulted in a six-month suspension and a $5,000 fine for a former Morgan Stanley representative who improperly used firm funds for personal meal expenses.

According to FINRA, from January 2023 to May 2023, Justin Daniel Muccigrosso, a general securities representative who, at the time, was employed by Morgan Stanley Distribution, Inc., submitted $3,072.62 in meal expenses for 88 meals that did not comply with the firm’s policy.

FINRA reported that, during the time of Muccigrosso’s employment with Morgan Stanley Distribution, the firm did allow employees to charge overtime meals if they worked in their assigned firm office beyond 8 p.m. on weekdays or for four hours or more on weekends or holidays. Additionally, the meal must be consumed on-site.

Muccigrosso, however, had the meals delivered to a Morgan Stanley Distribution office to which he was not assigned and where he was not working. The office was located near his personal residence, and Muccigrosso often left delivery notes instructing that the meals be delivered to his home.

As a result, FINRA found that Muccigrosso’s actions violated FINRA Rule 2010, which requires brokers to observe high standards of commercial honor and just and equitable principles of trade.

Muccigrosso accepted and consented to the censure and the fine, without admitting or denying FINRA’s findings. FINRA did report that Muccigrosso repaid Morgan Stanley Distribution.

The matter originated from FINRA’s review of Morgan Stanley Distribution’s June 2023 filing of a Uniform Termination Notice for Securities Industry Registration, also known as Form U5, which revealed Muccigrosso’s activities.

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