FINRA barred a former Morgan Stanley broker for failing to cooperate with an investigation into whether he was involving in undisclosed outside business activities and that he solicited a loan from client.

David Warren Olson agreed to the ban without admitting or denying the allegations, according to the regulator.

The firm was never made aware of the activity, per FINRA BrokerCheck records. Morgan Stanley terminated Olson's employment in December in 2016 after “an allegation he engaged in an outside business that was not presented to the firm for approval and solicited a loan from a client for that venture,” according to a disclosure from the firm on Olson's BrokerCheck record.

(Bloomberg News)
(Bloomberg News)


That same month, FINRA opened its investigation into the undisclosed activity, the regulator says. After initially cooperating, Olson began providing incomplete documentation in 2018, and later acknowledged he received the FINRA requests, but refused to produce the requested information, the regulator says.

Olson did not return requests for comment.

FINRA previously suspended Olson for failing to repay Morgan Stanley for five promissory notes he received, which in total topped $400,000, according to the regulator.

In a separate arbitration case, Morgan Stanley was awarded compensatory damages plus interest in November.

Olson has eight client complaints on his BrokerCheck record, with the oldest being listed as 1991 and the most recent 2011.

Morgan Stanley did not respond to requests for comment on Olson's ban from the industry.

Olson worked with seven firms over an almost three-decade-long career, per BrokerCheck. He began his career with PaineWebber in 1987. He worked with UBS, Merrill Lynch and Banc of America Investment Services, among others, before moving to Morgan Stanley in 2010.

Sean Allocca

Sean Allocca is the associate editor of Financial Planning, On Wall Street and Bank Investment Consultant.