Former Morgan Stanley Smith Barney Complex Manager and Senior Vice President Frank LaRosa’s public records have been updated with details of an investigation into alleged spending violations following his sudden discharge from the firm in May.

LaRosa was terminated from Morgan Stanley Smith Barney on May 12, public Financial Industry Regulatory Authority (FINRA) records now show. They also detail concerns raised through an investigation.

LaRosa’s exit came after he was promoted in 2010 to complex manager for Philadelphia after previously serving in that same role in Southern New Jersey.

The incidents of concern leading to LaRosa’s departure include the employment and compensation for LaRosa’s wife in his branch, and the purchase of more than $60,000 in gift cards as well as personal items from a retail vendor which were then charged to the firm.

More details about the investigation were not disclosed. LaRosa declined to comment for this article when reached by phone on Tuesday. A Morgan Stanley Smith Barney spokesperson declined to comment.

The allegations against LaRosa mark the first disciplinary incidents in his professional history, which began in 1995 at Prudential Securities, where he worked for almost four years, followed by almost 10 years at Citigroup Global Markets.

LaRosa had been employed with Morgan Stanley Smith Barney since June 2009, and was honored this year by On Wall Street magazine in its Branch Manager of the Year Awards.


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