Broker Couple Accused of Stealing From Elderly Client and Her Foundation

A couple who worked as brokers for Morgan Stanley in New Jersey have been barred from working in the state’s securities industry and must pay civil fines after they were accused of stealing $393,595 from a client and her charitable foundation, reports The Wall Street Journal.

John and Kathleen Mullins, who worked for Morgan Stanley from June 2002 to August 2006 before being terminated, were charged by the Financial Industry Regulatory Authority with defrauding the philanthropist Esther C. Weil, a 97-year-old nursing-home patient, and her foundation for their personal use. Vincent J. Oliva, the securities bureau chief, signed an order stating that the couple misappropriated client money from Morgan Stanley accounts that they oversaw to pay for their personal expenses without their client’s knowledge.

Susan Merrill, Finra’s enforcement chief, said, “Seniors are among the most vulnerable to financial wrongdoing. In this instance, an unprincipled broker took advantage of a trusting, elderly customer and her charitable foundation at a time when she was hospitalized and her health was failing. We will seek the strongest possible sanctions for this reprehensible, deceitful conduct.”

The amounts of the fines will be determined at a hearing.

Kathleen Mullins, reached at the couple’s home, said they had no immediate comment.

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