From at least August 2014 to June 2022, Eisler allocated shares of new issues to a customer in exchange for a portion of the customer’s realized profits when the stock was sold, in the form of excessive compensation on unrelated transactions. Moreover, Eisler shared in the profits in his customer’s account despite not obtaining prior written authorization from his firm or from the customer. As a result, he violated FINRA Rules 5131(a), 2150(c), and 2010. Eisler also used text messages on his personal device to conduct securities business even though Morgan Stanley prohibited their use.

Joseph Stone failed to comply with FINRA Rule 3170 (the Taping Rule), which requires certain firms to tape record all telephone conversations between their registered persons and existing and potential customers. Between September 2021 and July 2024, the firm’s special written procedures were not reasonably designed to comply with the Taping Rule. In certain instances, between September 2021 and May 2022, the firm failed to record all conversations as required by the Taping Rule.