Finra Bars Morgan Stanley Broker Fired Over Unauthorized Account Access

The Financial Industry Regulatory Authority barred a former Morgan Stanley broker in Phoenix after he declined to participate in its investigation into whether he had accepted instructions from an unauthorized third party to move customer funds. Finra said that James F. Tighe, a 26-year industry veteran, violated Rules 8210 and 2010 by repeatedly failing to comply with requests for documents, information and on-the-record testimony, which “impeded” its investigation, according to a Finra enforcement decision. “A bar is remedial because it will protect the investing public from a person who refuses to comply with his clear duty under FINRA’s rules to cooperate with a FINRA investigation,” Finra Hearing Officer Lucinda O. McConathy wrote in the decision, which was finalized on June 22. Tighe had spent 16 years at Morgan Stanley before the wirehouse fired him in January 2025 over concerns about his “acceptance of instructions from a third party” without receipt of written authorization, failure to disclose potentially unauthorized activity by that third party and use of a personal device for business purposes, “among other concerns,” according to his BrokerCheck record. Morgan Stanley later amended the U5 to disclose that it had in May 2025 settled a customer complaint alleging that Tighe had processed withdrawal and other disbursements requested by the “customer’s agent” without proper authorization. The firm paid $1.4 million to settle the complaint, which had sought $16 million in damages, according to BrokerCheck. A Morgan Stanley spokesperson declined to comment. Tighe started his career at Merrill Lynch in 1998 and joined Morgan Stanley’s Smith Barney predecessor in 2008. Finra began its investigation in April 2025 based on the initial U5 filing, according to the hearing officer’s decision. Although Tighe acknowledged receiving the request and obtaining an extension, his attorney later told the regulator that he would not provide the requested materials and argued that Morgan Stanley already possessed them. Finra said that Morgan Stanley’s access to the information did not preclude him from complying with its request and noted that he also failed to appear for on-the-record testimony. The bar was issued as part of a default judgment. An industry bar is Finra’s only tool to compel testimony as the self-regulator lacks subpoena power. Neither Tighe nor his lawyer, Paul J. Roshka Jr. with Jennings Haug Keleher McLeod Waterfall in Phoenix, responded to requests for comment.