SEC & DOJ Prosecutions
SEC Obtains $17 Million in Settlement of Administrative Proceeding Against Morgan Stanley
In the Matter of Morgan Stanley & Co. Incorporated, Respondent
- $17 Million
Respondent was found by the SEC to have failed to reasonably supervise four financial advisors, after it did not prevent or detect their violations of the federal securities laws in a fraudulent market timing scheme. The alleged scheme involved thousands of market timing trades in less than two years and generated approximately $1 million or more in net commissions or asset-based fees. Respondent was further found to have failed to make and keep records of customer orders placed after the market close.