Wednesday, 20 August 2014
Last updated 16 min ago
Dec 19 2007 | 12:08pm ET
Morgan Stanley has agreed to pay $17 million to settle charges that it allowed hedge fund clients to deceptively market-time mutual funds four years ago.
The Securities and Exchange Commission had charged the firm with failure to supervise four employees who allegedly set up multiple accounts for hedge funds to allow them to skirt mutual funds’ market-timing protections in 2002 and 2003.
Two of those former financial advisers, Darryl Goldstein and Christopher O’Donnell, were charged by the SEC last week; a third, Marc Plotkin, has settled with the agency for $90,000 without admitting or denying the charges. The fourth adviser has not been identified.
Morgan Stanley consented to the settlement without admitting or denying the charges.
“Morgan Stanley is please to settle this matter involving the behavior of four Financial Advisors that occurred more than four years ago,” the firm said in a statement. “We have since adopted new policies and procedures to detect and prevent market-timing and late-trading.”
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note