- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2024-01-12T15:04:00
Financial services giant Morgan Stanley agreed to pay approximately $249 million as part of settlements with the Securities and Exchange Commission (SEC) and Department of Justice (DOJ) to resolve an admitted fraud scheme involving block trades perpetrated, in part, by a former senior employee at the firm.
In settling with the SEC, Morgan Stanley agreed to pay approximately $138 million in disgorgement, about $28 million in prejudgment interest, and an $83 million civil penalty, the agency announced Friday. The disgorgement and prejudgment interest totals will be deemed partially satisfied by the $137 million in forfeiture and restitution the DOJ ordered the firm to pay.
The DOJ also levied a fine of nearly $17 million that reflected a 35 percent discount for full cooperation. That fine was credited as part of the SEC’s penalty.
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