SEC fines Morgan Stanley $15M to settle allegations of theft of client funds
By 
Adrianne Appel2024-12-10T18:35:00
A lack of supervision and internal controls at Morgan Stanley Smith Barney (MSSB) allowed four of its investment advisers to steal millions from customers before the behavior was detected, the SEC said Tuesday in charging the firm.
Federal laws make it illegal for investment advisers to remove money from their clients’ accounts without their express permission. Advisers are not permitted to move client funds into their personal accounts.
MSSB, which agreed to pay $15 million to settle the matter, also failed to adopt policies and procedures until December 2022 to prevent and discover thefts by employees, the SEC said.
Related articles
-
News BriefMorgan Stanley fined $1.6M by FINRA over municipal securities closeouts
Morgan Stanley will pay a $1.6 million fine levied by the Financial Industry Regulatory Authority for failing to close out certain municipal securities transactions over a five-year period.
-
News BriefMorgan Stanley settles with states for $6.5M over mishandled data
Morgan Stanley agreed to pay $6.5 million as part of a settlement with six states requiring the firm to strengthen its data security after actions it took compromised the personal data of millions of customers.
-
ArticleCompliance deficiencies highlighted in $1.8B crackdown on messaging apps
Eleven banks, investment firms, and their affiliates will pay a total of more than $1.8 billion in fines for “widespread and longstanding failures” in monitoring, maintaining, and preserving electronic communications by employees.
More from Regulatory Enforcement
-
News BriefDelta to pay $8.1 million over False Claims Act violations tied to pandemic aid
Delta Air Lines agreed to pay $8.1 million over allegations it violated the False Claims Act by exceeding employee compensation limits it agreed to when taking federal pandemic aid money.
-
News BriefDOJ and CFTC close investigations into crypto betting platform Polymarket, report says
The U.S. Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) reportedly ended two investigations into Polymarket, a popular online crypto betting service that calls itself a “prediction market.” The move continues the Trump administration’s pro-crypt agenda.
-
News BriefFTC fines telehealth firm over deceptive weight-loss claims and fake reviews
The U.S. Federal Trade Commission said it has settled with telemedicine service Southern Health Solutions, Inc. over allegations the company used deceptive pricing and weight-loss claims, along with fake reviews and testimonials, to sell its weight-loss programs.