SEC charges Morgan Stanley with securities fraud

[Roland99]

Source: MarketWatch

The Securities and Exchange Commission on Tuesday charged Morgan Stanley Investment Management with violations of securities laws for its scheme that charged a fund and its investors for advisory services they never got. An investigation uncovered that Morgan Stanley, as the primary investment adviser to The Malaysia Fund told investors and the fund's board of directors that it was using a sub-adviser to give advice and do research. However, the sub-adviser did not provide the promised services even as the fund annually renewed the contract at an eventual cost of $1.845 million to investors. In order to settle the charges, Morgan Stanley MS -3.20% will pay more than $3.3 million, the SEC said. "We want to take the advisory fee setting process out of the shadows by scrutinizing the role of investment advisers and fund board members in vetting fee arrangements with registered funds," said Robert Khuzami, director of the SEC's Division of Enforcement, in announcing the penalty.

Read more: http://www.marketwatch.com/story/sec-charges-morgan-stanley-with-securities-fraud-2011-11-16?link=MW_home_latest_news

[AngryAmish]

1. I read that as Morgan Freeman charged...

damn, i'm fucked up

[dixiegrrrrl]

2. No CRIMINAL fraud charges, again.

I do not even believe that fines are actually paid, either. I think there is some sort of accounting gimmick, no actual cost to "guilty" party. SEC is too controlled and owned for any real cost.

[LuckyLib]

3. Surprise, surprise! Criminals one and all.

[snot]

4. Let's see if a fine's ever levied that's big enough to actually deter anyone.

[sarcasmo]

5. More wall street criminals that should be in jail.

[Javaman]

6. the continuing charade by the SEC.

just more kabuki theater by the group of morons controlled and staffed by wall street.

the thin veneer of this headline gives all the appearance of them doing their jobs, but in the end, no fines will be paid, no one will go to jail and morgan stanley will somehow make more money off of it.

Matt Tiabbi has been reporting extensively on this whole mess for a while now. Anyone following his articles and blog will know this will amount to nothing.

This is nothing more than a show of bullshit to try and pacify the pissed off public.

don't be fooled.

[castnet55]

7. Morgan Stanley

This is the kind of stuff that really gets to me. I'd really love to see some of these jerks get some real jail time once in a while

[alfredo]

8. It's chickenfeed. They spend that much a month on cocaine.

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