NASD Accuses Morgan Stanley Of Fraud

Law360, New York (December 19, 2006, 12:00 AM EST) -- The National Association of Securities Dealers accused Morgan Stanley on Tuesday of repeatedly witholding key documents in an arbitration proceeding and falsely claiming they were destroyed on September 11, 2001.

The NASD’s complaint said that between October 2001 and March 2005, Morgan Stanley routinely denied requests for e-mails from claimants in arbitration proceedings and regulators.

The regulating body also took issue with Morgan Stanley’s repeated claims that many of the e-mails it had backlogged were lost when the company’s e-mail servers, which were housed in the...
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