Morgan Stanley Awarded $4M For Brokers' Departure

Law360, New York (June 10, 2011, 7:40 PM EDT) -- The Financial Industry Regulatory Authority on Tuesday ordered two Morgan Stanley Smith Barney LLC brokers who left to form their own firm to pay more than $4 million for breaching employment pacts and to return or destroy any trade secrets they took.

A three-member FINRA arbitration panel ruled that Sean Anthony Lehmann and Kurt J. Halverstadt each breached certain unidentified promissory notes when they departed from Morgan Stanley in 2009 to form the registered investment advisory firm Capital Investment Management Group Inc.

For each broker's breach...
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