Morgan Stanley To Pay $1M For Broker’s Fraud

Law360, New York (October 17, 2006, 12:00 AM EDT) -- A broker who allegedly defrauded clients out of hundreds of thousands of dollars will cost investment bank Morgan Stanley DW Inc. $1 million in fines.

Morgan Stanley will pay $740,964.18 in restitution for the fraud, as well as a $300,000 penalty.

The bank reached the settlement with New York Attorney General Eliot Spitzer, who launched an investigation in 2003 after regulators discovered that Morgan Stanley broker Gabriele Tamar Smith had been mishandling accounts.

“Morgan Stanley is pleased to resolve this matter involving actions by a former...
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