SEC Targets Ex-Trader Over Stock Loan Kickbacks

Law360, New York (March 9, 2010, 6:51 PM EST) -- The U.S. Securities and Exchange Commission has sued a former stock loan trader for Morgan Stanley & Co. and Banc of America Securities LLC for allegedly participating in a fraud on Wall Street's stock loan desks.

In a suit filed Tuesday in the U.S. District Court for the Eastern District of New York, the SEC says Salvatore Zangari, 33, participated in a cash kickback scheme from March 2004 through December 2005.

Zangari received cash from Anthony Lupo, a stock loan finder located in Brooklyn, in exchange...
To view the full article, register now.