Morgan Stanley Can't Recover Ex-Brokers' Bonus Loans

Law360, New York (August 11, 2010, 6:09 PM EDT) -- An attorney for a former broker convicted of conspiracy and securities fraud hailed on Wednesday a Financial Industry Regulatory Authority arbitration panel ruling that rejected Morgan Stanley & Co. Inc.'s bid to force his client and another ex-broker to pay back their $4.45 million signing bonus loans.

Zachary Johnson, who represented Eric Butler before the FINRA panel, told Law360 that he considered the arbitrators' decision a victory.

"Mr. Butler is vigorously pursuing his appeal, and he believes that this is the start of the turnaround for...
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