SEC Fines Morgan Stanley $3.6 Million over Theft of Clients Funds

[kreslik.news]

The Securities and Exchange Commission today ordered Morgan Stanley to pay $3.6 million in fines to settle accusations that it failed to prevent a former wealth manager from stealing clients’ funds.

As part of the settlement, the bank was ordered to cooperate with auditors’ inquiries and to establish better procedures for complying with federal laws that protect investors’ holdings. Morgan Stanley Smith Barney (MSSB) neither admitted nor denied wrongdoing.

The SEC said Barry Connell, who worked in MSSB office in New Jersey from 2008 to 2016, stole money from accounts belonging to four advisory clients’ accounts. He was charged with ... (read more)