LAWSUITS NEWS & LEGAL INFORMATION
Market Timing
Washington, DC: (Dec-18-07) The US Securities and Exchange Commission brought charges against Morgan Stanley, alleging that the company failed to supervise four former financial advisers who are accused of engaging in deceptive trading practices. The suit claimed that the advisers opened multiple accounts for their hedge fund customers to allow the hedge funds to engage in market timing from 2002 until 2003. Market timing is the practice of short-term trading in mutual fund shares to exploit the inefficiencies of mutual fund pricing.
As part of a settlement reached, company spokespersons confirmed that the company had agreed to pay $17 million to resolve allegations. Additionally, SEC officials stated that one of the former advisers, Marc Plotkin, agreed to pay $90,000 to settle the case without admitting or denying the charges. Plotkin was accused of assisting another adviser in the scheme. Morgan Stanley agreed to settle without admitting or denying the charges, stating that it wished to avoid the costs and uncertainties of litigation. [REUTERS: MARKET TIMING]
Published on Dec-22-07
As part of a settlement reached, company spokespersons confirmed that the company had agreed to pay $17 million to resolve allegations. Additionally, SEC officials stated that one of the former advisers, Marc Plotkin, agreed to pay $90,000 to settle the case without admitting or denying the charges. Plotkin was accused of assisting another adviser in the scheme. Morgan Stanley agreed to settle without admitting or denying the charges, stating that it wished to avoid the costs and uncertainties of litigation. [
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