Defendant Name: Morgan Stanley Investment Management Inc.

Defendant Type: Subsidiary of Public Company
Public Company Parent: Morgan Stanley
SIC Code: 6211
CUSIP: 61744644

Initial Case Details

Legal Case Name In the Matter of Morgan Stanley Investment Management Inc. and Sheila Huang
First Document Date 22-Dec-2015
Initial Filing Format Administrative Action
File Number 3-17016
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

Securities Act
• Sec 17(a)(3)
Other
• Sections 206(2), 206(4) Investment Advisers Act; Rule 206(4)-7 Investment Advisers Act; Failed reasonably to supervise Huang within the meaning of Section 203(e)(6) Investment Advisers Act

Related Violations Alleged

Morgan Stanley Investment Management Inc. is alleged to have aided and abetted Sheila Huang's violation of Section 17(a)(2) Investment Company Act (willfully/knowingly).
Morgan Stanley Investment Management Inc. is alleged to have caused Sheila Huang's violation of Section 17(a)(2) Investment Company Act.

Resolutions

First Resolution Date 22-Dec-2015
Headline Total Penalty and Disgorgement $8,125,000

Related Documents:

2015-287-Morgan Stanley 22-Dec-2015 Press Release--Administrative Proceeding
Morgan Stanley Settles Charges in "Parking" Scheme
On December 22, 2015, the SEC announced that "Morgan Stanley Investment Management has agreed to pay $8.8 million to settle charges that one of its portfolio managers unlawfully conducted prearranged trading known as 'parking' that favored certain advisory client accounts over others."
33-9998 22-Dec-2015 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933, Section 21C of the Securities Exchange Act of 1934, Sections 203(e), 203(f) and 203(k) of the Investment Advisers Act of 1940, and Sections 9(b) and 9(f) of the Investment Company Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On December 22, 2015, the SEC instituted administrative and cease-and-desist proceedings against Morgan Stanley Investment Management Inc. ("MSIM") and Sheila Huang. According to the SEC: "These proceedings concern a series of unlawful prearranged trades conducted by a portfolio manager/trader formerly employed by registered investment adviser MSIM which resulted in the undisclosed favorable treatment of certain MSIM advisory clients over others, in violation of MSIM's fiduciary duties to those clients."

Other Defendants in Action:

Sheila Huang

Related Actions:

In the Matter of SG Americas Securities LLC and Yimin Ge
SG Americas Securities LLC
Yimin Ge