Defendant Name:
Morgan Stanley & Co. LLC
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
Morgan Stanley
SIC Code:
6282
CUSIP:
61744644
Initial Case Details
Legal Case Name
In the Matter of Morgan Stanley & Co. LLC
First Document Date
12-Jan-2024
Initial Filing Format
Administrative Action
File Number
3-21825
Allegation Type
Broker Dealer
Violations Alleged
•
Section 15(g) Exchange Act
Resolutions
First Resolution Date
12-Jan-2024
Headline Total Penalty and Disgorgement
See Related Documents
Related Documents:
34-99336
12-Jan-2024
Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Section 15(b) and 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On January 12, 2024, the SEC instituted settled administrative and cease-and-desist proceedings against Morgan Stanley & Co. LLC, stating: "This matter involves fraudulent conduct perpetrated by two employees on Morgan
Stanley’s Equity Syndicate Desk in the Americas (“Syndicate Desk”) involving large blocks of
stock that the investment banking firm purchased from investors."
2024-6
12-Jan-2024
Press Release--Administrative Proceeding
SEC Charges Morgan Stanley and Former Executive Pawan Passi with Fraud in Block Trading Business; Firm agrees to pay more than $249 million to settle fraud charges and
for failing to enforce information barriers
On January 12, 2024, the SEC stated that: ''[It] charged investment banking
giant Morgan Stanley & Co. LLC and the former head of its equity syndicate desk, Pawan Passi, with a multi-year
fraud involving the disclosure of confidential information about the sale of large quantities of stock known as “block
trades.” The SEC also charged Morgan Stanley with failing to enforce its policies concerning the misuse of material
non-public information related to block trades."
34-101215
27-Sep-2024
Administrative Proceeding
Order Creating and Consolidating Fair Funds, and Setting Deadline to Submit a Proposed Plan of Distribution
The Commission ordered that: "A. Pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, the Passi Fair Fund is created so that the civil penalty paid by Passi can be distributed for the benefit of harmed investors; B. . . . the Morgan Stanley Fair Fund is created so that the civil penalty paid by Morgan Stanley can be added to the disgorgement and prejudgment interest paid by Morgan Stanley for distribution for the benefit of harmed investors; C. The Passi Fair Fund is consolidated with the Morgan Stanley Fair Fund for purposes of distribution administration; and D. . . . the Division will submit a Proposed Plan of distribution for the consolidated Fair Fund by February 28, 2025."
34-101317
11-Oct-2024
Administrative Proceeding
Order Appointing Tax Administrator
The SEC ordered that "Miller Kaplan Arase LLP is appointed as the Tax Administrator for the QSF in the above-referenced proceeding."
34-102488
26-Feb-2025
Administrative Proceeding
Notice of Proposed Plan of Distribution and Opportunity for Comment
The Commission stated: "Notice is hereby given . . . that the Division of Enforcement has submitted to the Commission a proposed plan of distribution (the "Proposed Plan") for the distribution of monies paid in the above-captioned matters."
