Defendant Name: Morgan Stanley & Co. LLC

Defendant Type: Subsidiary of Public Company

Document Reference: 2024-6

Document Details

Legal Case Name In the Matter of Morgan Stanley & Co. LLC
Document Name 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
Document Date 12-Jan-2024
Document Format Administrative Proceeding
File Number 3-21825
Allegation Type Other
Document Summary 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."

Disgorgement & Penalty Information

Resolutions
Censured
Monetary Penalties:

Disgorgement

Individual:     $138,000,000.00 Shared:    

Civil Penalty

Individual:     $83,000,000.00 Shared:    

Pre-Judgment Interest

Individual:     $28,000,000.00 Shared:    

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."

Related Actions:

In the Matter of Pawan Kumar Passi
Pawan Kumar Passi