Editing Morgan Stanley (section)

===2010s===

In April 2010, the Commodity Futures Trading Commission announced the firm agreed to pay $14&nbsp;million related to an attempt to hide prohibited trading activity in oil futures.<ref>{{cite web |url=http://www.mcclatchydc.com/2010/04/29/93170/in-another-wall-street-misdeed.html |title=In another Wall Street misdeed, Morgan Stanley settles oil-trading flap |work=McCaltchyDC |access-date=April 20, 2012}}</ref>

Garth R. Peterson, one of Morgan Stanley's highest-ranking real estate executives in China, pleaded guilty on April 25, 2012 to violating U.S. federal anti-corruption laws. He was charged with secretly acquiring millions of dollars' worth of property investments for himself and a Chinese government official.  The official steered business to Morgan Stanley.<ref>{{cite news|url=https://dealbook.nytimes.com/2012/04/25/morgan-stanley-executive-pleads-guilty-to-violating-anticorruption-laws/|title=Morgan Stanley Executive Pleads Guilty to Violating Anticorruption Laws|access-date=April 25, 2012 | work=The New York Times|first=Peter|last=Lattman|date=April 25, 2012}}</ref>

Morgan Stanley agreed to pay a $5&nbsp;million fine to the [[Commodity Futures Trading Commission]] and an additional $1.75&nbsp;million to [[Chicago Mercantile Exchange|CME]] and the [[Chicago Board of Trade]]. Morgan Stanley employees improperly executed fictitious sales in Eurodollar and Treasury Note futures contracts.<ref>{{cite web |url=http://www.businessweek.com/news/2012-06-05/morgan-stanley-will-pay-5-million-to-resolve-cftc-trade-claims|archive-url=https://web.archive.org/web/20130506105552/http://www.businessweek.com/news/2012-06-05/morgan-stanley-will-pay-5-million-to-resolve-cftc-trade-claims|url-status=dead|archive-date=May 6, 2013|title=Morgan Stanley Will Pay $6.75M Over Claims|access-date=June 7, 2012}}</ref>

On August 7, 2012, it was announced that Morgan Stanley would pay $4.8&nbsp;million in fines to settle a price-fixing scandal, which had been estimated to have cost New Yorkers $300&nbsp;million to date. Morgan Stanley made no admission of any wrongdoing; however, the Justice Department commented that they hoped this would "send a message to the banking industry".<ref>{{cite news| url=http://www.huffingtonpost.com/2012/08/07/morgan-stanley-price-fixing_n_1753637.html | work=Huffington Post | title=Bank To Pay $4.8 Million To Settle Charges That Cost Customers $300 Million | date=August 7, 2012}}</ref>

In ''[[Chip Skowron|Morgan Stanley v. Skowron]]'', 989 F. Supp. 2d 356 (S.D.N.Y. 2013), applying New York's [[faithless servant]] doctrine to a case involving Morgan Stanley's hedge fund subsidiary, [[United States federal judge|United States District Judge]] [[Shira Scheindlin]] held that a [[hedge fund]]'s employee engaging in [[insider trading]] in violation of his company's [[Company code of conduct|code of conduct]], which also required him to report his misconduct, must repay his employer the full $31&nbsp;million (~${{Format price|{{Inflation|index=US-GDP|value=31000000|start_year=2013}}}} in {{Inflation/year|US-GDP}}) his employer paid him as compensation during his period of faithlessness.<ref name="auto6">{{Cite book|url=https://books.google.com/books?id=3RaGDwAAQBAJ&q=%22faithless+servant%22&pg=PA472|title=Employment Law: Private Ordering and Its Limitations|first1=Timothy P.|last1=Glynn|first2=Rachel S.|last2=Arnow-Richman|first3=Charles A.|last3=Sullivan|date= 2019|publisher=Wolters Kluwer Law & Business|isbn=9781543801064|via=Google Books}}</ref><ref name="auto4">{{Cite web|url=https://www.ibtimes.co.uk/faithless-ex-morgan-stanley-fund-manager-ordered-repay-31m-former-employer-1429819|author=Jerin Matthew|title='Faithless' Ex-Morgan Stanley Fund Manager Ordered to Repay $31m to Former Employer|date=December 20, 2013|website=International Business Times UK}}</ref><ref>{{Cite web|url=https://dealbook.nytimes.com/2013/12/23/the-huge-costs-of-being-a-faithless-servant/|title=The Huge Costs of Being a 'Faithless Servant'|first=Peter J.|last=Henning|date=December 23, 2013|website=New York Times DealBook}}</ref><ref>{{Cite web|url=https://www.greenwichtime.com/news/article/Morgan-Stanley-seeks-10-2-million-from-convicted-4193127.php|title=Morgan Stanley seeks $10.2 million from convicted former trader|date=January 15, 2013|work=GreenwichTime|access-date=July 30, 2019|archive-date=June 27, 2019|archive-url=https://web.archive.org/web/20190627172218/https://www.greenwichtime.com/news/article/Morgan-Stanley-seeks-10-2-million-from-convicted-4193127.php|url-status=dead}}</ref> Judge Scheindlin called the insider trading the "ultimate abuse of a [[portfolio manager]]'s position".<ref name="auto4" /> The judge also wrote:"In addition to exposing Morgan Stanley to government investigations and direct financial losses, Skowron's behavior damaged the firm's reputation, a valuable corporate asset."<ref name="auto4" />

In February 2014, Morgan Stanley agreed to pay $1.25 billion to the US government, as a penalty for concealing the full risk associated with mortgage securities with the [[Federal Housing Finance Agency]].<ref name=bloombergfhfa>{{cite news|url=https://www.bloomberg.com/news/articles/2014-02-04/morgan-stanley-agrees-to-1-25-billion-settlement-over-mbs-sales|title=Morgan Stanley Reaches $1.25 Billion Settlement of FHFA Suit|work=[[Bloomberg News]]|last=Moore|first=Michael|date=February 4, 2014|access-date=June 1, 2014}}</ref>

In September 2014, Morgan Stanley agreed to pay $95&nbsp;million (~${{Format price|{{Inflation|index=US-GDP|value=95000000|start_year=2014}}}} in {{Inflation/year|US-GDP}}) to resolve a lawsuit by the Public Employees' Retirement System of Mississippi (MissPERS) and the West Virginia Investment Management Board.  Morgan Stanley was accused of misleading investors in mortgage-backed securities.<ref>{{cite news| url=https://www.reuters.com/article/us-morganstanley-lawsuit/morgan-stanley-to-pay-95-million-in-u-s-mortgage-debt-settlement-idUSKBN0H401Q20140909| work=[[Reuters]] | title=Morgan Stanley to pay $95 million in U.S. mortgage-debt settlement | date=September 9, 2014}}</ref>

In May 2015, Morgan Stanley was fined $2&nbsp;million (~${{Format price|{{Inflation|index=US-GDP|value=2000000|start_year=2015}}}} in {{Inflation/year|US-GDP}}) for [[short interest]] reporting and rule violations for more than six years, by FINRA.<ref>{{cite news| url=https://www.usatoday.com/story/money/2015/05/13/morgan-stanley-fined-by-finra/27230563 |work=USA Today | title=Morgan Stanley fined $2M over short-interest violations | date=May 13, 2015}}</ref>

February 2016, Morgan Stanley will pay $3.2&nbsp;billion (~${{Format price|{{Inflation|index=US-GDP|value=3200000000|start_year=2016}}}} in {{Inflation/year|US-GDP}}) to settle with state and federal authorities over Morgan Stanley's creation of mortgage-backed bonds before the [[2008 financial crisis]].<ref>{{cite news| url=https://www.nytimes.com/2016/02/12/business/dealbook/morgan-stanley-to-pay-3-2-billion-over-flawed-mortgage-bonds.html |work=[[The New York Times]] |title=Morgan Stanley to Pay $3.2 Billion Over Flawed Mortgage Bonds | date=February 11, 2016}}</ref>

August 2016, Morgan Stanley Hong Kong Securities Ltd. was fined HK$18.5&nbsp;million ($2.4&nbsp;million) by Hong Kong's securities regulator, Securities and Futures Commission, for violations of Hong Kong's Code of Conduct. Included was Morgan Stanley's failure to avoid a conflict of interest between principal and agency trading.<ref>{{cite news| url=https://www.zacks.com/stock/news/229220/morgan-stanley-fined-24m-on-internal-control-failures |work=Zacks.com| title=Morgan Stanley Fined $2.4M on Internal Control Failures | date=August 25, 2016}}</ref>

December 2016, another unit of Morgan Stanley paid $7.5&nbsp;million (~${{Format price|{{Inflation|index=US-GDP|value=7500000|start_year=2016}}}} in {{Inflation/year|US-GDP}}) to settle customer protection rule violations.<ref name="reuters1">{{cite news|title=Morgan Stanley to pay $13 million for overbilling clients: SEC|url=https://www.reuters.com/article/us-sec-morgan-stanley-idUSKBN14X27X|access-date=January 15, 2017|work=Reuters|date=January 13, 2017}}</ref>

In January 2017, the corporation was fined $13&nbsp;million (~${{Format price|{{Inflation|index=US-GDP|value=13000000|start_year=2017}}}} in {{Inflation/year|US-GDP}}) due to overbilling and violating investor asset safeguarding custody rules. Morgan Stanley agreed to pay the fine without commenting on the charges.<ref name="reuters1" />

Douglas E. Greenberg, a broker, was fired in 2018 after it was reported that four women from [[Lake Oswego, Oregon]], had sought police protection against him over a 15-year period on allegations of harassment, threats, and assault.<ref name=NYT>{{Cite news|url=https://www.nytimes.com/2018/03/28/business/morgan-stanley-douglas-greenberg-financial-adviser.html|title=Morgan Stanley Knew of a Star's Alleged Abuse. He Still Works There.|last=Flitter|first=Emily|date=March 28, 2018|work=The New York Times|access-date=March 29, 2018|language=en-US|issn=0362-4331}}</ref><ref name=Live>{{Cite news|url=http://www.oregonlive.com/business/index.ssf/2018/03/morgan_stanley_aware_of_abuse.html|title=Morgan Stanley knew of abuse allegations against Lake Oswego broker: report|work=OregonLive.com|access-date=March 29, 2018|language=en-US}}</ref><ref>{{cite web |url=https://www.nytimes.com/2018/04/03/business/morgan-stanley-broker-fired-abuse.html |title=Morgan Stanley Fires Broker With History of Abuse Claims |work=The New York Times |last=Flitter |first=Emily |date=April 3, 2018 |access-date=August 20, 2021 |url-access=subscription}}</ref> According to the report, Morgan Stanley executives were aware of the allegations, and knew of at least two arrests and a federal [[subpoena]] against him, but did not take any action.<ref name=NYT /><ref>{{Cite news|url=https://www.thestar.com/business/2018/03/30/morgan-stanleys-executives-knew-of-an-employees-alleged-abuse-he-still-works-there.html|title=Morgan Stanley's executives knew of an employee's alleged abuse, he still works there|work=Toronto Star|access-date=March 30, 2018|language=en}}</ref> The story was called a [[Me Too movement|#MeToo]] moment for Portland's financial service industry.<ref name=Live /> He managed tens of millions of dollars (~${{Format price|{{Inflation|index=US-GDP|value=10000000|start_year=2018}}}} in {{Inflation/year|US-GDP}}), and had made the 2018 ''Forbes'' list for top wealth advisors in Oregon.<ref name=NYT /><ref>{{Cite web|url=https://www.forbes.com/best-in-state-wealth-advisors/#3f29d9bb291d|title=Best-In-State Wealth Advisors|website=Forbes|access-date=March 29, 2018}}</ref>

In December 2018, FINRA announced a $10&nbsp;million (~${{Format price|{{Inflation|index=US-GDP|value=10000000|start_year=2018}}}} in {{Inflation/year|US-GDP}}) fine against Morgan Stanley for failures in its anti-money laundering compliance. Morgan Stanley violated the Bank Secrecy Act over a period of five years.<ref>{{Cite web|url=http://lawreview.syr.edu/finra-fines-morgan-stanley-for-five-years-of-ineffective-anti-money-laundering-monitoring/|title=FINRA Fines Morgan Stanley For Five Years Of Ineffective Anti-Money Laundering Monitoring – Syracuse Law Review|last=Buckman|first=Caitlyn|language=en-US|access-date=November 17, 2019}}</ref>

In April 2019, Morgan Stanley agreed to pay $150&nbsp;million (~${{Format price|{{Inflation|index=US-GDP|value=150000000|start_year=2019}}}} in {{Inflation/year|US-GDP}}) to settle charges that it had misled two large California public pension funds about the risks of mortgage-backed securities.<ref>{{Cite news|url=https://in.reuters.com/article/us-morgan-stanley-california-idINKCN1S12DC|archive-url=https://web.archive.org/web/20190426215753/https://in.reuters.com/article/us-morgan-stanley-california-idINKCN1S12DC|url-status=dead|archive-date=April 26, 2019|title=Morgan Stanley to pay $150 million to settle California crisis-era mortgage charges|date=April 25, 2019|work=Reuters|access-date=November 17, 2019|language=en}}</ref> California Attorney General [[Xavier Becerra]] commented: "Morgan Stanley lied about the risk of its products and put profits over teachers and public employees who relied on its advice." Morgan Stanley denied wrongdoing.<ref>{{Cite web|url=https://oag.ca.gov/news/press-releases/attorney-general-becerra-announces-150-million-settlement-against-morgan-stanley|title=Attorney General Becerra Announces $150 Million Settlement Against Morgan Stanley for Misleading California's Teachers and Workers with Pensions|date=April 25, 2019|website=State of California - Department of Justice - Office of the Attorney General|language=en|access-date=November 17, 2019}}</ref>

In November 2019, Morgan Stanley fired or placed on leave four traders for suspected securities [[mismarking]]. The firm suspected that $100–140&nbsp;million in losses were concealed by the mismarking of the value of the securities.<ref>{{Cite web|url=https://www.bloomberg.com/news/articles/2019-11-28/morgan-stanley-ousts-fx-traders-amid-multi-million-dollar-loss|title=Morgan Stanley Ousts FX Traders as It Probes Concealed Loss|date=November 28, 2019|work=Bloomberg|author=Stefania Spezzati, Donal Griffin, and Viren Vaghela}}</ref>

Morgan Stanley paid a $1.5&nbsp;million fine to settle SEC claims that it put client money into more expensive mutual fund share classes when cheaper options were available despite representations to clients that it used tools to find the least costly option.<ref>{{Cite news|url=https://citywireusa.com/registered-investment-advisor/news/sec-fines-morgan-stanley-1-5m-over-alleged-share-class-violations/a1291616|title=SEC fines Morgan Stanley $1.5m over alleged share class violations|work=sjo3ekt.js|access-date=November 17, 2019|language=en}}</ref>