August 18, 2016
The Secretary of State reached http://www.sos.ms.gov/ConsentAgreementsFinalOrders/Morgan%20Stanley%20consent%20order%208162016.pdf">a $4.7 million settlement with Morgan Stanley, after a years-long investigation into the Ridgeland branch office following complaints from customers who had investment accounts with financial representatives there.
Morgan Stanley did not admit or deny the Secretary of State's allegations but has agreed to pay the over $4.2 million back to investors, the majority of whom hold accounts in Mississippi. Additionally, Morgan Stanley will pay $100,000 in penalty fees to the state as well as $400,000 for the costs of the investigation.
“This is a significant settlement which is a culmination of hard work by the Division on behalf of investors,” Secretary Delbert Hosemann said in a press release. “It exemplifies the important investor protection role the Agency serves to safeguard our citizens through fair regulation and enforcement and hopefully deterrence.”
The fund Morgan Stanley must set up by next month to settle their dues with investors impacts 259 accounts--194 of those accounts are in Mississippi. Hosemann's office is sending letters to those Mississippians affected by the settlement so that they can participate in the fund and get their money back.
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