Breaking Legal News - POSTED: 2007/03/02 17:16
Randi Collotta, former in-house counsel at the global compliance division of Morgan Stanley, is alleged to have provided material, non public information regarding certain public companies' planned merger and acquisition activities. A broker at Banc of America Securities is alleged to have accepted cash kickbacks to allocate public offering shares to a hedge fund. Four defendants have pleaded guilty to conspiracy, securities fraud, and commercial bribery charges. Guttenberg, if convicted, faces a maximum prison term of 90 years.
Morgan Stanley agreed to pay a $10 million settlement to the Securities and Exchange Commission last June without admitting or denying allegations made by the SEC that the corporation had failed to protect against potential misuse of insider trading information as required by law.