Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

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Thursday, September 20, 2007

SEC Expected to Charge Brokerage Employees in Stock-Lending Fraud

The SEC is expected to file charges against current and former employees at several brokerage firms (including Janney Montgomery Scott, Morgan Stanley, and Van der Moolen) alleging abusive stock-lending practices.  In addition, criminal charges may be filed.  The investigation focused on whether the employees took kickbacks for arranging stock-lending agreements (in connection with short-selling).  Janney Montgomery Scott settled charges with the NYSE over the summer.  WSJ, Civil Charges Are Expected In Probe of Stock Lending.

http://lawprofessors.typepad.com/securities/2007/09/sec-expected-to.html

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