Morgan Stanley executive guilty of fraud and conspiracy
A former executive director and head of domestic securities lending for Morgan Stanley has been convicted of securities fraud conspiracy.
Darin Demizio, who also was convicted of wire fraud and making a false statement to the FBI after a weeklong trial, faces up to 25 years on the fraud counts and five years on the false statement count.
The conviction is the 29th stemming from an ongoing industry-wide investigation into allegations of bribery and kickbacks in the securities lending industry, also called the “stock-loan” industry, the U.S. Justice Department said.
The department said 28 defendants previously pleaded guilty in Brooklyn, including former lending traders at A.G. Edwards and Sons Inc.; Janney Montgomery Scott LLC; JP Morgan Chase; Kellner Dileo & Co. Inc.; Oppenheimer & Co. Inc.; Morgan Stanley; National Investors Services, also known as TD Waterhouse; Nomura Securities International Inc.; Pax Clearing Corp.; PFPC Worldwide; Schonfeld Securities and Van der Moolen Specialists.
What was that about “birds of a feather”?
The SEC is a club for useless country club jerk-offs.
The Feds should fire the entire top tier and start afresh.
It was founded in the 1930′s to do all the oversight they’ve assiduously avoided doing since the days of Newt the Contractor. Let’s put it back to work, folks.
moss
March 25, 2009 at 6:09 am