In the Matter of Morgan Stanley Smith Barney LLC
Admin. Proc. File No. 3-17809
On January 24, 2017, the Commission instituted and simultaneously settled cease-and-desist proceedings against Morgan Stanley Smith Barney LLC (“Respondent”). The Commission found that, from August 2010 to July 2011, the Respondent violated federal securities laws by making false and misleading statements about a foreign exchange trading program it sold to investors. The Commission ordered the Respondent to pay a total of $2,963,735.61 in disgorgement, prejudgment interest, and a civil money penalty. The Commission also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, so the penalty, along with the disgorgement and prejudgment interest, collected can be distributed to those harmed by the Respondent’s misconduct. See the Commission’s order: Release No. 33-10290.
The Respondent has paid, as ordered, a total of $2,963,735.61 into the Fair Fund for distribution to harmed investors.
On September 14, 2017, the Commission issued an order appointing Miller Kaplan Arase LLP as the Tax Administrator to fulfill the tax obligations of the Fair Fund.
For more information, please contact the Commission:
Office of Distributions