Convicted Brokers Can Keep Morgan Stanley Bonuses
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Morgan Stanley, owner of the world’s largest brokerage, lost an arbitration ruling that will allow two brokers convicted of securities fraud to each keep $4.45 million in signing bonuses.
A Financial Industry Regulatory Authority arbitration board denied the New York-based firm’s request to have Eric Butler and Julian Tzolov repay the bonuses paid when they were hired in 2007, according the ruling. The board also denied Butler and Tzolov’s counterclaims seeking damages, said the ruling, dated July 22.