Ex-Morgan Stanley Trader Settles SEC Claims Over Hiding Risk
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A former Morgan Stanley trader agreed to pay $25,000 to settle U.S. Securities and Exchange Commission claims that she concealed proprietary trades that exceeded the firm’s risk limits.
Jennifer Kim and her supervisor, Larry Feinblum, used “fake” swap orders at least 32 times from October to December 2009 to hide their risk of losses, the SEC said in an order today. New York-based Morgan Stanley ultimately lost about $24.5 million from the unauthorized trades, according to the agency.