The Securities and Exchange Commission on Tuesday charged Morgan Stanley Investment Management with violations of securities laws for its scheme that charged a fund and its investors for advisory services they never got. An investigation uncovered that Morgan Stanley, as the primary investment adviser to The Malaysia Fund told investors and the fund’s board of directors that it was using a sub-adviser to give advice and do research. However, the sub-adviser did not provide the promised services even as the fund annually renewed the contract at an eventual cost of $1.845 million to investors.
via SEC charges Morgan Stanley with securities fraud – MarketWatch.
