Former FrontPoint Partners LLC fund manager Joseph F. “Chip” Skowron, who began serving a five- year sentence for insider trading in January, must pay Morgan Stanley (MS) $10.2 million, a judge ruled.
The amount consists of $3.8 million in legal fees the bank spent on Skowron’s case plus 20 percent of the salary he was paid from 2007 to 2010, U.S. District Judge Denise Cote in Manhattan ruled yesterday. Cote denied the New York-based bank’s request for repayment of the $33 million it paid to settle claims by the U.S. Securities and Exchange Commission.
Skowron, who began serving his prison sentence in January at the Federal Correctional Institution Schuylkill in Pennsylvania, had argued that Morgan Stanley shouldn’t collect any funds under the Mandatory Victims Restitution Act.
“Morgan Stanley is a victim because it was directly and proximately harmed by Skowron’s scheme in a variety of ways,” Judge Cote said in the ruling…
More? Check out http://www.bloomberg.com/news/2012-03-21/ex-frontpoint-manager-must-pay-morgan-stanley-10-2-million-1-.html
No comments:
Post a Comment