Morgan Stanley sued to recover more than $3.6m it paid to defend a former broker who was imprisoned for his role in a kickback scheme.
Bloomberg News reports that the firm said in its complaint against ex-broker Darin DeMizio that he should repay legal costs because 'he intentionally defrauded Morgan Stanley and concealed his fraud' while working at the brokerage.
DeMizio was convicted in 2009 of scheming to pay $1.7m in kickbacks to his father and brother for virtually no work, according to the complaint filed in Manhattan federal court. DeMizio, who joined Morgan Stanley in 1991, was sentenced to 38 months in prison and ordered to pay the firm $1.2m in restitution.
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