The New York-based company also failed to enforce trading limits it assigned to the account and adequately respond to regulators’ requests for documents, the CFTC said.
The accounts were used by Benjamin Wilson, the owner of SureInvestment, to continue a $35 million Ponzi scheme based in the U.K., according to the statement. Wilson was sentenced to seven years in prison this year after pleading guilty to charges brought by that country’s Financial Conduct Authority, the CFTC said.
Morgan Stanley ignored 'warning signs' even as the account should have received special scrutiny because two SureInvestment entities were based in the British Virgin Islands.
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