Securities Arbitration: The Discovery Pit - Part I
May 30th, 2006 by 
Theodore Eppenstein
The $15 million SEC fine against Morgan Stanley & Co. for repeated and flagrant e-mail production failures in hundreds of securities arbitration cases points to a larger problem that mere penalties by the regulators cannot remedy. How do we know that sanctions, however drastic they may seem, will not serve to prevent future violations in securities arbitration: because experience has shown that the industry goes back to business as usual until the next time it is caught. A glaring case in point is Refco, the giant trading firm that spectacularly collapsed in a blaze of fraud and corruption at the end of 2005 after over a decade of slaps on the wrist by the regulators. Read the rest of this entry »
Posted in Securities Arbitration & Litigation
