The SEC imposed a $100,000 civil penalty on former traderNicholas Bonacci over allegations that he misled customers about the value of residentialmortgage-backed securities that he sold.
Bonacci allegedly induced Morgan Stanley customers to pay morefor RMBS that he sold by misleading them on how much the company paid for the securitiesand the compensation it will receive for arranging the trades. He also allegedlymade misrepresentations that he was arranging an RMBS trade between customers whenhe was actually selling those securities out of the company's own inventory.
Bonacci agreed to pay the civil penalty to settle the charges.He was also suspended from associating with anyone in the industry for 12 months.
Morgan Stanley putBonacci on administrative leave in March 2014. He left the company in February.