Street Patrol
Former Wall Street Trader Charged in Kickback Case
- 3/10/2010 8:29:28 AM
Salvatore Zangari, a former “stock-loan” trader at Morgan Stanley (NYSE: MS) and Banc of America (NYSE: BAC), has been accused of violating securities rules by accepting secret kickbacks from a Brooklyn stock loan finder in exchange for sending business its way. During an 11-year span ending in 2009, the U.S. Securities and Exchange Commission claims, Zangari pocketed “well over $100,000 in cash kickbacks” – partially used for a down payment on a New York apartment – that shortchanged the Wall Street firms that employed him. “Zangari’s misconduct defrauded and otherwise harmed Morgan Stanley and Banc of America,” the SEC explained, “because he purposely arranged stock loan transactions on their behalf at borrowing and lending rates that were designed to generate finder-fee payments rather than to maximize the firms’ profits.” The SEC is seeking disgorgement, plus interest and penalties, from the former trader.
