The Commodity Futures Trading Commission on Tuesday sanctioned Benjamin Hutchen, a former managing director of Morgan Stanley & Co. LLC, whose reporting of fictitious sales cost the firm a $5 million fine earlier this year.
Without admitting or denying the CFTC's findings and conclusions, Hutchen agreed to be fined $300,000, suspended from associated person status for four months, and ordered to cease and desist from violating Commodity Exchange Act Section 4c(a) and Regulation 1.38(a).
Morgan Stanley, a futures commission merchant, on June 5, 2012 settled a related CFTC action over the same violations and for violating Regulation 166.3 by failing to diligently supervise Hutchen's trading on the Chicago Mercantile Exchange and the Chicago Board of Trade.
Morgan Stanley let Hutchen "resign in connection with an internal review [over] violations of company policies and procedures and applicable exchange rules," the firm said in a regulatory filing.
Hutchen was then hired by MF
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