Colorado Securities Commissioner Fred Joseph announced today the entry of a Consent Order that finalizes the terms of settlement between the Colorado Division of Securities and Morgan Stanley & Co. Incorporated. Under the settlement agreement, Morgan Stanley agreed to buy back in excess of $127 million worth of auction rate securities from Colorado investors who found themselves unable to sell their securities after they had been frozen in the auction rate securities ("ARS") market.
The settlement concludes an investigation led by state securities regulators, including the Colorado Division of Securities, into allegations that Morgan Stanley, through its salespeople, advised certain clients that ARS were safe, liquid, and short-term investments when in fact ARS are bonds with long-term maturities, and their short-term liquidity was dependent upon the success of the auction process. Morgan Stanley failed to provide its sales or marketing staff with the training necessary to adequately explain these products or the mechanics of the auction process to the customers. Further, Morgan Stanley did not adequately train all of its brokers and financial advisers regarding the potential illiquidity of ARS, including the fact that Morgan Stanley may stop supporting the market. The ARS markets froze in February of 2008, triggering a flood of complaints from investors who could not withdraw money from their accounts. States received complaints from a wide range of investors who suffered significant financial damage because the money they were told was liquid was tied up in the frozen ARS market.
This settlement is the tenth that the Securities Commissioner has finalized. Previous settlements include Goldman Sachs, Deutsche Bank Securities, Citigroup Global Markets, Bank of America Securities, Credit Suisse Securities, JP Morgan Chase, Merrill Lynch, RBC Capital Markets, UBS Securities, and Wachovia Securities.
DORA is dedicated to preserving the integrity of the marketplace and is committed to promoting a fair and competitive business environment in Colorado. Consumer protection is our mission.
Tribute to Dijoun Quinn of Commerce City... There is now a $2500 reward posted by the Commerce City
A Shooting Claims the life of 18 year old Dijoun Quinn... COMMERCE CITY - The Commerce City Police Department is investigating a shooting that occurred in the 6500 block of Holly St. Officers responded to a report of shots being fired in the area. When they arrived they found a male lying on the ground. It appears that an 18 year old male was walking southbound on Holly St when he was shot multiple times. The male was transported to the hospital but did not survive his injuries. Commerce City police identified the 18-year-old as Dijoun Quinn, a recent graduate of Adams City High School who had enlisted in the Army. Quinn's Grandfather says his grandson didn't have any enemies and was not in a gang. There is no suspect information available at this time, and investigators are encouraging anyone with information to contact Detective Bryan VanderMeer at 303-289-3629 or the Commerce City Tip Line at 303-289-3626. The investigation is ongoing and more information will be released as it becomes available.
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