While working as an investment broker for Morgan Stanley in the early 2000s, author Dana de Windt discovered some shocking improprieties. “Morgan Stanley inadvertently established a Ponzi scheme, with the deliberate and intentional selling of Kemper Lumbermen’s Surplus Notes,” he says. “That’s the reason that they and their regulators have fought like tigers to keep this very serious infraction from getting into the public’s knowledge.” In 2007, Morgan Stanley and one of its senior traders agreed to pay $6.1 million in fines and restitution to settle allegations that the investment bank overcharged brokerage customers — one of whom was Dana’s then 87-year-old father — on 2,800 purchases of $59 million of bonds. But no criminal charges were ever pursued. Dana is the author of “Checkmate: The Morgan Stanley Whistle Blower.” Contact Dana de Wendt at (772) 773-6879; ddewindt@rtirguests.com
