6 accused of fraud at Wall Street brokerage firms

May 22, 2008 8:46:09 AM PDT
The U.S. attorney's office in Brooklyn says six people are accused of kickbacks and fraud at the stock-loan desks of Wall Street brokerage firms. Indictments unsealed Thursday allege securities fraud conspiracy and related charges against the defendants, including former stock loan supervisors at Morgan Stanley and Co., Inc. and Janney Montgomery Scott LLC.

The defendants are due in court Thursday afternoon.

The charges are part of an ongoing, industrywide investigation into allegations of bribery and kickbacks in the securities lending industry, also called the stock-loan industry.