Investment banker Morgan Stanley & Co. has agreed to pay more than $200,000 to the Indiana Securities Division to settle claims it charged excessive fees to the Indiana State Teachers Association Insurance Trust.
The Indiana secretary of state’s office says Morgan Stanley agreed to a consent decree in which it will pay a $100,000 fine and $110,000 in investigative costs.
This resolution follows ISTA’s settlement with Morgan Stanley resolving issues of excessive compensation by the banker. Claims by ISTA against other parties are pending.
The 50,000-member ISTA was taken over by the National Education Association in 2009 after the Indiana Department of Insurance said the trust had a net worth of negative $67 million. ISTA subsequently sued former officials and financial advisers, saying they had mismanaged the trust.
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