Not only did Morgan Stanley charge clients for storage fees for storing imaginary (MS never acquired or stored the silver it's clients paid for AND were charged annual storage fees for) silver in its vaults until it settled a $4.4 million lawsuit over the matter in 2007, but apparently they charge clients $1.845 million annually for research and investment advice they never provide. Apparently this is a small enough crime for the SEC to take action.
In other news, The Doc is sending JP Morgan a bill this morning for 850 billion ad impressions delivered to SilverDoctors readers over the past week.
CHICAGO (MarketWatch) -- The Securities and Exchange Commission on Tuesday charged Morgan Stanley Investment Management with violations of securities laws for its scheme that charged a fund and its investors for advisory services they never got. An investigation uncovered that Morgan Stanley, as the primary investment adviser to The Malaysia Fund told investors and the fund's board of directors that it was using a sub-adviser to give advice and do research. However, the sub-adviser did not provide the promised services even as the fund annually renewed the contract at an eventual cost of $1.845 million to investors.