Former employees of Morgan Stanley and Janney Montgomery Scott LLC were among eight individuals indicted yesterday on charges involving kickbacks and fraud at several Wall Street brokerage firms.
In one indictment, Darin DeMizio, a former stock-loan supervisor at Morgan Stanley of New York and Robert Johnson, a purported stock-loan finder at Tyde Inc. of New York were charged with participating in a scheme to commit securities fraud and wire fraud at Morgan Stanley and JPMorgan Chase & Co. of New York.
In another indictment, Joseph Lando, a former manager of the stock-loan desk at Janney Montgomery of Philadelphia, was charged with conspiracy to commit securities and wire fraud.
Some of the schemes in which Mr. Lando was involved included receiving cash kickbacks in exchange for giving business from Janney Montgomery to Amsterdam, Netherlands-based Van der Moolen Holding NV. He is also alleged to have paid kickbacks in the form of phony finder fees to relatives of traders at A.G. Edwards & Sons Inc. of St. Louis.
Another indictment charges that Andre Caccioppili, another former manager of the stock desk at Janney Montgomery, stole approximately $350,000 by causing the firm to pay phony finder fees to his sister, Donna Macli, and her husband, Thomas Macli.
The other individuals charged were Ken Suarez, a stock-lending employee at Schonfeld Securities LLC of Jericho, N.Y., and Gilbert Beital, a purported stock-loan finder who controlled a company known as GilCar LLC of Miami, according to Dow Jones Newswires.
The securities fraud charges carry maximum sentences of 25 years.
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