The Securities and Exchange Commission charged an analyst with Morgan Stanley Group Inc. Monday with profiting from inside information in what an SEC official called the second biggest insider trading case the agency has ever handled.
Investigators are alleging that the trading on inside information involved stock in about 25 different companies, including E.F. Hutton, Stop & Shop Cos. and Utah Power & Light Co.The SEC filed a civil complaint against Stephen Wang Jr., an analyst in Morgan Stanley's mergers and acquisitions department.
The complaint asked the federal court in New York to order the return of $19 million in alleged trading profits plus triple that amount in damages.
Gary Lynch, the SEC's enforcement chief, said the case is the second biggest insider trading case ever handled by the SEC, dwarfed only by a case brought against Ivan Boesky, who paid the enforcement agency a record $100 million in disgorged profits and penalties in November 1986.
Also named in the complaint was Fred C. Lee, a Hong Kong businessman who allegedly traded on the information supplied by Wang.
Wang had been with Morgan Stanley for two years and had been in the mergers and acquisition division for one year, Lynch said in an interview.