You may have heard the story of Gabriele T. Smith who ripped off numerous hip hop artists and business people using her position at Morgan Stanley and her own independent financial services company.  She was exposed due to her handling of an account for Kenneth McGriff of Murder Inc. after which a variety of legal actions ensued.

Now Morgan Stanley has settled a case with the State of New York to
pay over $1 million for failing to supervise Ms. Smith after having previously settled two private claims for a combined $2.2 million.