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Embarrassing Morgan Stanley In Front Of The CFTC, Manhattan D.A. No Reason To Fire A Person

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Sayeth a divided FINRA arbitration panel:

“Mr. Gupta received no fair, reasoned, fully-informed individualized consideration of his circumstances,” the two-person majority noted in a description of the award. “The decision to terminate him ‘for Cause’ was so flawed that it does not constitute valid action.”

So pay him $8.01 million of the $14 million he wanted, and take a deep breath before firing anyone else who refuses an order to have a chat, friendly or otherwise.

In February 2009, Mr. Gupta participated in a large trade that “became the subject of an investigation” by the U.S. Commodity Futures Trading Commission and the District Attorney of New York County, according to the arbitration papers. The investigators in the case requested an interview with Mr. Gupta, who declined on the advice of his lawyer. Morgan Stanley however asked that Mr. Gupta cooperate and terminated him in Sept. 2009 when he didn’t….

The papers noted that Mr. Gupta’s lawyers in the criminal inquiry “ultimately persuaded the District Attorney and the CFTC to close their investigations without bringing any charges against Mr. Gupta. Representatives of the CFTC and the Manhattan DA declined immediate comment.

Former Morgan Stanley Commodities Trader Wins $8 Million Arbitration Award [WSJ MoneyBeat blog]


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