Regulators Probing Possible IPO Kickbacks

May 7, 2001 ( - An investigation into the alleged misallocation of initial public share offerings (IPO), which has targeted investment banks and their institutional clients, may broaden to include individual recipients of new equity listings.

This coincides with the revelation that Morgan Stanley awarded Donald DiFrancesco, acting governor of New Jersey, higher than average allocations in more than 30 highly sought-after IPO offerings.

According to tax records, he sold shares within a day at between 20% and 400% profit.

– Camilla Klein