A former broker for Morgan Stanley and Bank of America Corp. was sentenced to one year and a day in prison for receiving kickbacks in a stock-loan scheme.
Salvatore Zangari was sentenced Friday by U.S. District Judge John Gleeson in Brooklyn, N.Y. When he pleaded guilty April 15, Zangari admitted that he conspired in a plan that resulted in the payment of sham fees to a purported stock-loan finder. The scheme lasted from March 2004 to December 2005, prosecutors said. "Stupidity. I really can't sit here and justify what I did," Zangari told the judge when asked why he participated.
The guilty plea marked the 32nd conviction obtained as part of an investigation of the stock-loan industry, according to Robert Nardoza, a spokesman for the U.S. Attorney's office in Brooklyn.