A slap on the wrist for illegal millions?

Michael Gianaris

January 20, 2012

The Queens Chronicle investigates the alleged prixe-fixing scheme employed by Morgan Stanley and KeySpan that overcharged New Yorkers for electrictity while garnering Morgan Stanley and KeySpan $21.6 million. Senator Gianaris believes that the Department of Justice's recommended fine of $4.8 million is inadequate.

A price-fixing scheme allegedly concocted by Morgan Stanley and KeySpan, and involving Astoria Generating Co., may have overcharged New Yorkers for electricity while garnering Morgan Stanley and KeySpan millions, according to published reports and two area politicians outraged at the scheme: Councilman Peter Vallone Jr. (D-Astoria) and state Sen. Mike Gianaris (D-Astoria).

But Morgan Stanley, who allegedly pocketed $21.6 million as a result of the deal, may only receive a $4.8 million fine based on a Department of Justice recommendation, the politicians said. Vallone called the fine “chump change.”


Gianaris and Vallone would like any illegally-obtained money taken from New York ratepayers to be returned.

“What’s clear to me is that the settlement recommendations are inadequate,” Gianaris said. “These companies ... made millions and millions of dollars in inappropriate profits from this swindle.”

Read the full article here.