Why Neil Phillips Avoided Prison: Morgan Stanley Was Victim (1)

The judge who sentenced Glen Point Capital co-founder Neil Phillips to probation instead of prison for manipulating an exchange rate said leniency was warranted in part because the victim in the case was Morgan Stanley.

Manhattan federal prosecutors had asked for a two-year prison sentence for Phillips, who was convicted in October of directing $700 million in trades aimed at manipulating the value of the South African rand to 12.50 against the US dollar. That was the barrier rate at which a $20 million option he bought from Morgan Stanley would pay out.

But US District Judge Lewis Liman ...