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Morgan Stanley Executive Suggested Cash Could be Funneled Through Private Firm to Pay Connecticut State Senator Wife's Girlfriend

May 23, 2019

Stan Twardy was quoted in an article, "Morgan Stanley Executive Suggested Cash Could be Funneled Through Private Firm to Pay Connecticut State Senator Wife's Girlfriend," published by CNBC. As reported in the article, Connecticut Senator Alex Bergstein's pending divorce with her husband, Morgan Stanley investment banker Seth Bergstein, has both exposed a romantic relationship between the senator and her former campaign manager, and Seth Bergstein's suggestion of having money funneled through a private company to pay for the legislative salary of the other woman, who is now dating his estranged wife. However, that money was never paid to the senator.

Twardy told CNBC if the money had been paid to Alex Bergstein, and if some of it had been funneled through a private company or shell company to pay for the salaries of aides to his wife, it would have been both puzzling and a potentially legally problematic move. "I don't know that it is illegal, but I think it would raise concerns with the state election [enforcement] folks," said Twardy, who previously served as a U.S. Attorney for Connecticut. "A lot of questions and concerns ... it certainly looks bad," said Twardy. He also noted the arrangement could create tax compliance problems for a company that paid the aides. "You're actually going to have a business paying for our public servants?" he asked. "What's the difference between that and giving them a kickback to pay for legislation?"



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