More indictments in U.S. stock-loan case

WASHINGTON, May 22 (Reuters) - Five additional people, including former employees of Morgan Stanley Co (MS.N: Quote, Profile, Research, Stock Buzz) and Janney Montgomery Scott LLC, were indicted on Thursday as part of a large federal investigation into the stock-loan industry.

The latest indictments on securities fraud and other charges arise out of an ongoing probe into bribery and kickbacks in the industry, where people called "stock loan finders" seek stock to cover short sales of shares.

Investigators have found some stock-loan traders steered millions of dollars of fraudulent finder fees to conspirators, often in exchange for no services, in exchange for outright bribes or payments to relatives.

So far, 18 people have pleaded guilty in connection with the schemes, said a statement from the U.S. Attorney's Office in Brooklyn, New York.

Those indicted Thursday were named as Darin DeMizio, a former Morgan Stanley supervisor; Robert Johnson of Tyde Inc; and Joseph Lando, a former manager of the stock-loan desk at Janney.

Andrew Caccioppoli, another former manager at Janney's stock-loan desk, had been indicted previously but was re-indicted along with his sister, Donna Macli and her husband Thomas Macli.

The indictment alleges that the Maclis do not work in the securities industry but Caccioppoli caused Janney to pay $350,000 in phony finder fees to the couple.

DeMizio is accused of routinely directing Morgan Stanley stock-loan business to two stock finders, including Johnson, in exchange for kickbacks and bribes paid to two of DeMizio's family members.

Johnson is alleged to have paid kickbacks to a trader at JPMorgan Chase (JPM.N: Quote, Profile, Research, Stock Buzz) on stock-loan trades.