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Banker on leave after meeting with alleged 'Millionaire Madam'

Morgan Stanley says it has placed one of its New York brokers on leave while an internal investigation is conducted into the employee's possible connection to an alleged Manhattan madam. CNBC's Scott Cohn reports.

Apparently "it's not what you know but who you know" doesn't always turn out well.

A Morgan Stanley broker who met with the alleged "Millionaire Madam" before her arrest on prostitution charges has been put on administrative leave, according to new reports Friday.

David S. Walker, who works for Morgan Stanley's money management arm, hasn't been charged with any crime, and the investment giant said it has seen no evidence he was involved in criminal activity. But the 47-year-old broker will be on paid leave during the criminal investigation surrounding Anna Gristina, a Morgan Stanley spokesman told Reuters.

At Gristina's arraignment, prosecutors said she was meeting with Walker to expand her prostitution business online.

Gristina has pled not guilty on charges of promoting prostitution; her lawyer has said she was starting an online dating service. Prosecutors say she was running a high-end prostitution ring, operating out of a tony Manhattan address and bragging that she had friends in high places who would tip her off if a bust was in the works. 

Walker told local news site DNAinfo.com that Gristina had "other people" with whom she worked at the bank and said he wasn't involved in any business dealings with her.

It's been a rough week for Morgan Stanley bankers. According to Bloomberg, top bond executive William Bryan Jennings pled not guilty Friday in Connecticut on assault and hate crime charges for allegedly stabbing a cabdriver in December after a dispute over a fare.