Morgan Stanley will pay more than $7.2 million to settle regulatory charges that two brokers induced dozens of Eastman Kodak and Xerox Corp. workers to retire early and open accounts that cost them much of their wealth.

One of the brokers, Michael Kazacos, was permanently barred from the industry. David Isabella was charged with misconduct; their manager, Ira Miller, was suspended from acting as a principal for a year and fined $50,000, the government said.