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Former Morgan Stanley Adviser Pleads Guilty to Data Hacking Charges

By Erwin J. Shustak, Esq. of Shustak Reynolds & Partners, P.C. posted on Friday, September 25, 2015.

Former Morgan Stanley financial adviser Galen Marsh plead guilty to accessing the firm’s computer network without permission, some of which information wound up on a public website.

Between 2011 and 2014, Galen Marsh accessed MS’ database and transferred confidential information on over 730,000 MS customers to a private server he maintained in his New Jersey home, according to prosecutors. Subsequently, information relating to about 900 MS customers wound up on an external website this past January. Marsh had been with Morgan Stanley since 2008 and worked at the firm’s Manhattan location.

According to Marsh’s attorney, Marsh did not post the information he purloined, nor share it with anyone or plan to sell it. Marsh did, however, acknowledge that he should not have obtained the account information. He was promptly fired by MS once the firm learned of the theft and transfer of the client data from its database.

Marsh, who plead guilty before U.S. District Court Judge Kevin Duffy in Manhattan, faces as long as five years of prison when he is sentenced December 7th. Following his guilty plea, Morgan Stanley released a statement that his guilty plea “makes clear that misuse of client account information will not be tolerated”.     

Shustak Reynolds & Partners, P.C.  focuses its practice on the securities industry and matters affecting broker-dealers and registered representatives.  The Firm has extensive experience in the area of broker expungements. For more information, contact Erwin J. Shustak, managing partner, at [email protected], or call 800.496.5900 for a free consultation.

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