Enter multiple symbols separated by commas

Former Morgan Stanley Worker Arrested on Data Theft Charges


A former Morgan Stanley employee was arrested on charges related to the theft of proprietary information about the brokerage firm's hedge fund clients.

Ronald Peteka, 41, and co-conspirators accessed Morgan Stanley's computers and obtained confidential information on the firm's prime brokerage business, including its client rate lists, the U.S. Attorney in Manhattan alleged in a complaint.

Peteka's lawyer declined to comment. A U.S. magistrate judge set his bail at $35,000 at a hearing in Manhattan federal court on Wednesday.

Peteka is the second person to be arrested in the case, which was uncovered last year based on information provided by Morgan Stanley, according to the brokerage firm.

Ira Chilowitz, a former Morgan Stanley computer consultant, pleaded guilty in February this year to stealing names of the firm's hedge fund clients and confidential information about the fees they were charged.

"Morgan Stanley continues to place the highest priority on maintaining the integrity of confidential information," the brokerage firm said in a statement.

Peteka e-mailed documents belonging to Morgan Stanley from his e-mail account at an unnamed New York company to a personal account on at least five occasions between December 2005 and February 2006, the prosecutors alleged. The New York company negotiates on behalf of hedge funds the rates that they pay for prime brokerage services.

Peteka was thinking of starting his own consulting firm to offer services to hedge and pension funds similar to those provided by companies such as Morgan Stanley, according to the complaint.

Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • Why women cheat?

    Is cheating bad? Why do women cheat? The founder and CEO of affair website Ashley Madison tells all, including why he has his eye on China.

  • Judge's gavel

    The Financial Industry Regulatory Authority disciplined several financial services firms and individuals in May 2015.

  • Fine wines & finance

    Why you should try something a little different on date night. Bring the romance and champagne, and a calculator too. Every once in a while have a date to talk money and finance, and keep an important part of your relationship on track. Reporter Sharon Epperson talks to a couple who does just that.

U.S. Video

  • Cramer: Here's a sign the market could rally

    Wall Street's been soaking in red, but "Mad Money" host Jim Cramer has one signal to watch for that could point to another run.

  • Burger war maneuvers

    Cramer looks at the number of company's selling burgers and tries to determine the quality names, as well as those to avoid.

  • Cramer: What's driving defense?

    Cramer says that even though President Obama has made it clear the US can no longer be the world's policeman, the country can become the world's arms dealer. Profiting from defense spending.