(Bloomberg) -- A U.S. probe into how Morgan Stanley client information ended up for sale on the Internet is examining whether a financial advisor was targeted by hackers after he took data from the bank, two people briefed on the inquiry said.
While Galen Marsh was dismissed for obtaining information on as many as 350,000 wealth-management clients, his lawyer said last month that the 30-year-old financial advisor didnt seek to sell or use it for personal gain. Federal investigators are trying to determine whether his computer was breached after he removed data from the firm, the people said. Theres no evidence Morgan Stanleys own computers were hacked, said one of the people, whos familiar with the companys review.
Right from the beginning, we have stated very clearly, that Mr. Marsh had nothing to do with any information being posted on the Internet, Marshs lawyer, Robert C. Gottlieb of Gottlieb & Gordon LLP, said Wednesday in a phone interview.
Morgan Stanley, owner of the worlds largest brokerage, has sought to contain the fallout since learning in December that someone had posted information about 900 customers on the website Pastebin and asked potential buyers to pay for more with a virtual currency. The firm said last month that it had the data promptly removed from public view and that it notified law enforcement.
Some client data has appeared online again since Marsh was dismissed, prompting Morgan Stanley to have it taken down, said the people, who asked not to be identified because the probe isnt public. No customers have reported fraud from the theft of the data, which included names and account numbers but not Social Security numbers, passwords or bank information, one of the people said. Morgan Stanley has begun changing account numbers as a precaution, the person said.
Jim Margolin, a spokesman for Manhattan U.S. Attorney Preet Bharara, declined to comment. The Wall Street Journal reported earlier Wednesday that the U.S. is examining whether Marshs computer was hacked.
Marsh joined Morgan Stanley in 2008 as a sales assistant and was promoted to financial advisor last year. He previously worked at Bear Stearns, according to FINRA records.
He acknowledged that he shouldnt have obtained the account information and has been cooperating with Morgan Stanley to protect the firm and clients, Gottlieb said last month.
- Morgan Stanley Breach: Advisor Downloaded Client Data From Across the Country
- Unsettling Truths, Unanswered Questions in Morgan Stanley Breach
- Fired Morgan Stanley Advisor Didnt Sell Data, Lawyer Says
- After Morgan Stanley Data Breach, How to Talk to Clients About Cybersecurity
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access