Morgan Stanley fires broker for stealing thousands of clients' data

Morgan Stanley on Monday said it had fired a broker in its wealth management group who had stolen client data and posted some of it online. The theft affected up to 10% — 350,000 — of the firm's 3.5 million wirehouse clients, said company spokesman Jim Wiggins. Not all of the clients affected had their information posted online. “While there is no evidence of any economic loss to any client, it has been determined that certain account information of approximately 900 clients, including account names and numbers, was briefly posted on the Internet,” the company said in a statement. “Morgan Stanley detected this exposure and the information was promptly removed.” The stolen data did not include account passwords or Social Security numbers, the company said in a press release. The employee who was fired was a 30-year old broker, Galen Marsh, who worked out of a branch office in New York City, according to a person familiar with the matter. He was terminated late last week after the firm uncovered client information that was allegedly posted to a website in exchange for money, the source confirmed. Information on Mr. Marsh's termination or any allegations have not yet appeared on his public BrokerCheck record with the Financial Industry Regulatory Authority Inc. Mr. Marsh began at Morgan Stanley in 2008 as a sales assistant, joined the financial adviser training program in 2010 and has been an adviser since March 2014. Morgan Stanley and its financial advisers are contacting the clients affected and has also advised law enforcement and regulators of the incident. “Morgan Stanley takes extremely seriously its responsibilities to safeguard client data, and is working with the appropriate authorities to conduct and conclude a thorough investigation of the matter,” the company statement said. At the end of September, Morgan Stanley's wealth management group had close to $2 trillion in client assets. The company had close to 16,500 registered representatives and financial advisers at the end of 2013.