Former Morgan Stanley adviser sentenced to three years' probation for data theft

Former Morgan Stanley adviser sentenced to three years' probation for data theft
Galen Marsh, who allegedly called the stolen data “the world's best cold-calling list,” had some of the data stolen from him and posted on the Internet.
DEC 23, 2015
A fired Morgan Stanley financial adviser who downloaded client information to a home server to give his job search a boost was sentenced to three years' probation for accessing the bank's computer network without permission. Galen Marsh, who prosecutors say called the stolen data “the world's best cold-calling list,” had some of the data stolen from him and posted on the Internet. Mr. Marsh took the information to advance his career and had no intention of selling it, his lawyer Robert Gottlieb told U.S. District Judge Kevin Duffy at a hearing Tuesday. The lawyer begged the judge not to send his client to prison, saying Mr. Marsh has rediscovered his faith, is volunteering at a soup kitchen and working as a consultant to a startup software company. Appearing to hold back tears, Mr. Marsh, who faced as long as five years in prison, apologized for his actions as his father, mother and wife watched from the front row of the Manhattan courtroom. His wife is due to give birth to their daughter in six days. "I know what I did was wrong and I'll feel ashamed for it for the rest of my life," Mr. Marsh said. "I hope and pray I can turn this into a positive." Mr. Duffy agreed to impose probation but warned Marsh “to expect the roof to fall in” if he violates any of the terms. “I will hit you with everything possible,” Mr. Duffy said. “I'll make sure you spend your time in one of the worst places I can find, either Florence or Leavenworth. God forbid you should screw up once.” GUILTY PLEA Mr. Marsh pleaded guilty in September to transferring confidential data on about 730,000 customer accounts to a private server in his home in Hoboken, N.J., from 2011 to 2014. Morgan Stanley has said that account data for about 900 clients was found on an external website. Mr. Marsh worked in the bank's private wealth-management division. The government said there was no evidence backing his claim that he took the data to analyze client information from home so he could do a better job. Mr. Marsh has said Morgan Stanley told him Russian hackers were “suspected” of taking the information. In seeking leniency, Mr. Marsh said he cooperated promptly with the bank and the government's investigation of the breach. While prosecutors have determined Mr. Marsh's private server was accessed by hackers, the harm to the bank was foreseeable because he took the data in the first place and stored it at home, which was vulnerable to intrusion, Assistant U.S. Attorney Christine Magdo said in court papers. Confronted by superiors, Mr. Marsh admitted “the data he had taken was the world's best cold-calling list,” Ms. Magdo said, “and that he had been exploring job opportunities outside the bank.” The case is U.S. v. Marsh, 15-cr-00641, U.S. District Court, Southern District of New York (Manhattan).

Latest News

Texas man says SEC and fund could make him pay twice
Texas man says SEC and fund could make him pay twice

A $141M judgment and a federal asset freeze collide over one shrinking pool

Osaic executives Kristy Britt and Greg Cornick to leave
Osaic executives Kristy Britt and Greg Cornick to leave

The firm's CFO and EVP of Wealth Management Solutions are the latest executives to exit the broker-dealer.

Estate planning becomes a client retention issue for financial advisors, survey finds
Estate planning becomes a client retention issue for financial advisors, survey finds

Clients are saying they would consider switching advisors if another professional offered estate planning services, according to a new Trust & Will survey.

Candidly adds AI agents for Trump Accounts, workplace benefits
Candidly adds AI agents for Trump Accounts, workplace benefits

CEO Laurel Taylor says the fintech's composable AI stack helps workers optimize dollars across Trump Accounts, 529s, 401(k)s, and other employee benefits.

BMO adds three advisors in Dallas amid Y'all Street wealth boom
BMO adds three advisors in Dallas amid Y'all Street wealth boom

The bank has swiped three private banking veterans from BNY as the city climbs the ranks of America's fastest-growing wealth hubs.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.