Former Morgan Stanley Employee Arrested for Stealing Hedge Fund Client Info

April 4, 2007 ( - A former Morgan Stanley & Co. employee was arrested by federal prosecutors Wednesday for allegedly lifting information from the brokerage firm's computers about its hedge fund clients, Reuters reported.

The U.S. Attorney in Manhattan claims that Ronald Peteka, along with co-conspirators, accessed Morgan Stanley’s computers and retrieved confidential information about the brokerage firm’s hedge fund clients.

Peteka then e-mailed the stolen documents from his e-mail account at a New York company to his personal account on five occasions, the wire service reported.

Peteka’s arrest follows that of co-conspirator Ira Chilowitz, a former Morgan Stanley computer consultant who 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.