Ira S. Chilowitz, former employee of the brokerage firm Morgan Stanley & Co has pleaded guilty to four counts relating to the theft of information regarding hedge funds, conspiracy, transportation of stolen property, theft of trade secrets, and unauthorized computer access. He faces a total maximum sentence of 26 years' imprisonment and a maximum fine of $850,000.
Chilowitz was charged with conspiracy and unauthorized computer access, according to a criminal complaint unsealed in July of last year.
Federal prosecutors charged Ira Chilowitz with stealing the confidential pricing information from Morgan Stanley’s hedge fund prime brokerage group and passing it on to a “co-conspirator’’ at a midtown company that provides advisory services to hedge funds.
From about December 2005 until about February 2006, Chilowitz conspired with another individual, who was a former Morgan Stanley client service representative, to misappropriate the Client Rate List and to transmit it, via e-mail to his partner. Morgan Stanley provides financial and administrative services to numerous hedge funds and the data in the Client Rate List is not generally known to the public and is valuable to competitors of Morgan.
Chilowitz admitted in court during his guilty plea that he took the confidential and proprietary information from Morgan Stanley because it would potentially assist him in generating business for a consulting firm they had planned to launch.
No comments:
Post a Comment