September 12, 2007 / 5:59 PM / 10 years ago

Mass regulator charges Morgan Stanley on calls

BOSTON, Sept 12 (Reuters) - Massachusetts’ top securities regulator charged on Wednesday that investment bank Morgan Stanley (MS.N) and two Boston-based employees broke ethics rules when they improperly used a jobs Web site to find new customers.

William Galvin, the state’s Secretary of the Commonwealth, said Arlen Jay Fox combed through more than 1,000 resumes posted on CareerBuilder.com between August 2005 and December 2006 after his boss, David Swartz, gave him a password to access the information. He then used the information to cold call potential customers.

    “The resumes were chock-full of valuable information, such as employment history (suggesting potential sources of 401(k) transfers), recent salary levels and vital contact information, such as cell phone telephone numbers that might not otherwise be published,” Galvin said in a statement.

    He said the two breached the terms of Morgan Stanley’s contract with CareerBuilder and violated national and state do-not-call lists, where people can ask not to be solicited by phone.

    Morgan Stanley called the matter an “isolated instance in one office involving a single financial advisor,” and said it is cooperating with Galvin’s investigation.

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