Morgan Stanley accused of hiding e-mail

Dec. 20, 2006 at 12:24 PM
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NEW YORK, Dec. 20 (UPI) -- Morgan Stanley has been accused of hiding millions of e-mail messages, claiming the communications had been lost in the 2001 terrorist attack.

Securities regulators charged that the giant retail brokerage firm destroyed nearly 8 million electronic messages from September 2001 through March 2005.

Morgan Stanley was said to have made the Sept. 11 excuse to regulators and plaintiffs seeking to recover money lost in investment disputes.

The National Association of Securities Dealers said Morgan Stanley was able to rebuild its e-mail system and restore 11 of its 12 computer servers within days of the attack.

James S. Shorris, head of enforcement at NASD, said the actions "undermined the integrity of the regulatory and arbitration processes."

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