Morgan Stanley Allegedly Made Illegal Financial Sales Calls to Individuals from CareerBuilder.com

Regulators in Massachusetts have charged Morgan Stanley and three of its employees with illegally cold calling people that had posted their resumes on CareerBuilder.com.

According to the complaint by the stae, Arlen Fox, a Morgan Stanley broker in Boston, regularly downloaded thousands of resumes off the Web site. He and Morgan Stanley allegedly did not check to see whether the names were on “do-not-call” lists, and violated federal and state lists as a result. This alleged scam, violates Morgan Stanley’s legal agreement with CareerBuilder.com, as well as the privacy of the latter’s customers.

The resumes had valuable data, such as cell phone numbers and salary figures that Morgan Stanley should never have accessed through the site for prospecting purposes.

Assistant branch manager David Swartz, was allegedly aware of Fox’s “business practice.” Swartz and Michael Rhoads, a branch sales manager, were also charged by the state. Another Morgan Stanley employee, also at the High Street Boston office where the other three are employed, allegedly made statements about the firm’s telephone record system that was inconsistent and/or untruthful.

Secretary of the Commonwealth of Massachusetts William Galvin called the illegal activity “dishonest and ethical.” A Morgan Stanley spokesperson called the case an isolated one.

Massachusetts wants a cease and desist order against Morgan Stanley, as well as an undetermined censure and fine.

If you are an investor that has lost money because of a scam or any other illegal activities by members of the securities industry, there are legal remedies to recover your money.

Shepherd Smith and Edwards is a securities litigation law firm dedicated to helping victims recover their losses. Contact us online for your free consultation. You can also call us at (800) 259-9010 or at (713) 227-2400.

Related Web Resources:

Morgan charged over prospecting methods, Investment News, September 14, 2007
Galvin: Morgan Stanley workers raid resumes for $$, Bostonherald.com, September 13, 2007
Related Web Resources:

Careerbuilder.com

Morgan Stanley