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Morgan Stanley Offers $15M for AWOL E-mail

Feb 22, 20062 mins
CSO and CISOData and Information Security

Investment bank Morgan Stanley is offering $15 million to the Securities and Exchange Commission (SEC) in hopes of ending an SEC investigation into the firm’s reputed failure to produce e-mail evidence in court, reports via The Register.

Within its annual report filed in early February, Morgan Stanley stated that it has come to “an agreement in principle” with the SEC’s enforcement division, reports.  The full SEC has not yet seen the settlement proposal, according to 

The report plainly states, “No assurance can be given that it will be accepted.”

The report also says that $15 million would be the largest amount ever paid for failure to retain e-mail, reports.

The SEC investigation is in reference to the sale of Coleman to Sunbeam in 1998, according to

Sunbeam stock made up a percentage of the selling price, and shortly after the deal was closed that stock dropped significantly.  Morgan Stanley advised Coleman owner Ronald Perelman on the sale, and after the stock plummeted, Perelman accused the investment bank of having a hand in the scandal that cloaked Sunbeam’s financial difficulties, reports.

When Morgan Stanley didn’t produce a number of documents and e-mail messages requested by Perelman’s attorney, the presiding judge become frustrated with the investment bank and shifted the burden of proof onto Morgan Stanley so that it had to prove its innocence, according to

Perelman was awarded some $1.45 billion in damages, according to

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Managing Editor

Al Sacco was a journalist, blogger and editor who covers the fast-paced mobile beat for and IDG Enterprise, with a focus on wearable tech, smartphones and tablet PCs. Al managed writers and contributors, covered news, and shared insightful expert analysis of key industry happenings. He also wrote a wide variety of tutorials and how-tos to help readers get the most out of their gadgets, and regularly offered up recommendations on software for a number of mobile platforms. Al resides in Boston and is a passionate reader, traveler, beer lover, film buff and Red Sox fan.

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