(21 January 2010 – USA) The former vice president of operations for Morgan Stanley’s institutional securities business has been sentenced after stealing more than US$2.5 million (A$2.7 million).Richard Garaventa, who stole the funds from the bank over seven years, pleaded guilty to grand larceny in the first degree in July last year.
New York State Supreme Court Justice, Gregory Carro, sentenced Mr Garaventa to two to six years in prison for the theft.
Mr Garaventa created 50 separate cheques, each issued from an in-house Morgan Stanley account, as he was authorised to request cheques for various payments.
After creating the cheques, he allegedly deposited them into an account of an entity Mr Garaventa controlled; then proceeded to use the funds for personal items including US$30,000 in jewellery purchases.
Morgan Stanley fired Mr Garaventa in January 2009.
Garaventa apologised to Morgan Stanley and to his family at the court hearing, the district attorney’s spokeswoman said.
Prosecutors obtained all the restitution they believed possible, including the sale of the defendant’s house and two cars, and the surrender of his bank accounts, the spokeswomen added.