01 Mar 2009, David Benyon, Operational Risk & Regulation
NEW YORK - A former vice-president at Wall Street firm Morgan Stanley has been arrested and charged with embezzling $2.5 million from the bank - one of only two survivors of Wall Street's five former investment banks during the crisis. Prosecutors allege Richard Garaventa was authorised to request or approve cheques from an in-house account to cover corporate expenses. They say he misappropriated over $2.5 million and spent it on luxury cars, jewellery, foreign holidays and the renovation of his New Jersey home. Garaventa pleaded his innocence to charges including grand larceny in a Manhattan court. If convicted, he faces up to 25 years behind bars.