Lax MS security has some blame, too

Former Morgan Stanley adviser Galen Marsh — whowas fired by the investment bank, accused of brazenly stealing an encyclopedia full of client data and then selling it online— still professes his innocence, but pros say the bank should not get off so easy.

Dumbfounded cybersecurity experts and financial execs contend that Morgan will need a good defense. Early “evidence” that Marsh stole and posted 900 pieces of client data for sale late last month for 78,000 electronic speed coins on controversial Web site Pastebin is laughable, they say.

Morgan employees, however, are under orders not to open up. “Yes, we heard all about it,” one current MS financial adviser told The Post. “Iamsorry, man, wegot some internal memos specifically asking us not to comment— they are going to be releasing more information later on about the case.”

But one former Morgan broker was not so shy. “I can’t imagine how this could have happened,” this exemployee said. “It’s crazy— I don’t knowif this is even true that he stole and posted client data. When I worked at Morgan, you couldn’t even see the guy in the desk next to me.”

Marsh was unavailable for comment, his attorney Robert Gottlieb said.

The data theft may be the largest of its kind in wealth management history. It has certainly rattled nerves.

“This is Morgan Stanley, this is not a small brokerage firm,” said Todd Cipperman, principal of Cipperman Compliance Services. “Still, this rogue employee, if you will, was able to get access to this data. That should send chills downthe spine of those who lead firms that don’t have the kind of resources as Morgan Stanley.”