Wednesday, February 18, 2009
Former Morgan Stanley Executive Charged In $2.5 Million Embezzlement Case
Richard Garaventa Jr., 36, of Manalapan, New Jersey and a former vice president of Morgan Stanley, pleaded not guilty to charges he embezzled some $2.5 million from the investment bank. Garaventa allegedly stole the money by setting up a phony company, New York Transfer Corp., to which he sent at least 50 unauthorized checks of as much as $75,000. He has been charged with 43 criminal counts, including grand larceny, possession of stolen property and falsifying business records. According to prosecutors, Garaventa spent the money to maintain a lavish lifestyle on such things as luxury vehicles, jewelry, expensive vacations and other personal items. The scheme took place over a period of 7 years, according to reports. He faces up to 25 years in prison if convicted.