Former Morgan Stanley VP accused of embezzlement

NEW YORK: A former Morgan Stanley vice president has been arrested on charges of embezzling more than USD 2.5 million from the investment bank.

Richard Garaventa Jr pleaded not guilty yesterday at his arraignment in Manhattan's state Supreme Court on grand larceny and other counts.

He faces up to 25 years in prison if convicted. Prosecutor Jeremy Glickman said the 36-year-old defendant was authorised to request or approve checks for certain corporate payments from one of the company's in-house accounts.

Glickman said between Sept 5, 2001 and Dec 24, 2008, Garaventa stole more than USD 2.5 million that he used to buy a Mercedes and a Lexus, to buy jewellry, to renovate his home and to take family and friends to Aruba and other places.

Defense lawyer Lawrence Fredella said Garaventa maintains his innocence.

Justice Daniel FitzGerald set Garaventa's bail at USD one million and scheduled his return for March 4.

Morgan Stanley did not immediately return a request for comment.