Morgan Stanley Associate Suspended for Wiring Money to Hacker
Financial Industry Regulatory Authority Department of Enforcement
Debra J. Ferrara
Background: Ferrara entered the industry in 1983 and worked for Citigroup from June 1, 2005 to June 1, 2009 before joining Morgan Stanley by way of acquisition. Ferrara was employed as a non-registered client service associate with Morgan Stanley until she was terminated by the firm in December 2011 for falsely attesting on verbal wire processing forms that she spoke to a client prior to executing wire transfers.
Overview: Between November 21, 2011 and December 2, 2011, Ferrara falsified firm forms in connection with five fraudulent wire transfers totaling $108,680 from a Morgan Stanley customer to a third-party bank account. Ferrara submitted the wire transfers for processing based on email instructions she received from an imposter who had hacked into the customer’s email account.
Result: Ferrara consented to a 60-day suspension from associating with any FINRA member and a $5,000 deferred fine.