The Street.Com's Matthew Goldstein and Lauren Rae Silva report that Ira Chilowitz, the former Morgan Stanley consultant charged with stealing confidential information from Morgan Stanley's prime brokerage group is said to have passed information on to a former director of S3, a three year old hedge fund consulting firm founded by former Credit Suisse prime brokerage head Robert Sloan. The co-conspirator has not been charged.
Here's the nut graph from TheStreet.Com:
Prosecutors in Manhattan did not identify either the co-conspirator or the firm. But people familiar with the investigation confirmed that the firm is S3 and that the unidentified co-conspirator is a former director. These same people say the former S3 director, who previously worked in Morgan Stanley's prime brokerage group, was recently fired.
We should note that prosecutors have not alleged wrong doing on behalf of founder Bob Sloan, pictured above left, or S3 Partners itself. An earlier version of this item claimed that Chilowitz had also been an employee of S3. We're told by S3 that this was wrong, and Chilowitz never worked for the firm. We apologize to our readers and S3 for the error.
We still don't know the identity of the former S3 director alleged to have conspired with Chilowitz.
Adviser Eyed in Morgan Stanley Theft Probe [TheStreet.Com]
Our People [S3 Partners]