NASD accuses Morgan Stanley of lying about losing emails

NASD accuses Morgan Stanley of lying about losing emails."The National Association of Securities Dealers (NASD) has accused investment house Morgan Stanley of lying that millions of emails it possessed were lost in the terrorist attacks on the World Trade Center.  The NASD claims Morgan Stanley routinely fails to provide emails dated prior to Sept. 11, 2001 to claimants and regulators involved in arbitration proceedings - even though the company deployed backup tapes to replicate the emails and others were saved on users' PCs, the complaint said. But Morgan Stanley later did destroy its saved emails by overwriting backup tapes and by permitting users to permanently delete messages, the complaint said.  "It is essential that firms comply with discovery obligations in arbitration proceedings and respond fully and truthfully to regulatory requests," said James S. Shorris, executive vice president and head of enforcement for NASD. . . . "