A former Morgan Stanley employee was charged with conspiring to steal the firm's secret list of administrative fees billed to hedge fund clients.

U.S. prosecutors in New York said Ronald Peteka wanted to form a consulting business that would help hedge funds and pension funds do business with his former employer and other banks.

Mr. Peteka is the second defendant charged in the case. In February, Ira Chilowitz, a former Morgan Stanley consultant, said he and Mr. Peteka plotted to set up a business to help hedge funds negotiate fees paid to banks for prime brokerage services.

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