The phone-transcript mystery in the Morgan Stanley block trading settlement

For the record: The statement of facts in the case includes multiple transcribed phone calls between Passi and hedge funds. But they weren’t obtained easily. The wording is intriguing:

“These calls were not recorded by Morgan Stanley, nor did they take place on a regularly-recorded line, unless otherwise noted. Rather, the Government obtained the calls described below, as well as other calls in which Morgan Stanley employees discussed block trades, in the course of its investigation.”

Between the lines: The behavior in question took place — by Passi’s own admission — between 2018 and 2021. But Passi’s damning transcribed phone calls took place at the very end of that date range, in May 2021 or later.

Be smart: The government doesn’t say exactly how it obtained the calls. But there are a few possibilities.

Source: The phone-transcript mystery in the Morgan Stanley block trading settlement