Morgan Stanley CEO John Mack may have thought the ship was turned, that the embattled firm had finally put its regulatory and management embarrassments behind it. After all, Mack spent the past seven months performing a little management hygiene, recruiting allies to fill executive positions as well as the board of directors and quieting the earlier negative press coverage.

Alas, now another bad headline. Morgan Stanley’s technology department head, Guy Chiarello, is accused of abusing his position to win gifts and services from tech companies with which Morgan does business, The New York Post reports today.

The improprieties came to light after a former technology executive, Arthur Riel, filed a lawsuit against the company, alleging he was fired for aiding a government investigation into misconduct at the firm’s computer department. In the suit, Riel says he reported Chiarello’s ethical violations to the firm, which refused to investigate. Click here for the full story. (Registration required)