by Kyle Colona on April 26, 2012
Garth Peterson, a former real estate executive in Morgan Stanley’s China unit pled guilty to breaking provisions of the Foreign Corrupt Practices Act (FCPA)
Mr. Peterson ran the Singapore office, where he “secretly” acquired millions of dollars of property investments for himself and a Chinese government official. In return the official then steered business Morgan’s way. How do you say “quid pro quo” in Mandarin?
DealBook reports that the fallen high roller also settled a civil action brought by the SEC. Now, Mr. Peterson faces a five year jail term and a fine of $250,000 for this play. Included in the plea arrangement is his agreement to be permanently barred from the securities industry, as well as giving up his interest in the property.
The case is said to be another in a “flurry of activity” centered on FCPA violation. The law prohibits American companies and executives from “bribing” government officials in foreign countries to win business. What happened to the government official in this case is unclear.