Friday, April 27, 2012

Garth, Ex-Morgan Stanley exec, pleads guilty to corruption charges




There has been speculation as of late that banks and private equity companies were in the prosecutorial crosshairs regarding the Foreign Corrupt Practices Acts (FCPA), which prosecutors have been zealous about in recent years, efinancialnews writes.

Much of the chatter has focused on sovereign wealth funds and their dealings with bank executives and private equity officials. The SEC has apparently sent requests for information to top banks, as part of its information gathering process. In this light, the guilty plea of Garth Peterson, the former head of Shanghai office of Morgan Stanley's global real estate business, is certainly interesting.

Garth was charged with illegally buying property for himself and a Chinese government official--the former chairman of the Yongye Enterprise Company, a state-owned entity--who in turn steered business to Morgan Stanley's funds. Garth has been barred from the securities industry and will pay more than $250,000 in disgorgement. He faces up to five years in prison and his sentence will be delivered on July 17.....

http://www.efinancialnews.com/story/2012-04-26/banker-pleads-guilty-in-china-bribery-case?mod=sectionheadlines-IB-AM

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