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.....
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