Garth R. Peterson: Lit. Rel. No. 22346 / April 25, 2012

Garth R. Peterson: Lit. Rel. No. 22346 / April 25, 2012

The Securities and Exchange Commission today charged a former executive at Morgan Stanley with violating the Foreign Corrupt Practices Act (FCPA) as well as securities laws for investment advisers by secretly acquiring millions of dollars worth of real estate investments for himself and an influential Chinese official who in turn steered business to Morgan Stanley’s funds.

The SEC alleges that Garth R. Peterson, who was a managing director in Morgan Stanley’s real estate investment and fund advisory business, had a personal friendship and secret business relationship with the former Chairman of Yongye Enterprise (Group) Co. – a Chinese state-owned entity with influence over the success of Morgan Stanley’s real estate business in Shanghai. Peterson secretly arranged to have at least $1.8 million paid to himself and the Chinese official that he disguised as finder’s fees that Morgan Stanley’s funds owed to third parties. Peterson also secretly arranged for him, the Chinese official, and an attorney to acquire a valuable Shanghai real estate interest from a Morgan Stanley fund. Peterson was acquiring an interest from the fund but negotiated both sides of the transaction. In exchange for offers and payments from Peterson, the Chinese official helped Peterson and Morgan Stanley obtain business while personally benefitting from some of these same investments. Peterson’s deception, self-dealing, and misappropriation breached the fiduciary duties he owed to Morgan Stanley’s funds as their representative.  

International Whistleblower Reward Laws Encourage Chinese Whistleblowers and International Whistleblowers to Expose Chinese Government Official Bribes, Chinese Public Official Illegal Kickbacks, and other Chinese Government Corruption which are Violations of the Foreign Corrupt Practices Act by China International Business Whistleblower Lawyer, People's Republic of China International Bribery Scheme Lawyer, and China Foreign Corrupt Practices Act Whistleblower Lawyer Jason S. Coomer

Multinational Corporations that pay illegal kickbacks and bribes to Chinese government officials and former Chinese government officials in exchange for Chinese construction contracts, Chinese public health care pharmaceutical contracts, customs false certifications through Chinese ports, and other international business advantages can be brought to justice and made to pay large penalties under the Foreign Corrupt Practices Act and the China bribery scheme international whistleblower that exposes these foreign corporations are granted protections and may be able to collect large economic rewards under new international whistleblower laws.  For more information on this topic, please feel free to go to the following webpage: International Whistleblower Reward Laws Encourage Chinese Whistleblowers and International Whistleblowers to Expose Chinese Government Official Bribes, Chinese Public Official Illegal Kickbacks, and other Chinese Government Corruption.