Morgan Stanley’s Garth Peterson, a managing director based in Shanghai, was fired for doing business the old fashion way—bribing government officials.
Peterson who is fluent in Chinese had become a big mover and shaker in the real estate investment market in China.
Morgan Stanley alerted the Securities & Exchange Commission of his less than forthright dealings and a probe is under way to see what shenanigans Mr. Peterson may have committed in violation of the United States Foreign Corrupt Practices Act.
Although the market has slumped recently, Morgan Stanley has done quite well in China, taking some of the countries’ largest real estate firms public over the last several years.
As for Mr. Peterson, if found guilty, picking out a safe place to serve out his time – it’s location-location.
