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 | Investigations Dataset

Stanford Foreign Corrupt Practices Act Clearinghouse a Collaboration with Sullivan & Cromwell LLP

Investigations Dataset

 
Investigation into Morgan Stanley's Activities in China · Morgan Stanley

Information & Summary

Investigation into Morgan Stanley's Activities in China

Related FCPA Matter:   Morgan Stanley's Involvement in China Information

Information & Summary

Investigation Name:    Investigation into Morgan Stanley's Activities in China

Trend:    None

Type of investigation:    Internal, SEC, DOJ

Other Agencies Investigating/Assisting with SEC/DOJ Investigation:    Unknown

Whistleblower:    Unknown

Summary

Morgan Stanley (Morgan) is an American multinational investment bank and financial services company headquartered in New York City. It on the Fortune 500 and its stock is traded on the NYSE.

According to its May 7, 2012 10-Q filing, in February 2009, Morgan disclosed that it had uncovered actions initiated by an employee based in a China subsidiary that appeared to have violated the FCPA. Morgan terminated the employee, reported the activity to appropriate authorities and cooperated with the investigations by the DOJ and SEC.

On April 25, 2012, the DOJ announced that the former employee had pled guilty to certain criminal charges, and the SEC announced that it had brought certain civil charges against the former employee. On the same day, both the DOJ and SEC announced that they would not take any action against Morgan in connection with the matter. In the press release announcing the enforcement action against Morgan's former employee, the SEC stated the following: "Morgan Stanley, which is not charged in the matter, cooperated with the SEC’s inquiry and conducted a thorough internal investigation to determine the scope of the improper payments and other misconduct involved." The DOJ noted: "After considering all the available facts and circumstances, including that Morgan Stanley constructed and maintained a system of internal controls, which provided reasonable assurances that its employees were not bribing government officials, the Department of Justice declined to bring any enforcement action against Morgan Stanley related to Peterson’s conduct. The company voluntarily disclosed this matter and has cooperated throughout the department’s investigation."

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