Garth Peterson Case Study

Economic crimes are a rapidly growing crime in the world encompassing corporations, individuals, government, and even organized criminals. A multitude of crimes fall under the white collar crime category, some of those include identity theft, bribery, insider trading, and embezzlement. The government has enacted many regulations that corporations must follow to assist in combating economic crime. Reducing the number of economic crimes in larger corporations each year. Despite having these regulations implemented one company that was affected by economic crime was Morgan Stanley in the case of the United States versus Garth Peterson. Garth Peterson is a United States citizen who from 2002 to 2008, worked for Morgan Stanley and held various

In December of 1994, the Luwan District government incorporated the Shanghai Yongye Enterprise, to operate as the Luwan District government's real- estate development arm. The Luwan District government is the processor of 100 percent of Yongye’s shares (US Department of Justice). In turn, on the Luwan District's behalf, Yongye purchased much of the land in prime areas assisting in the development of the district. Among other things, Yongye also purchased small shares of joint ventures with other investors, such as the Morgan Stanley Real Estates Group. In an effort to encourage, facilitate, and coordinate outside investment in the Luwan

Including opportunities involving Shanghai government properties that Yongye Enterprise developed. In 2004, in a project named "Project Cavity," Morgan Stanley Real Estate offered to purchase one of the towers to a building originally purchased in 2002 by a group of investors that included Yongye and Morgan Stanley as minority investors. The tower being sold from this building was called Tower Two. Around October 2004, Yongye had agreed to sell Tower Two to another bank, but the sale agreement with this other bank had not been finalized. In the meantime, Morgan Stanley Real Estate Group offered to purchase on an expedited basis all of Tower Two from the group of investors. To consummate the purchase, Morgan Stanley was required to obtain consent from all of Tower Two's original owners. In this process the Chinese Official represented Yongye in connection with Project Cavity. Approximately on November 10, 2004, Chinese Official agreed on the behalf of Yongye and the Luwan District government to sell Tower Two to Morgan Stanley’s Real Estate