Morgan Stanley Real Estate Investing’s head Sonny Kalsi has been put on administrative leave with immediate effect.

Kalsi, 41, the global head of Morgan Stanley Real Estate Investing, has worked at Morgan Stanley for 18 years.

His suspension follows the news yesterday that a senior director in Morgan Stanley Real Estate’s China office, managed by Kalsi, was sacked for alleged misconduct. According to a filing to the Securities and Exchange Commission in New York Morgan Stanley Real Estate said ‘it had recently uncovered actions related to an employee based in China in an overseas real estate subsidiary that appear to have violated the Foreign Corrupt Practices Act. Morgan Stanley terminated the employee, reported the activities to appropriate authorities and is continuing to investigate the matter.’

The Foreign Corrupt Practices Act is a US law that prohibits corporate bribery. The filing did not state who the employee under investigation was or when they left.

Kalsi’s position has been taken over by Owen Thomas, who will become chief executive office and chairman while maintaining his current role as head of Morgan Stanley Asia.

The co-head of Morgan Stanley’s merchant banking division Jay Mantz will become president and chief investment officer of Morgan Stanley Real Estate Investing. Tim Morris will take on additional responsibilities as chief operating officer while continuing to run the Morgan Stanley Real Estate Special Situations Fund.

Morgan Stanley was unavailable for comment.