Boutique M&A adviser fires Japan executives

TOKYO, Jan 23 (Reuters) - Morgen, Evan & Co., a boutique New York merger adviser, said on Tuesday it had fired two managers at its Tokyo office for alleged "unauthorised banking transactions".

Morgen, Evan, which has advised on deals involving Mitsubishi Electric Corp. (6503.T: Quote, NEWS , Research) and Oki Electric Industry Co. (6703.T: Quote, NEWS , Research), told clients in an e-mail earlier that it had fired Managing Directors Tom Eastling and Keiji Kuramoto.

President Mark Lerner, in a telephone interview with Reuters on Tuesday, characterised the managers' actions as a "misappropriation of funds" and said "a meaningful amount of money" was involved, but he would not disclose the figure.

Eastling and Kuramoto have not provided an explanation for the bank transactions or responded directly to the company's claims, Lerner said.

Eastling and Kuramoto could not be reached for comment.

In the e-mail, Lerner told clients: "We are still trying to fully unwind and understand the situation, but our conclusion has been that we had to immediately terminate the employment of both Mr. Eastling and Mr. Kuramoto."

He said "compelling evidence ... of unauthorized banking transactions with the Morgen, Evan Tokyo bank account" had first surfaced on Dec. 29.

Lerner is a former head of Chase Manhattan Bank's Japanese corporate finance group and Merrill Lynch's (MER.N: Quote, Profile , Research) Japanese investment banking operation. His e-mail described Eastling as the "primary face" of Morgen, Evan in Japan.

Lerner said Vincent Poizat, another Morgen, Evan managing director, would take over responsibility for Eastling's projects while Takashi Kobayashi would manage the Tokyo office on an interim basis.