Following his loss in the state comptroller election in 2002, Faso joined the firm of Manatt, Phelps & Phillips as a lobbyist/partner; he took a leave of absence to run for governor in 2006, then rejoined the firm. Manatt, Phelps & Phillips agreed to a settlement in 2010 in response to a corruption probe in which the firm was investigated for its "efforts to serve as a "placement agent" for public pension funds in New York and California without a state or federal license." According to the Wall Street Journal, some "of Manatt's efforts to secure investments were made by John Faso".