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* Peter Humphrey and wife sentenced to jail
* British corporate investigator to be deported
* Unclear whether wife will also be forced to leave China
* Couple have 10 days to appeal Shanghai court ruling (Recasts, adds statement from couple's son, testimony fromtrial)
By Brenda Goh and Engen Tham
SHANGHAI, Aug 8 (Reuters) - China sentenced a Britishcorporate investigator to 2-1/2 years in prison on Friday forillegally obtaining private records of Chinese citizens andselling the information on to clients including drugmakerGlaxoSmithKline Plc.
Peter Humphrey and his American wife, Yu Yingzeng, who ranrisk consultancy ChinaWhys, were tried in a Shanghai court. Theysaid they were unaware such acts were criminal.
In a late evening verdict, the court said it found Humphreyand Yu guilty and handed Yu a slightly more lenient sentence oftwo years in jail. Humphrey was fined 200,000 yuan ($32,500),while Yu was fined 150,000 yuan.
According to a statement read out by a court official at apress conference, Humphrey will be deported. The court gave nofurther details about that aspect of the judgment.
"The two defendants illegally collected Chinese citizens'information over a long period of time and on many occasions.They collected a large amount of data and had also used illegalmeans, including investigative methods," said Tang Liming,vice-president of Shanghai No.1 People's Intermediate Court.
The couple have the right to appeal their sentence within 10days, the court said, adding that it had confiscated a laptopand hard drive from them.
They were detained last year following work they did forBritish pharmaceuticals giant GSK, which is at the centre of aseparate government corruption investigation involving hundredsof millions of dollars.
They have spent the last 13 months in a Shanghai prison.
Their testimony was being closely watched for any commentsthat could shed light on the GSK corruption probe, but there wasno mention of the company during the one-day trial, even thoughprosecutors brought up investigations by other foreign firms.
CHILLS THROUGH INVESTMENT COMMUNITY
The trial has unsettled the foreign business community,which relies on risk consultancies for information on potentialpartners, existing employees or firms in China, where such datais not easily available.
Prosecutors charged that the couple had illegally obtainedand sold more than 250 items of private information, includinghousehold registration data, real estate documents and phonerecords - a charge which could have led to a sentence of up tothree years in prison.
Humphrey, a 58-year-old former journalist, and his wifeacknowledged they were operating in a legal "grey area" at timeswhen gathering information, but they had at no point thoughtthey were doing anything unlawful.
"In other countries, we were able to conduct similar checks,including personal information and private transactions, legallythrough courts," Yu said, according to transcripts published onthe court's microblog.
"If we had known that it was illegal, my husband and I wouldhave destroyed all traces of this information."
Yu, who with Humphrey made her statements in English, alsosaid she did not know that third-party consultants hired byChinaWhys, one of them a registered lawyer, had obtainedinformation illegally.
In testimony read out in court, Humphrey said the duediligence services offered by ChinaWhys largely relied onpublicly available records and interviews with executives.
Foreign journalists had no access to the trial, but atelevision in the media room momentarily broadcast a grainyimage which showed Humphrey, dressed in a polo t-shirt andjacket, sitting down inside the courtroom appearing weary.
The couple's 19 year-old son, Harvey, was in the courtroomwith embassy officials. He told Reuters after the sentencingthat he was sad about the verdict. "I hope the authorities willtake into account my parents' poor health."
GSK LINKS
The couple's arrest last year coincided with a governmentprobe into allegations that GSK staff had funnelled hundreds ofmillions of pounds through travel agencies to bribe localdoctors and health officials to boost sales and raise prices.
While Chinese authorities have not directly connected thearrest of the couple to the GSK probe, Humphrey said in a notelast year while in detention that he felt "cheated" by GSK,adding that the drugmaker had not shared the full details of thebribery allegations.
A GSK spokesman declined to comment on the trial. Thedrugmaker said in July that the issues relating to its Chinabusiness were "very difficult and complicated."
The trial also coincides with a growing number of Chineseanti-trust probes that have seen authorities raid offices ofWestern firms, highlighting the obstacles foreign companies facein navigating China's murky business world.
Humphrey, who worked for Reuters as a journalist in the1980s and 1990s, has previously apologised on state televisionfor breaking any Chinese law.
In closing remarks to the trial, the couple stressed theirlove for China, and said they were sorry for their actions.
"My wife and I still love and respect China. My son is hereto listen to China, and I've taught him that despite this case,he will still love and respect China," Humphrey said. (Additional reporting by Shanghai Newsroom; Editing by MiralFahmy and Mike Collett-White)
