Enforcement Archive

May 22, 2020
The week in GRC: Lockdowns may slow government probes of companies, and shareholders re-elect BlackRock board
– According to CNN, SoftBank announced that Alibaba founder Jack Ma had decided to resign from its board. Ma, who is still a director of the Chinese e-commerce company, had held the seat for nearly 13 years. He is the latest noteworthy board member to leave, after billionaire and Fast Retailing founder Tadashi Yanai’s departure at the end of last year. Ma’s departure comes ...
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May 13, 2020
BIOMIN America settles Cuba sanctions case
Overland Park, Kansas-based BIOMIN America has paid $257,862 to settle its potential civil liability for ‘apparent violations’ of US sanctions against Cuba. The US Department of the Treasury’s Office of Foreign Assets Control (OFAC), which brought the action, says it ‘demonstrates the importance of US companies with a global presence maintaining appropriate sanctions compliance programs, particularly when dealing with foreign subsidiaries and affiliates.’...
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Apr 29, 2020
General counsel urged to check insider trading policies during pandemic
General counsel should be taking steps to ensure their company is geared up to prevent insider trading that may arise from pandemic-related information – particularly given the government’s recent use of a statute that makes prosecuting certain cases easier, according to Robert Frenchman, partner with litigation firm Mukasey Frenchman & Sklaroff. The SEC’s top enforcers last month ...
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Mar 25, 2020
SEC enforcers warn directors about insider trading amid Covid-19
The SEC’s top enforcers have warned directors and executives against taking advantage of developments arising from the Covid-19 pandemic to engage in insider trading. Stephanie Avakian and Steven Peikin, co-directors of the SEC’s division of enforcement, in a statement on Monday emphasized the need to follow corporate controls and procedures during this period. ‘[I]n these dynamic circumstances, corporate insiders are regularly learning new material non...
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Mar 03, 2020
Cardinal Health resolves China-linked FCPA action
Dublin, Ohio-based Cardinal Health has agreed to pay more than $8 million to resolve allegations that it violated FCPA books and records and internal accounting controls provisions in relation to its former unit in China. ‘Cardinal’s foreign subsidiary hired thousands of employees and maintained financial accounts on behalf of a supplier without implementing anti-bribery controls surrounding these high-risk business practices,’ Anita Bandy, an associate direct...
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Feb 20, 2020
Diageo fined $5 million over alleged disclosure lapses
Alcohol company Diageo has agreed to pay a $5 million penalty to settle allegations that it failed to make necessary disclosures following efforts by its North American subsidiary to counteract weak market conditions. Diageo, which is listed on both the NYSE and London Stock Exchange, owns brands including Johnnie Walker, Crown Royal, J&B, Buchanan’s and Windsor whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and ...
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Jan 22, 2020
Citibank settles flood-insurance action for $18 million
Citibank has agreed to pay almost $18 million to settle allegations that its Sioux Falls, South Dakota business violated the Flood Disaster Protection Act of 1973 (Flood Act). According to the Federal Reserve, the Flood Act requires federal financial regulatory agencies to adopt regulations prohibiting their regulated lending institutions from pro...
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Oct 10, 2019
Barclays settles FCPA allegations over Asia hires
Barclays has agreed to pay a total of $6.3 million to resolve allegations that the UK-based bank violated the FCPA through employment practices in Asia. The SEC alleges in an administrative proceeding that from 2009 until roughly August 2013, businesses within Barclays’ Asia-Pacific region (APAC) provided ‘valuable employment’ to relatives and friends of government officials and executives of...
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Oct 03, 2019
Fiat Chrysler Automobiles US settles sales reporting case
Fiat Chrysler Automobiles (FCA NV) and its Auburn Hills, Michigan-based subsidiary FCA US have agreed to pay $40 million to settle allegations of misleading investors about vehicle sales. Specifically, the SEC alleges in its administrative proceeding that FCA US from at least August 2012 to July 2016 fraudulently misled investors about the number of new vehicles that it and its dealers sold each mo...
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