Enforcement Archive

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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Sep 12, 2019
SEC’s Clayton bemoans international anti-graft enforcement
SEC chair Jay Clayton has expressed concern that, in his view, some authorities around the world are not doing what they should to combat bribery and corruption. In remarks to the Economic Club of New York earlier this week, Clayton said his agency has brought almost 80 FCPA cases over the past five years, involving alleged misconduct in more than 60 countries. Two companies settled FCPA actions in late August alone: Sunnyvale, California-based ...
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Sep 05, 2019
Juniper Networks settles FCPA enforcement
Sunnyvale, California-based Juniper Networks has agreed to pay almost $12 million to settle allegations that it violated the FCPA through subsidiaries operating in Russia and China. The settlement last week came just days after Deutsche Bank agreed to pay more than $16 million to resolve claims it too had violated the anti-corruption ...
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Aug 28, 2019
Deutsche Bank settles FCPA action over hiring allegations
Deutsche Bank has agreed to pay more than $16 million to settle claims it violated the FCPA through recruitment practices outside the US. The SEC alleges in its administrative proceeding that the lender between at least 2006 and 2014 gave ‘valuable employment’ to relatives of foreign government officials in various parts of the world as a personal benefit to those officials in order to ‘impro...
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Aug 23, 2019
TherapeuticsMD settles Reg FD action
Boca Raton, Florida-based TherapeuticsMD has agreed to pay a $200,000 penalty to settle allegations it violated Regulation Fair Disclosure (Reg FD) by sharing material, non-public information with analysts without also publicly disclosing the same information. Specifically, the SEC alleges in its administrative proceeding that TherapeuticsMD made selective disclosures of material non-public informa...
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