Enforcement Archive

Sep 18, 2018
United Technologies settles FCPA action
United Technologies Corporation (UTC) has agreed to pay almost $14 million to settle allegations it violated the FCPA through subsidiaries’ actions in Asia. The SEC alleges in an administrative proceeding that UTC from around 2012 until 2014, via its subsidiary Otis Elevator Company, made unlawful payments to Azerbaijan officials to facilitate the sales of elevator equipment. According to the age...
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Sep 12, 2018
SEC promotes senior enforcers
The SEC has named Anita Bandy and Carolyn Welshhans associate directors in the agency’s enforcement division. In their new roles, Bandy and Welshhans each supervise roughly 40 attorneys, paralegals and staff responsible for investigating a broad range of securities law violations. Bandy joined the SEC in 2004 and has been an assistant director in the enforcement division since 2013. During her time with the agency, she has led enforcement initiatives and su...
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Sep 06, 2018
Sanofi settles FCPA case for $25 million
French pharmaceutical company Sanofi has agreed to pay more than $25 million to resolve SEC charges that its Kazakhstan and Middle East subsidiaries made corrupt payments to win business. ‘Bribery in connection with pharmaceutical sales remains a significant problem despite numerous prior enforcement actions involving the industry and life sciences more generally,’ says Charles Cain, FCPA unit chief in the SEC’s enforcement division, in a statement. ‘While b...
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Aug 16, 2018
Law firm questions SEC’s whistleblower plans
Attorneys at Kohn, Kohn & Colapinto have raised concerns that the SEC is at risk of undermining post-financial crisis efforts to promote the reporting of corporate wrongdoing. The agency in late June proposed amendments to the rules governing its whistleblower program. It was established in 2010 under the Dodd-Frank Act to encourage individuals to re...
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Jun 06, 2018
SocGen reaches US settlements on Libor allegations
Société Générale (SocGen) has agreed to pay $475 million to settle US regulators’ allegations that it tried to manipulate key benchmark interest rates. The French bank reached the agreement with the Commodity Futures Trading Commission (CFTC) without admitting or denying wrongdoing. Specifically, the CFTC alleges in a regulatory order that from 2006 through mid-2012 ...
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Apr 20, 2018
The week in GRC: Wells Fargo to pay $1 billion to settle probes, and Cuomo pressures banks over NRA ties
– The Financial Times reported that BlackRock founder and CEO Larry Fink made $28 million last year, up by nearly 10 percent from 2016 and 195 times the median compensation at the world’s biggest asset manager, which has campaigned against excessive executive pay. According to BlackRock’s most recent proxy statement, Fink was paid a base salary of $900,000 in the 12 months to Decem...
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Apr 02, 2018
Canadian mining company settles FCPA case
A Canadian gold mining company has agreed to pay $950,000 to settle allegations that it violated anti-corruption legislation by failing to implement adequate accounting controls at two African subsidiaries. The SEC alleges that Kinross Gold Corporation took almost three years after buying the subsidiaries to implement adequate controls, despite multiple internal audits flagging deficiencies – and that even then the company failed to maintain the controls. ...
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Mar 19, 2018
How to protect against subsidiary liability
Companies both large and small enter new ventures all the time. Netflix was originally a DVD delivery service, Amazon sold only books until 1998 and Pixar Animation was only a computer engineering and special effects company for more than a decade. When businesses diversify, they may seek to insulate an established line of business from the liabilities of a new venture by forming separate, wholly owned subsidiaries. Nearly all of us assume that the enterprise will b...
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Jan 03, 2018
Citi unit settles research ratings case
Citigroup Global Markets (CGMI) has agreed to pay a total of around $11.5 million to settle allegations that over an almost five-year period it showed incorrect recommendations as to whether clients should buy or sell a wide range of stocks. CGMI agreed to settle Finra’s disciplinary action without admitting or denying wrongdoing. It will pay a $5.5 million fine and at least $6 million in compensation to retail customers. A spokesperson for CGMI says the firm is ...
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