Enforcement Archive

Dec 13, 2016
Citigroup Global Markets has agreed to pay an $850,000 fine to settle allegations its compliance systems and procedures were lacking in ways linked to ascertaining the value of its securities holdings and its net capital. The Financial Industry Regulatory Authority (Finra) has accepted a letter of acceptance, waiver and consent from the firm, which does not admit or deny wrongdoing. A message left with Citigroup’s press office requesting comment was not returned....
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Jun 14, 2016
Financial rewards hamper internal wrongdoing investigations
Last week, the SEC announced its second-largest whistleblower award in the five years the program has existed. A former employee of an unnamed company was awarded $17 million for providing a ‘detailed tip [that] substantially advanced the agency’s investigation and ultimate enforcement action.’ In a news release on June 9, Sean McKessy, chief of the SEC’s office of the whistleb...
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Jun 09, 2016
Weak controls key factor in majority of fraud cases worldwide, KPMG finds
Even as governments around the world ramp up their coordination efforts with each other and their enforcement actions to combat corruption and other types of fraud, the problem of corporate fraud continues to grow. A recent survey by KPMG finds that weak internal controls were a contributing factor in 61 percent of 750 fraud cases studied, up from 54 percent of fraud cases examined in the previous survey in 2013.      The accelerated pace of change both within ...
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Apr 07, 2016
This week’s news that prosecutors globally – including the US Department of Justice (DOJ) – have initiated probes into the Panama Papers leaks reinforces the closer scrutiny to which financial crimes and their individual perpetrators are now subject. Last September the Yates memo announcing the DOJ’s intention to step up enforcement actions against individuals for criminal miscond...
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Mar 02, 2016
Yet another former corporate governance officer has collected a hefty whistleblower award from the US government. On March 1, a federal court in New Jersey unsealed filings related to John Slowik’s whistleblower lawsuit against his former employer, Olympus Corp of the Americas, which yielded him $51 million for information he provided about global kickback schemes to the US Department of Justice. The award represents Slowick’s share of a total of $646 million in settle...
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Feb 29, 2016
More than one in three US organizations report having been the victim of economic crime and cybercrime has risen to become the second most reported kind of economic crime, according to PwC’s Global Economic Crime Survey 2016, whose US results were released on February 25.  Globally, nearly 6,300 respondents from 115 countries participated in the survey, 1,100 more than in the 2014 survey. While just 8 percent of respondents were from North America, the 328 partic...
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Sep 15, 2015
There is lots of room for improvement in companies’ anti-bribery and corruption (ABC) compliance programs, according to the results of a recent survey by KPMG International. Some of the most striking findings concern companies’ use of third party service providers, such as local agents with experience dealing with government officials in foreign markets. Many companies perform upfront due diligence when bringing third parties aboard, but most don’t go far enou...
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Aug 03, 2015
Last week, Mead Johnson Nutrition’s reached a $12 million settlement with the SEC, which found that the company had violated provisions of the FCPA.  This settlement holds some valuable lessons for other firms conducting business with foreign distributors in high-risk jurisdictions. Mead Johnson’s Chinese subsidiary was charged with making $2 million in improper payments over a five-year period to healthcare professionals at government-owned hospitals. The paym...
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Jul 23, 2015
When the Department of Justice (DoJ) decides a company has criminally violated the FCPA, the most likely resolution is a negotiated settlement – specifically, a non-prosecution agreement (NPA) or a deferred prosecution agreement (DPA). Those resolutions became common several years ago, and have far outstripped alternatives such as indictments against individuals or companies. NPAs and DPAs are controversial. A Manhattan Institute report titled ‘Without law or li...
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