- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Adrianne Appel2023-03-16T20:21:00
Sterling Bancorp pleaded guilty to falsifying securities statements and will pay approximately $27.2 million in restitution, the Department of Justice (DOJ) announced.
Sterling avoided a criminal penalty in the case, as the DOJ opted to focus the payment total on restitution without threatening the viability of the bank’s operations, the agency said in a press release Wednesday.
The bank falsified securities documents prior to and following a 2017 initial public offering (IPO) to make it appear it had strong revenue, according to the DOJ. At the time, the bank’s residential loan program, “Advantage Loan Program,” served as its primary loan product and was marred by fraudulent applications. The continuing deficiencies in the program, ALP, caused the bank to falsify filings with the Securities and Exchange Commission (SEC) through 2019, the DOJ said.
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The Office of the Comptroller of the Currency issued a cease-and-desist order against the former general counsel at Sterling Bank and Trust for not ensuring the institution’s Bank Secrecy Act compliance and failing to timely file suspicious activity reports.
The Department of Justice codified a new policy regarding the voluntary self-disclosure of corporate misconduct, following recent announcements on the updates by agency officials.
Deputy Assistant Attorney General Lisa Miller spoke to the value of deferred prosecution agreements to resolve corporate misconduct amid renewed criticism directed toward the Department of Justice’s 2021 agreement with Boeing.
A lack of supervision and internal controls at Morgan Stanley Smith Barney allowed four of its investment advisers to steal millions from customers before the behavior was detected, the SEC said in charging the firm.
A subsidiary of McKinsey & Co. will pay nearly $123 million to the Department of Justice to settle allegations that it bribed officials in South Africa to win consulting contracts.
A defamation lawsuit filed by a whistleblower against USAA, which a Florida judge recently dismissed on a technicality, revealed in public court records an estimated 400,000 violations of the Military Lending Act by USAA Federal Savings Bank (USAA Bank), an indirect wholly owned subsidiary of USAA.
