Internal Investigations


SECBooks

Evoqua Water Technologies to pay $8.5M for alleged revenue inflation

2023-03-14T16:38:00+00:00By

Evoqua Water Technologies Corp. agreed to pay $8.5 million to resolve charges the actions of a former company finance director led the firm to misstate its revenue in filings with the Securities and Exchange Commission.

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SEC orders Rio Tinto to pay $15M over FCPA violations

2023-03-07T19:21:00+00:00By

U.K.-based mining and minerals company Rio Tinto will pay a $15 million fine to settle charges of violating the Foreign Corrupt Practices Act when it entered into a scheme with a consultant in 2011 to bribe government officials in Guinea.

Google HQ

​Google, Uber CCOs share approaches to data analytics

2023-03-07T13:30:00+00:00By

The chief compliance officers of Google and Uber offer insight into how their data analytics compliance programs have evolved amid enhanced scrutiny on use of technology from the Department of Justice.

Credit Suisse

FINMA: Credit Suisse ‘seriously breached’ duty regarding Greensill

2023-03-01T17:26:00+00:00By

Poor risk management by Credit Suisse’s asset management company kept the bank mostly unaware of the risky nature of lending procedures used by Lex Greensill that would lead to the collapse of Greensill Capital, according to Switzerland’s Financial Market Supervisory Authority.

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DOJ publishes voluntary self-disclosure policy for corporations

2023-02-23T17:46:00+00:00By

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.

Mormon church

Mormon church, investment manager pay $5M for misstating asset ownership

2023-02-21T20:32:00+00:00By

The Church of Jesus Christ of Latter-day Saints and its investment advisory firm agreed to pay a total of $5 million to settle charges from the Securities and Exchange Commission that both entities conspired to obscure the value of the church’s investments.

Accounting fraud

Roadrunner avoids $9.6M in penalties in SEC accounting fraud case

2023-02-15T16:56:00+00:00By

Roadrunner Transportation Systems avoided further penalties regarding allegations of accounting fraud after the Securities and Exchange Commission deemed a $20 million class-action settlement agreed to in 2019 returned any ill-gotten gains.

Newspapers

Lee Enterprises flags ICFR weaknesses following internal review

2023-02-07T19:58:00+00:00By

Lee Enterprises, the media company that owns the St. Louis Post-Dispatch and 76 other newspapers nationwide, concluded its internal controls over financial reporting were not effective for the fiscal year ended Sept. 25, 2022.

Magnifying glass

Acacia Research says probe confirmed ex-CEO’s misconduct

2023-02-06T17:21:00+00:00By

Acacia Research Corp. disclosed the completed findings of its internal investigation into former CEO Clifford Press and whether he misappropriated corporate funds and resources for personal use.

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Allianz case questions if DOJ encouraging scapegoating in individual liability push

2023-02-02T19:21:00+00:00By

Is the Department of Justice’s focus on individual accountability in white-collar crime cases encouraging companies to scapegoat their employees? A recent court filing in a $6 billion corporate fraud case could give company officers some sleepless nights.

Morgan Stanley

Reports: Morgan Stanley fines bankers up to $1M for off-channel communications

2023-01-26T18:23:00+00:00By

Morgan Stanley fined its employees up to $1 million for using unauthorized communication channels in violation of recordkeeping rules, according to multiple reports.

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DOJ urges voluntary self-disclosure in corporate enforcement policy updates

2023-01-18T17:17:00+00:00By

The Department of Justice unveiled new incentives to encourage companies to voluntarily report violations of the Foreign Corrupt Practices Act, including steep discounts in monetary fines against businesses that self-disclose misconduct.

McDonalds

McDonald’s avoids SEC fine for misleading statements related to fired CEO

2023-01-09T19:21:00+00:00By

The Securities and Exchange Commission found McDonald’s violated federal securities law when it failed to fully disclose material factors regarding the firing of former Chief Executive Stephen Easterbrook in 2019.

Ericsson

DOJ, SEC extend Ericsson compliance monitorship one year

2022-12-15T14:55:00+00:00By

Swedish telecommunications company Ericsson agreed with U.S. authorities on a one-year extension of its independent compliance monitorship after a second breach of its obligations under a deferred prosecution agreement earlier this year.

Avaya

Avaya discloses ICFR weaknesses linked to whistleblower logs

2022-12-02T18:23:00+00:00By

Avaya Holdings disclosed its assessment of internal control over financial reporting in its fiscal year 2021 annual report can’t be relied upon, along with acknowledging weaknesses in its ethics and compliance program.

Julius Baer

FCA fines Julius Baer subsidiary $21.5M for bribery scheme

2022-11-30T16:54:00+00:00By

Julius Baer International will pay more than £18 million (U.S. $21.5 million) to settle charges laid by the U.K. Financial Conduct Authority for paying bribes to generate business with a Russian oil company.

Unisys

Unisys: Probe identified ‘material weaknesses’ in disclosure controls

2022-11-22T20:47:00+00:00By

IT services company Unisys Corp. revealed the discovery of faults in its internal control over financial reporting, including involving its compliance functions, following an internal investigation it first disclosed earlier this month.

Leidos_Web

Leidos Holdings under investigation for alleged FCPA violations

2022-11-03T17:02:00+00:00By

Leidos Holdings, a Virginia-based information technology, engineering, aerospace, and defense firm, disclosed it is under investigation by federal law enforcement for alleged violations of the Foreign Corrupt Practices Act.

Automation

Automation can improve AML compliance but won’t replace human touch

2022-10-28T16:41:00+01:00By

While automation has the potential to transform anti-money laundering compliance, it will not replace the human practitioners relied upon to get investigations to the finish line, experts discussed at the ACAMS annual conference in Las Vegas.

Money laundering

Effective collaboration key to fight against financial crime

2022-10-10T14:16:00+01:00By James Thomas, International Compliance Association

The Fintel Alliance—a partnership involving AML regulator AUSTRAC, Western Australia Police, and analysts from a handful of large banks—provides an example of the positive outcomes of collaboration in fighting financial crime.

Sterling Bank

​Sterling Bank fined $6M by OCC over loan program lapses

2022-09-28T17:48:00+01:00By

Sterling Bank and Trust agreed to pay a fine of $6 million assessed by the Office of the Comptroller of the Currency for deficiencies in its former residential loan product.

Raymond James

Raymond James unit fined $500K for supervisory failures

2022-09-23T14:32:00+01:00By

A broker-dealer unit of Raymond James Financial agreed to pay $500,000 as part of a settlement with the Securities and Exchange Commission for alleged supervisory failures that included the input of a misinformed compliance officer.

DOJ wall

DOJ to emphasize individual accountability, prior misconduct in corporate crime probes

2022-09-16T15:50:00+01:00By

Deputy Attorney General Lisa Monaco announced sweeping changes to the Department of Justice’s efforts to fight corporate crime, including new guidance regarding individual accountability, voluntary self-disclosure, compliance monitors, and ways to strengthen compliance culture.

SECBooks

CHS avoids fine in SEC accounting fraud case

2022-09-02T16:04:00+01:00By

Minnesota-based agricultural cooperative CHS settled charges levied by the Securities and Exchange Commission that the company violated federal securities laws when it filed materially false financial statements with the agency over five years.

Albemarle

Albemarle in settlement talks with SEC, DOJ over FCPA violations

2022-08-05T15:34:00+01:00By

Chemical company Albemarle Corp. has entered settlement talks with the Securities and Exchange Commission and Department of Justice regarding potential violations of the Foreign Corrupt Practices Act.

Ericsson

SEC probing Ericsson over Iraq corruption scandal

2022-06-10T17:16:00+01:00By

The Securities and Exchange Commission opened an investigation into Ericsson following the Swedish telecommunications company’s acknowledgement of evidence of “corruption-related misconduct” that occurred in its Iraq operations.

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Compliance halts misconduct in SEC $5M RiverSource action

2022-05-26T13:36:00+01:00By

Minnesota-based broker-dealer RiverSource Distributors agreed to pay $5 million as part of a settlement with the Securities and Exchange Commission for improper switching of variable annuities carried out by certain of its employees.

Investigation costs

Report: Investigation costs rising, driven by data assessment inefficiencies

2022-05-11T20:18:00+01:00By

More than three-quarters of respondents to a Kroll global benchmark report said they have conducted an internal investigation into fraud or corruption within the past three years and that the cost of such probes is on the rise.

DOJ wall

​DOJ eyeing PetroNor board chairman in corruption probe

2022-04-14T19:12:00+01:00By

The Department of Justice has become involved in a corruption investigation focused on individuals at Oslo-listed oil and gas exploration and production company PetroNor that has grown to include Board Chairman Eyas Alhomouz, a U.S. citizen.

Cash App

Cash App breached by former employee; 8.2M affected

2022-04-07T16:26:00+01:00By

Approximately 8.2 million U.S. customers of Cash App Investing have been notified of a data breach carried out by a former employee of the mobile payment service provider.

Ericsson

Ericsson mum on Iraq misconduct amid ‘comprehensive review’

2022-03-23T16:13:00+00:00By

Ericsson has launched a sweeping review into evidence it uncovered regarding misconduct in Iraq and the subsequent disclosure of those findings after the Department of Justice warned the Swedish telecom of a second breach of its 2019 deferred prosecution agreement.

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CPE Webcast: Into the Ethicsverse: Closing cases in hyper speed

2022-03-22T14:00:00+00:00Provided by

If you are not closing a large portion of your issues within the first 30 days, you may be working harder, not smarter. Plus, when cases are open too long, organizations can open themselves up to avoidable regulatory and legal risk.