Regulatory Enforcement


Dialysis machine

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DOJ orders DaVita to pay $34M over alleged dialysis center kickback scheme

2024-07-19T18:32:00+01:00By

DaVita, a multi-state dialysis provider, agreed to pay more than $34 million to resolve allegations it engaged in numerous kickback schemes to doctors who referred Medicare patients to its dialysis centers, the Department of Justice announced.

Whistleblower vector

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SEC whistleblower to receive $37M award

2024-07-19T16:20:00+01:00By

A whistleblower will be paid $37 million by the Securities and Exchange Commission for providing original, credible information that led to a successful enforcement action.

Hospital bed

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Kindred hospice agrees to pay $19M in multi-state DOJ false claims case

2024-07-18T20:20:00+01:00By

A multi-state hospice home health provider agreed to pay $19.4 million to settle allegations that it paid kickbacks and knowingly billed federal health programs to treat non-terminally ill patients.

DOJ

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DOJ lauds Guardant Health’s cooperation in cancer test false claims case

2024-07-17T20:37:00+01:00By

California-based cancer testing company Guardant Health agreed to pay more than $945,000 to settle allegations levied by the Department of Justice of violating the False Claims Act and Stark Law.

FTX logo

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FTX reaches $4 billion settlement with CFTC in bankruptcy court lawsuit

2024-07-17T15:39:00+01:00By

FTX Trading and the Commodity Futures Trading Commission have agreed on a $4 billion settlement in bankruptcy court to settle the CFTC’s lawsuit against the failed crypto trading platform.

GDPRgavel

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Lithuanian DPA orders Vinted to pay $2.6M over GDPR violations

2024-07-16T17:25:00+01:00By

The data protection authority of Lithuania levied a fine of 2.4 million euros (U.S. $2.6 million) against Vinted UAB, an online clothing trading and exchange platform, for alleged violations of the European Union’s General Data Protection Regulation.

ChinaCargoContainer

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Updated UFLPA enforcement strategy targets aluminum, PVC, seafood imports

2024-07-16T15:08:00+01:00By

U.S. Customs and Border Protection will make it a priority to check shipments of aluminum, polyvinyl chloride, and seafood from China and elsewhere in the region for links to forced labor, according to an updated Uyghur Forced Labor Prevention Act enforcement strategy.

x_web

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European Commission informs X it may be in breach of Digital Services Act

2024-07-15T20:36:00+01:00By

The European Commission informed X, formerly Twitter, that it may be the first company found to be in violation of the European Union’s Digital Services Act in areas “linked to dark patterns, advertising transparency, and data access for researchers.”

Audit

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FRC dings MacIntyre Hudson $156K over public interest entity violations

2024-07-15T16:41:00+01:00By

The U.K.’s Financial Reporting Council fined audit firm MacIntyre Hudson (MHA) and two employees for breaching the agency’s requirements.

marathon_oil_web

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Marathon Oil inks $242M settlement with DOJ, EPA over N. Dakota air pollution

2024-07-12T19:17:00+01:00By

Marathon Oil Company agreed to pay $241.5 million and bring the company into compliance with federal emissions rules in the vicinity of North Dakota’s Fort Berthold Indian Reservation after years of violations, the Department of Justice said.

BitMEX

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DOJ latest agency to charge crypto platform BitMEX for BSA/AML failures

2024-07-12T16:57:00+01:00By

The parent company of crypto-trading platform BitMEX is again facing charges of violating the Bank Secrecy Act, the latest in a string of punishments against the company and its founders for failing to implement adequate know your customer and anti-money laundering programs.

UBS

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FINRA fines UBS unit $850K for failing to properly monitor customer transactions

2024-07-11T19:04:00+01:00By

UBS Financial Services, a subsidiary of the Swiss banking giant UBS, has been fined $850,000 for failing to properly monitor transactions between its broker-dealers and third parties.

insider trading

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Ex-Apple insider trading compliance head fined $1.1M for insider trading

2024-07-11T18:46:00+01:00By

A former Apple attorney who oversaw the company’s compliance with insider trading rules will pay a $1.1 million fine to settle insider trading charges levied by the Securities and Exchange Commission.

Citi

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OCC, Fed fine Citi $136M for repeated risk management, data governance failures

2024-07-11T15:13:00+01:00By

Citigroup will pay $135.6 million in fines levied by two banking regulators for repeated failures to remediate deficiencies in risk management, data governance, and internal controls.

Rite Aid building

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Rite Aid reaches $410M settlement with DOJ in opioid false claims case

2024-07-11T14:40:00+01:00By

Rite Aid agreed to pay $7.5 million and allow the Department of Justice to access nearly $402 million from the company’s forthcoming bankruptcy case to settle allegations it helped fuel the nation’s opioid epidemic.

FCC

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FCC orders Sorenson unit to pay $34.6M over illegal data retention

2024-07-10T15:46:00+01:00By

Sorenson Communications agreed to pay $34.6 million and implement a comprehensive compliance program to settle allegations levied by the Federal Communications Commission that its subsidiary illegally retained call content of users who relied on captions to make and receive calls.

Messaging apps

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FTC proposes $5M penalty for NGL Labs, founders over COPPA violations

2024-07-09T20:26:00+01:00By

The Federal Trade Commission ordered anonymous messaging app creator NGL Labs and its two founders to pay $5 million for unfairly marketed to children and falsely claiming artificial intelligence filtered out bullying messages and threats.

Fifth Third Bank

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CFPB orders Fifth Third Bank to pay $20M over fake accounts, forced auto coverage

2024-07-09T20:04:00+01:00By

Ohio-based Fifth Third Bank will pay $20 million in penalties to the Consumer Financial Protection Bureau for allegedly opening fake bank accounts and wrongfully repossessing customers’ vehicles.

Boeing

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Boeing agrees to plead guilty, pay additional $244M for violating 2021 DPA

2024-07-08T18:41:00+01:00By

Boeing will plead guilty to a felony and pay an additional $243.6 million for violating the terms of a 2021 settlement it made with the Department of Justice related to safety lapses that contributed to the crash of two airplanes.

FTC seal

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FTC orders Vroom to pay $1M after it ‘sped right past compliance’

2024-07-08T14:05:00+01:00By

Vroom, the former online used car dealer, agreed to pay $1 million to settle allegations by the Federal Trade Commission that it didn’t abide by consumer protection laws, including providing prompt refunds.

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Ex-Outcome Health execs sentenced for overbilled ad revenue, misleading auditor

2024-07-02T20:35:00+01:00By

Three former executives of Chicago-based Outcome Health, a healthcare technology company, were sentenced for misleading an auditor, clients, lenders, and investors about a scheme to sell $45 million in overbilled advertisements.

DOJ wall

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DOJ orders Evolution Health to pay $4.5M over alleged kickbacks, false claims

2024-07-02T14:42:00+01:00By

A home health company operating in Indiana, Ohio, and Texas agreed to pay nearly $4.5 million to settle allegations it filed false claims by giving sports tickets and other kickbacks to assisted living facilities in exchange for referrals.

Silvergate_Bank_Web

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Silvergate Bank to pay $63M to Fed, California over BSA/AML deficiencies

2024-07-02T13:50:00+01:00By

Crypto-friendly Silvergate Bank will pay a total of $63 million penalties to California and the Federal Reserve Board to settle charges that its anti-money laundering program failed to properly monitor more than $1 trillion worth of customer transactions.

DOJ

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Tareen Dermatology agrees to pay $1.6M over false claims to Medicare

2024-07-01T21:14:00+01:00By

A Minnesota dermatology practice, its owner, and chief executive agreed to pay $1.6 million to settle allegations, first brought by two whistleblowers, that the company violated the Anti-Kickback Statue by making false claims to Medicare.

Financial Crimes 2024 Managing Nonbanks

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Banks must bolster awareness of fintech partner risks, experts advise at Fordham

2024-07-01T15:44:00+01:00By

During a panel at Compliance Week’s Financial Crimes and Regulatory Compliance Summit, held June 10-11 in New York, experts discussed nuances in bank-financial technology partnerships, offering best practices for how banks should protect themselves.

Supreme Court

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SCOTUS decision upends in-house tribunals in SEC fraud cases

2024-06-28T14:57:00+01:00By

The Supreme Court of the United States ruled that the Securities and Exchange Commission’s practice of using in-house tribunals overseen by an administrative judge to adjudicate securities fraud cases is unconstitutional.

North Korea sanctions

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Mondo TV reaches $538K settlement with OFAC over N. Korea sanctions violations

2024-06-27T16:56:00+01:00By

Italy-based Mondo TV agreed to pay $538,000 to settle charges with the Treasury Department’s Office of Foreign Assets Control over 18 apparent violations of North Korea sanctions regulations.

WIC_2

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Women in Compliance highlights: Mentorship driving DEI; fostering board buy-in

2024-06-27T13:39:00+01:00By

Keeping track of regulations and understanding how they affect your business can be a hot mess without proper organization and collaboration, experts said at Compliance Week’s Women in Compliance Summit, held June 3-4, in Atlanta.

Oil barrels

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DOJ orders PetroChina unit to pay $14.5M over export control violations

2024-06-26T16:26:00+01:00By

PetroChina International America agreed to pay a fine and forfeiture of $14.5 million to settle charges with the Department of Justice that it violated U.S. export control laws.

SEC building

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SEC orders Meta Materials to pay $1M over market manipulation, fraud

2024-06-26T13:54:00+01:00By

A Nevada energy and manufacturing company headquartered in Nova Scotia agreed to pay $1 million to settle charges levied by the Securities and Exchange Commission for alleged market manipulation and fraud, while the agency further investigates its former chief executives.

Child Privacy

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SpongeBob game developer ordered to pay $500K over CCPA, COPPA violations

2024-06-25T19:42:00+01:00By

Popular children’s mobile game developer Tilting Point Media agreed to pay $500,000 to settle allegations the company illegally collected children’s personal data, a violation under the California Consumer Privacy Act and a federal children’s privacy law.

DOJ

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DOJ orders Houston medical centers to pay $15M over concurrent billing false claims

2024-06-25T17:17:00+01:00By

Houston-based medical center institutions agreed to jointly pay $15 million to settle allegations for improperly billing Medicare for concurrent surgeries in violation of teaching physician and informed consent regulations.

FDIC

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Banking regs find flaws in resolution plans for BoA, JPM, Goldman Sachs, Citi

2024-06-25T14:48:00+01:00By

Two federal banking regulators found deficiencies with the sale of derivatives in the resolution plans of Bank of America, Goldman Sachs, and JPMorgan Chase, while the regulators disagreed on the severity of an issue with Citigroup’s plan.

DOJ

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Averhealth to pay $1.3M in DOJ drug test false claims case

2024-06-24T17:24:00+01:00By

National drug testing firm Averhealth agreed to pay $1.3 million to settle allegations, first brought by a whistleblower, that it knowingly submitted false claims to the Michigan Department of Health and Human Services, the Department of Justice announced.

lockheed_martin_web

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DOJ orders Lockheed Martin units to pay $70M for improper subcontracting

2024-06-24T17:01:00+01:00By

Two subsidiaries of aerospace giant Lockheed Martin agreed to pay $70 million to settle allegations levied by the Department of Justice of overcharging the Navy for aircraft parts.

Mexico-China-Money

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OFAC sanctions drug cartel over China procurement; FinCEN issues advisory

2024-06-21T16:37:00+01:00By

The Treasury Department’s Office of Foreign Assets Control and Secretary Janet Yellen announced sanctions Thursday against the top leaders of La Nueva Familia Michoacana drug cartel over the illicit trafficking of synthetic opioid fentanyl in the United States.

Real estate accounting

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CFPB proposes $3.95M fine against Freedom Mortgage over repeated data errors

2024-06-20T17:09:00+01:00By

Freedom Mortgage Corp. would have to pay a $3.95 million fine and carry out regular auditing and testing of its loan data under a proposed order by the Consumer Financial Protection Bureau.

SEC office

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SEC orders R.R. Donnelley to pay $2.1M over cyber-related control violations

2024-06-20T14:45:00+01:00By

A business communications and marketing services company agreed to pay more than $2 million to settle charges levied by the Securities and Exchange Commission over cybersecurity-related control violations.

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Webcast

CPE Webcast: Mastering data governance for regulatory compliance

2024-06-20T14:00:00+01:00Provided by

The world of regulatory compliance is complex and ever-changing. While compliance demands vary by industry and where you have operations, there are underlying similarities to those requirements.

DOJ

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DOJ orders consultants to pay $11.3M total for cyber rule violations

2024-06-18T19:49:00+01:00By

Guidehouse and Nan McKay and Associates will pay a total of $11.3 million to the Department of Justice (DOJ) to settle allegations that cybersecurity failures led to the theft of client personal information during the height of the COVID-19 pandemic.

Credit Suisse

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Credit Suisse unit inks deal with OCC over BSA/AML obligations

2024-06-18T17:36:00+01:00By

The New York branch of Swiss bank Credit Suisse reached a deal with the Treasury Department’s Office of the Comptroller of the Currency (OCC) over compliance with its Bank Secrecy Act and anti-money laundering obligations.

Adobe sign

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FTC sues Adobe alleging hidden subscription cancellation fees

2024-06-17T20:41:00+01:00By

The Federal Trade Commission took aim at Adobe and two executives Monday for making it too difficult for consumers to cancel their subscriptions and often charging a fee to do so.

Trafigura

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CFTC orders Trafigura to pay $55M over fraud, impeding whistleblowers

2024-06-17T20:35:00+01:00By

Singapore-based commodity trading company Trafigura will pay $55 million to the Commodity Futures Trading Commission to settle charges related to fraud, manipulation, and impeding whistleblower communications with the agency.

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Vermont governor vetoes privacy bill, legislature plans override vote

2024-06-17T18:23:00+01:00By

Vermont Republican Gov. Phil Scott vetoed a data privacy bill approved by the state’s Democrat-led legislature, which plans an override vote this week.

DOJ

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Washington state importer ordered to hire CCO in response to Lacey Act violations

2024-06-17T16:53:00+01:00By

A Washington state importer has been ordered by the Department of Justice to pay a $360,000 fine and hire a chief compliance officer after imported wood items the company claimed to be from Malaysia were found to be from China.

SOX_Web

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Ex-Synchronoss CFO fined, banned over SOX violations

2024-06-17T13:52:00+01:00By

The former chief financial officer at Synchronoss Technologies was fined a ban from the industry for widespread Sarbanes-Oxley Act violations.

FinTech

News Brief

Evolve Bank ordered by Fed to address AML, sanctions lapses

2024-06-14T20:37:00+01:00By

The Federal Reserve Board ordered an Arkansas bank that partnered with numerous financial technology companies to correct deficiencies in its anti-money laundering, sanctions, risk management, and consumer compliance programs.

SEC building

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Anson Funds, affiliate to pay $2.25M for fund disclosure violations

2024-06-13T16:54:00+01:00By

Registered investment adviser Anson Funds Management and exempt reporting adviser Anson Advisers will combine to pay more than $2 million for allegedly misleading investors about their short fund strategy and related recordkeeping violations.

AI Law

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Former CEO of AI recruiter Joonko charged with $27M fraud

2024-06-12T22:14:00+01:00By

The former chief executive officer of closed AI recruitment startup Joonko faces up to 40 years in prison and the potential of penalties levied by the Securities and Exchange Commission for allegedly defrauding investors of more than $27 million.

Financial Crimes 2024 Axelrod

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BIS’s Axelrod makes plea to financial services: ‘We want to work with you’

2024-06-12T21:47:00+01:00By

Matthew Axelrod, assistant secretary for export enforcement at the Bureau of Industry and Security, addressed efforts to reach financial services firms, working with the Financial Crimes Enforcement Network, and more during his fireside chat at CW’s Financial Crimes Summit.