Regulatory Enforcement


DOJ

News Brief

Proterial Cable America earns DOJ declination in apparent fraud case

2024-04-16T19:30:00+01:00By

Proterial Cable America received a declination notice from the Department of Justice related to its voluntary self-disclosure and remediation of apparent fraud committed by its employees.

Gurbir Grewal SEC 3x2

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SEC’s Grewal: General compliance principles for avoiding AI washing

2024-04-16T19:09:00+01:00By

Gurbir Grewal, director of the Securities and Exchange Commission’s Division of Enforcement, laid out general principles for “proactive compliance” to avoid making false or misleading claims about the capabilities of artificial intelligence products and services.

Barclays

News Brief

FINRA orders Barclays unit to pay $700K over conflicts of interest

2024-04-15T16:26:00+01:00By

A Barclays unit agreed to pay $700,000 to settle allegations levied by the Financial Industry Regulatory Authority that its research analysts violated conflict-of-interest rules and the firm failed to sufficiently supervise their trades.

SEC building

News Brief

SEC fines five investment advisers in marketing rule sweep

2024-04-12T16:01:00+01:00By

Five registered investment advisers agreed to pay a total of $200,000 in penalties for allegedly violating the Securities and Exchange Commission’s amended marketing rule.

Koenig_DOJ_SEC_Day2

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JBS CECO on overcoming ‘fear, anxiety, and chaos’ of taking job post-FCPA settlements

2024-04-12T14:57:00+01:00By

Mike Koenig explained at Compliance Week’s 2024 National Conference how he helped rebuild JBS Foods’ compliance department following Foreign Corrupt Practices Act settlements with the Department of Justice and Securities and Exchange Commission.

regeneron_web

News Brief

DOJ lawsuit charges Regeneron with inflating Medicare costs

2024-04-11T20:57:00+01:00By

New York-based Regeneron Pharmaceuticals is being sued by the Department of Justice for allegedly flouting Medicare’s price reporting requirements.

Uphill

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CFTC enforcement head talks steep path to self-reporting credit

2024-04-11T20:32:00+01:00By

Earning self-reporting credit from the Commodity Futures Trading Commission is no simple task, Director of Enforcement Ian McGinley conceded.

Treasury Department

News Brief

Treasury proposal seeks to expand CFIUS enforcement authority

2024-04-11T17:50:00+01:00By

A proposal by the Treasury Department would allow the Committee on Foreign Investment in the United States to seek more information as part of its review activities and enable “substantially” larger penalties in instances of noncompliance with relevant regulations.

KPMG

News Brief

KPMG Netherlands fined record $25M by PCAOB for exam cheating

2024-04-10T18:35:00+01:00By

KPMG Netherlands agreed to pay a record $25 million penalty levied by the U.S. Public Company Accounting Oversight Board for allegedly allowing widespread cheating by employees on internal training exams and misinforming regulators about the misconduct.

DOJ building

Premium

What the DOJ’s whistleblower reward program needs to succeed

2024-04-10T16:48:00+01:00By

The Department of Justice is set to join a growing list of U.S. federal agencies to have a whistleblower reward program in place, but how impactful it will be at generating more white-collar investigations and prosecutions rides on its initial design, according to experts.

Grant Thornton

News Brief

Grant Thornton UK dinged $51K for pension fund audit lapses

2024-04-09T17:23:00+01:00By

Grant Thornton UK was assessed a penalty of £40,000 (U.S. $51,000) by the Financial Reporting Council for alleged procedure failures affecting the firm’s audit of a local authority’s pension fund.

SEC office

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SEC official breaks down agency calculus for off-channel comms penalties

2024-04-08T17:35:00+01:00By

Sanjay Wadwha, deputy director of the SEC’s Enforcement Division, discussed the agency’s rationale for issuing widely disparate penalties for off-channel communications recordkeeping violations, as well as violations of its amended marketing rule.

Volkswagen

News Brief

SEC concludes VW emissions case with $48.8M judgment

2024-04-08T17:05:00+01:00By

Volkswagen Group of America Finance was ordered to pay $48.75 million as part of a final judgment obtained by the Securities and Exchange Commission to resolve historical violations related to the automaker’s emissions scandal.

DHS

News Brief

New DHS strategy sets textiles up for added UFLPA scrutiny

2024-04-08T17:05:00+01:00By

The Department of Homeland Security announced a new strategy set to help close a loophole that allows certain textile-related shipments from China to enter the United States without scrutiny under the Uyghur Forced Labor Prevention Act.

California flag

News Brief

CPPA warns of collecting too much data in first enforcement advisory

2024-04-05T19:40:00+01:00By

The California Privacy Protection Agency warned businesses to stop asking for excessive information from consumers who have requested to opt out of having their data collected or who are otherwise exercising their privacy rights under the California Consumer Privacy Act.

New York Supreme Court

News Brief

N.Y. compliance officer charged for embezzling $200K from employer

2024-04-05T15:49:00+01:00By

A New York-based chief counsel and compliance officer was charged for embezzling more than $200,000 from the consulting firm he worked for, the Manhattan District Attorney’s Office announced.

DOJ building

News Brief

​Ex-OneCoin compliance head jailed 4 years for fraud role

2024-04-05T15:04:00+01:00By

The former head of legal and compliance at OneCoin was sentenced to four years in prison after pleading guilty to fraud charges regarding her role in a cryptocurrency marketing scheme.

SEC headquarters

News Brief

Senvest latest rapped by SEC over off-channel comms

2024-04-04T02:48:00+01:00By

Registered investment adviser Senvest Management agreed to pay $6.5 million as part of a settlement with the Securities and Exchange Commission addressing admitted off-channel communications violations and separate code of ethics failures.

CFTC

News Brief

CFTC lauds Australian swap dealer’s cooperation in $500K enforcement

2024-04-04T01:27:00+01:00By

The Commodity Futures Trading Commission ordered an Australian swap dealer to pay $500,000 over admitted supervision failures related to a deficient spoofing surveillance tool.

CW2024 McBride

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Ex-Albemarle CCO shares drivers behind data analytics success at CW2024

2024-04-04T00:41:00+01:00By

Former Albemarle CCO Andrew McBride explained at Compliance Week’s 2024 National Conference how he led the company’s compliance department to remediate the issues that led to apparent FCPA violations and how the team used data analytics to assess risks and implement compliance solutions.

Accounting fraud

News Brief

Ebix: SEC probe into short seller claims closed

2024-04-03T05:04:00+01:00By

Ebix announced the Securities and Exchange Commission closed an investigation into allegations against the software company’s accounting practices raised in a short seller report.

Oilfield

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DOJ commodities trader FCPA sweep offers lessons in cooperation

2024-04-02T13:33:00+01:00By

The value the Department of Justice places on cooperation can be measured by studying penalties and agreements resulting from the agency’s long-running investigation into bribery and corruption by oil traders operating in Latin America and Africa.

Warner Bros

News Brief

​DOJ antitrust scrutiny pushes out 2 WBD board directors

2024-04-02T00:04:00+01:00By

Two directors on the board at media giant Warner Bros. Discovery resigned after the Department of Justice raised antitrust concerns regarding their similar positions on the board of Charter Communications.

China flags

Premium

CBP stats show persistent problem areas under UFLPA

2024-04-01T13:33:00+01:00By and

It’s been nearly two years since the Uyghur Forced Labor Prevention Act took effect, and as enforcement statistics and recent reports demonstrate, many businesses are still not adequately vetting their supply chains.

AI Act

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Need to know: How AI Act sets tone for AI regulation

2024-04-01T13:22:00+01:00By

The European Union’s AI Act follows a risk-based approach: the higher the risk the artificial intelligence poses, the stricter the rules. Understanding each category is key to compliance.

Ericsson

News Brief

Ericsson: Monitor certified anti-corruption program post-FCPA settlement

2024-03-29T18:46:00+00:00By

Swedish telecommunications company Ericsson announced its independent monitor appointed by the Department of Justice certified its compliance program satisfies the requirements ordered by the U.S. agency following its 2019 Foreign Corrupt Practices Act settlement.

PwC building

News Brief

PwC fined $2.75M by PCAOB for independence process breakdowns

2024-03-29T15:39:00+00:00By

Big Four audit firm PwC was assessed a $2.75 million penalty by the Public Company Accounting Oversight Board for failures in its auditor independence processes related to a 2018 engagement.

Hodge_opinion

Opinion

New leadership no easy fix for Irish DPC’s GDPR woes

2024-03-29T13:41:00+00:00By

The Irish Data Protection Commission has a new leadership structure, but it is uncertain whether the changes can get the key privacy regulator caught up on enforcement of the General Data Protection Regulation.

DOJ

News Brief

Gamma Healthcare, owners to pay $13.6M in DOJ false claims case

2024-03-28T21:11:00+00:00By

Missouri-based Gamma Healthcare and three of its owners agreed to pay approximately $13.6 million to settle charges levied by the Department of Justice of violating the False Claims Act by improperly billing Medicare for tests that were not ordered or medically necessary.

Trafigura

News Brief

Trafigura pleads guilty, to pay $127M over FCPA violations in Brazil

2024-03-28T19:53:00+00:00By

Singapore-based commodity trading company Trafigura agreed to pay nearly $127 million as part of a resolution with the Department of Justice addressing violations of the Foreign Corrupt Practices Act in Brazil.

Chemours

News Brief

​Chemours: DOJ, SEC probing exec accounting misconduct

2024-03-28T14:22:00+00:00By

Chemours disclosed it received requests for information from the Department of Justice and Securities and Exchange Commission regarding findings from an internal review into alleged accounting misconduct by several of its top executives.

certa 300x200

Webcast

CPE webcast: Rapid expansion of global forced labor regulations

2024-03-28T14:00:00+00:00Provided by

Join us as we dive into the best practices for performing due diligence across your entire supply chain—from the sourcing of raw materials to the delivery of finished goods—to become (and stay) compliant with this ever-evolving landscape.

Department of Labor

News Brief

DOL orders Tuff Torq to pay $1.8M over child labor violations

2024-03-28T12:22:00+00:00By

The Department of Labor ordered Tennessee-based Tuff Torq Corp. to pay nearly $1.8 million over alleged child labor violations.

Stifel

News Brief

FINRA orders Stifel units to pay $2.3M for repeat compliance failures

2024-03-27T21:55:00+00:00By

Two subsidiaries of Stifel Financial Corp. agreed to pay a collective total of about $2.3 million over alleged violations of Financial Industry Regulatory Authority rules regarding nontraditional exchange-traded products.

Europe technology

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Big Tech practices draw early scrutiny under DSA, DMA

2024-03-27T13:27:00+00:00By

TikTok and X are under investigation related to their respective compliance with the European Union’s Digital Services Act, while the first three companies probed under the Digital Markets Act include Apple, Alphabet, and Meta.

SECcrop

News Brief

Advisor Resource Council to pay $300K over compliance lapses

2024-03-25T20:14:00+00:00By

Advisor Resource Council agreed to pay a $300,000 penalty to resolve charges levied by the Securities and Exchange Commission of compliance failures exacerbated by staffing woes.

UK privacy

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ICO primed for enforcement increase behind new fining guidance?

2024-03-25T13:36:00+00:00By

The Information Commissioner’s Office updated its data protection fining guidance to provide companies with greater transparency and clarity about how and why it would issue penalties for a breach of the U.K. General Data Protection Regulation or Data Protection Act 2018.

SEC building

News Brief

SEC charges attorney over independence violations post-compliance engagement

2024-03-22T20:10:00+00:00By

The Securities and Exchange Commission charged a New York-based attorney for allegedly engaging in improper conduct by violating her obligations to remain independent after preparing an independent compliance report for a company.

adani_web

News Brief

Adani Group on defense over reports of FCPA probe

2024-03-21T18:21:00+00:00By

Indian conglomerate Adani Group said it is aware of an investigation by the U.S. Department of Justice into bribery allegations against a “third party” but denied a relationship with it.

KPMG

News Brief

PCAOB fines KPMG China partners combined $150K over audit violations

2024-03-21T17:50:00+00:00By

The Public Company Accounting Oversight Board imposed collective fines totaling $150,000 against three partners at KPMG China for violations of standards related to their audit work at education service provider Tarena International.

DOJSeal

News Brief

Ex-Stericycle finance director charged for bribery scheme role

2024-03-20T18:17:00+00:00By

A former finance director at medical waste disposal company Stericycle faces Department of Justice charges for his alleged role in a bribery scheme that led the company to an $84 million settlement regarding violations of the Foreign Corrupt Practices Act.

Deutsche Bank

News Brief

Deutsche Bank dinged $54K over IT incident reporting

2024-03-20T15:44:00+00:00By

Deutsche Bank was assessed a penalty of €50,000 (U.S. $54,000) by Germany’s financial supervisory authority for its alleged miscommunication of a 2023 information technology security incident.

FINRA

News Brief

FINRA fines M1 Finance $850K in first influencer promos case

2024-03-19T18:48:00+00:00By

The Financial Industry Regulatory Authority fined Chicago-based financial technology company M1 Finance $850,000 as part of a settlement addressing alleged improper use of a social media influencer program.

SEC

News Brief

Genesis penalized $21M by SEC for sale of unregistered securities

2024-03-19T17:53:00+00:00By

Crypto firm Genesis Global Capital agreed to pay a $21 million civil penalty to the Securities and Exchange Commission to settle charges that the Gemini Earn investment program was an unregistered security offering.

U.S. Bank

News Brief

CFTC dings U.S. Bank, Oppenheimer over off-channel comms violations

2024-03-19T16:19:00+00:00By

The Commodity Futures Trading Commission announced settlements with U.S. Bank and Oppenheimer & Co. for admitted recordkeeping and supervision failures regarding employee use of off-channel communications for conducting business.

SEC headquarters

News Brief

Delphia, Global Predictions fined by SEC in ‘AI washing’ cases

2024-03-18T19:48:00+00:00By

Delphia USA and Global Predictions agreed to pay a total of $400,000 to settle charges by the Securities and Exchange Commission the firms each engaged in artificial intelligence misrepresentations that misled clients about how they were using the technology.

EFG International

News Brief

EFG International settles Cuba, blocked persons U.S. sanctions case

2024-03-14T21:46:00+00:00By

Swiss-based global private banking group EFG International agreed to pay more than $3.7 million as part of a settlement with the Office of Foreign Assets Control addressing apparent violations of U.S. sanctions against Cuba and two blocked individuals.

Health data

News Brief

Change Healthcare facing HHS probe following crippling cyberattack

2024-03-14T19:45:00+00:00By

Change Healthcare, a health payment processor hit by a crippling cyberattack in February, is under investigation by the Department of Health and Human Services’ Office for Civil Rights.

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News Brief

JPMorgan fined $348M by OCC, Fed over trade surveillance lapses

2024-03-14T19:01:00+00:00By

JPMorgan Chase will pay $348.2 million in fines to settle allegations laid by two federal banking regulators that it failed to adequately monitor trading and order activity.

ADM

News Brief

DOJ joins SEC in probing ADM accounting practices

2024-03-13T18:01:00+00:00By

ADM disclosed the Department of Justice joined the Securities and Exchange Commission in probing the food processing company’s accounting practices.