Regulatory Enforcement


ExxonMobil

Will ExxonMobil’s victory in sanctions case mean more pushback?

2020-01-17T18:01:00+00:00By

ExxonMobil’s victory in a sanctions case before a federal court just might empower others in the regulated community to challenge the imposition of fines for alleged violations of sanctions regulations.

Jackson

Heartbreaker: SEC Commissioner Jackson to resign Feb. 14

2020-01-16T19:44:00+00:00By

Robert Jackson Jr., one of five commissioners at the Securities and Exchange Commission, confirmed Thursday his intention to resign from his post next month.

KPMG

SEC bars former KPMG leader atop ‘chain of corruption’

2020-01-15T20:06:00+00:00By

The Securities and Exchange Commission has suspended a former KPMG leader from appearing or practicing before the SEC after he was convicted of a felony last year.

SprayEuros

Germany hits pesticides wholesalers with large fines

2020-01-14T18:35:00+00:00By

Seven pesticide wholesalers have been fined a total of €155 million (U.S. $173 million) for operating a 17-year price-fixing cartel.

USIranChess

OFAC designates new sanctions against Iran’s metals industry

2020-01-13T17:24:00+00:00By

Sanctions compliance officers should be on alert following several new sanctions designated by the Office of Foreign Assets Control against Iran’s largest steel, aluminum, copper, and iron manufacturers.

ClaytonTop

A modern, corporate-friendly SEC glides into 2020

2020-01-09T13:36:00+00:00By

There are a few clouds on the horizon as some on Capitol Hill wonder whether a purported concern for the “Main Street investor” is cloaking a deregulation initiative.

NeedsImprovement

FRC calls for better reporting to improve trust

2020-01-09T13:01:00+00:00By

U.K. regulator the Financial Reporting Council’s annual review shows many of Britain’s largest companies use a “tick-box” approach to compliance with the U.K. Corporate Governance Code—often providing scant explanations and little detail.

JusticeDepartment

DOJ enforcement priorities for 2020 include antitrust

2020-01-08T13:01:00+00:00By

Compliance officers need to step it up in 2020; a world of heightened risk means a world of heightened regulatory oversight.

SECcrop

SEC’s 2020 priorities can be gleaned from 2019 trends

2020-01-08T13:01:00+00:00By

Companies would be wise to study the SEC’s annual enforcement report and avoid becoming one of the ever-increasing number of enforcement actions the Commission doles out yearly for misconduct.

Uber

Uber: Fraud Section ends bribery probe

2020-01-06T19:03:00+00:00By

The Department of Justice has closed its investigation into possible violations of the Foreign Corrupt Practices Act by ride-sharing company Uber.

StockManipulation

Swiss firm, owner face charges in stock manipulation scheme

2020-01-03T18:31:00+00:00By

The SEC and DOJ have separately announced charges against a Swiss asset management firm and several individuals for engaging in a long-running stock manipulation scheme involving numerous U.S. issuers. The charges resulted from a failed attempt to circumvent disclosure requirements imposed by securities laws.

HiddenMoney

UBP to pay additional $14M for hidden accounts

2020-01-03T17:48:00+00:00By

Union Bancaire Privée (UBP), a Swiss private bank, must pay an additional $14 million to the U.S. government for accounts it failed to disclose in an addendum to a non-prosecution agreement reached with the Department of Justice four years ago.

Gavel

Exxon wins legal battle with OFAC over sanctions violation

2020-01-03T17:23:00+00:00By

A federal judge ruled this week Exxon will not have to pay a $2 million civil penalty levied by OFAC in 2017 for violating Ukraine-related sanctions regulations.

SFC

Hong Kong’s SFC fines RHB Securities Hong Kong $6.4M

2020-01-02T15:21:00+00:00By

Hong Kong’s Securities and Futures Commission has fined RHB Securities Hong Kong $6.4 million for failing to comply with regulatory requirements on conflicts of interest and supervision of account executives.

Timeline

Compliance 2020: A timeline

2020-01-02T14:03:00+00:00By Compliance Week

Compliance Week looks back at two decades of scandals, enforcement actions, and regulatory policies (2000-2019) that shaped the compliance function we see today.

columnist icons

Top ethics and compliance failures of 2019

2019-12-27T17:13:00+00:00By

From antitrust and privacy concerns in the tech world to compliance officer liability in the pharmaceutical industry to unethical practices in the banking and accounting professions, more than a dozen companies made Compliance Week’s list of the biggest compliance fails in 2019.

Money

Sutter agrees to pay $575M, gets compliance monitor in antitrust settlement

2019-12-23T22:23:00+00:00By

California announced a settlement with Sutter Health for $575 million to settle claims of anti-competitive behavior brought by the state attorney general as well as a class-action group that included employers and unions.

Whistle

CFTC awards more than $1M to internal compliance whistleblower

2019-12-23T20:10:00+00:00By

The CFTC announced a whistleblower award north of $1 million for a tipster who went through internal compliance at his or her company to get the information to regulators.

Microphone

SEC cites ‘inadequate’ compliance in fraud charges against radio host

2019-12-23T19:53:00+00:00By

The Securities and Exchange Commission has charged Sacramento, Calif.-based radio host Keith Springer and his company with defrauding hundreds of retail clients. The SEC specifically singled out failures in Springer’s compliance program in its complaint.

columnist icons - kyle

Most-trafficked content tells story of the compliance officer

2019-12-23T15:35:00+00:00By

Changes in the interests of our audience over the last several years help us to understand how much compliance officers must evolve in their jobs to meet the demands of a given time.

SFO building

SFO confirms DPA with Güralp Systems after three acquitted

2019-12-23T15:30:00+00:00By

The founder and two former employees of Güralp Systems were acquitted of charges they conspired to bribe a South Korean public official, making it the latest corruption case in which the U.K. Serious Fraud Office failed to secure individual convictions.

MoneyFine

MetLife to pay $10M for ‘longstanding’ accounting errors

2019-12-20T14:08:00+00:00By

MetLife will pay a civil penalty of $10 million to resolve charges the insurance company violated the books and records and internal accounting controls provisions of federal securities laws.

David Lefort

Companies deserve a break on rushed CCPA compliance

2019-12-19T16:47:00+00:00By

The CCPA has been rushed from the start, says CW Editor in Chief Dave Lefort, who believes the California attorney general’s plan to give leniency for companies making good-faith efforts is the right call.

CVS

Alleged compliance failures at Omnicare lead to healthcare fraud lawsuit

2019-12-19T16:25:00+00:00By

A series of alleged compliance failures at pharmaceutical services provider Omnicare has resulted in the Department of Justice intervening in yet another civil healthcare fraud lawsuit against the company.

FTC

FTC appoints new antitrust head

2019-12-18T20:26:00+00:00By

The Federal Trade Commission announced the appointment of Ian Conner as director of the Bureau of Competition. In addition, Daniel Francis was named deputy director at the Bureau.

GoldmanFeature

SEC bars former Goldman Sachs director over 1MDB scandal

2019-12-17T15:50:00+00:00By

Former Goldman Sachs Group executive Tim Leissner has settled charges brought by the SEC for alleged violations of the Foreign Corrupt Practices Act. His settlement includes a permanent bar from the securities industry.

JusticeDepartment

DOJ revises export control and sanctions enforcement policy

2019-12-16T20:12:00+00:00By

The Department of Justice has revised its policy regarding voluntary disclosures of export control and sanctions violations.

Accounting fraud

SFO charges two former Serco directors with fraud, false accounting

2019-12-16T17:01:00+00:00By

The U.K. Serious Fraud Office has charged two individuals with fraud and false accounting concerning Serco’s electronic monitoring contract with the Ministry of Justice.

Columnist_Hodge

WADA mess: Sports regulator’s light touch sends bad compliance message

2019-12-13T15:55:00+00:00By

One of sports’ key enforcement agencies handed out a penalty this week that sent a message no regulator wants to send: Punitive action may only come after the guilty party has already reaped the rewards.

MarketManipulation

Morgan Stanley fined $22.2M for manipulating bond prices

2019-12-11T16:24:00+00:00By

France’s financial market regulator has fined Morgan Stanley €20 million (U.S. $22.2 million) for manipulating the price of French and Belgian government bonds in June 2015.

ADR

Jefferies to pay $4M for improper handling of ADRs

2019-12-09T18:54:00+00:00By

Broker-dealer Jefferies will pay $4 million to settle charges for the improper handling of “pre-released” American Depositary Receipts (ADRs), the Securities and Exchange Commission announced.

FCPA-July

Ericsson finalizes $1B FCPA settlement

2019-12-09T16:14:00+00:00By

Swedish telecom giant Ericsson has entered a $1 billion settlement with U.S. authorities to resolve a long-running investigation into violations of the FCPA that spanned 17 years and several geographies and involved high-level executives.

ArrowsUp

Study: Spike in OFAC sanctions pose compliance challenges

2019-12-06T20:04:00+00:00By

Some companies might scramble to comply with more—and sometimes quickly shifting—sanctions requirements as the U.S. government chalks up record enforcement levels.

Truckstock

Celadon execs charged with accounting fraud

2019-12-06T18:30:00+00:00By

Two former top executives of trucking company Celadon Group face civil and criminal charges for their participation in an accounting fraud scheme that inflated the company’s income and earnings per share.

Accounting fraud

Iconix, three former execs charged with accounting fraud

2019-12-06T17:02:00+00:00By

Iconix Brand Group and three of its former top executives were charged by the SEC for engaging in accounting fraud. Iconix and two of the executives agreed to settle, with litigation still pending against the company’s former CEO.

EUUSPrivacyShield

FTC settles with four over alleged EU-U.S. Privacy Shield deception

2019-12-05T19:48:00+00:00By

Four companies have reached settlements with the Federal Trade Commission for allegedly misrepresenting their participation in the EU-U.S. Privacy Shield framework.

BumblebeeMoney

Former Bumble Bee CEO convicted in price-fixing scheme

2019-12-05T17:19:00+00:00By

The former president and CEO of packaged seafood company Bumble Bee was convicted for his participation in an antitrust conspiracy to fix prices of canned tuna, the Justice Department announced.

Liberty Tax

Compliance called out in Liberty Tax DOJ settlement

2019-12-04T20:58:00+00:00By

The Department of Justice is requiring Liberty Tax Service to greatly enhance its internal compliance controls as part of a proposed settlement with the tax preparation service provider over allegations of fraud and misconduct.

SEC

SEC names new cyber chief

2019-12-03T17:31:00+00:00By

The Securities and Exchange Commission announced the appointment of Kristina Littman as chief of the Division of Enforcement’s Cyber Unit.

Vestager-Margrethe

Vestager once again takes aim at digital giants

2019-12-02T18:24:00+00:00By

Margrethe Vestager, European commissioner for competition, once again rallied against Big Tech in a Nov. 29 speech. The politician has promised more oversight of search engines, online marketplaces, social media networks, and app sites to ensure fair markets.

KPMG

SEC bars former PCAOB leader for role in KPMG scandal

2019-12-02T15:22:00+00:00By

The Securities and Exchange Commission has barred Cynthia Holder from practicing as an accountant before the Commission for her role in the long-running KPMG inspections scandal.

/web/img/field/image/sec_0.jpg

SEC charges MiMedx Group with accounting fraud

2019-11-27T15:23:00+00:00By

Biotech company MiMedx Group and three of its former top executives have been charged with defrauding investors. In response, MiMedx reshuffled its management team, including the appointment of a new general counsel and secretary.

Shush

PRA fines Citigroup for regulatory disclosure failure

2019-11-26T20:43:00+00:00By

The Bank of England has hit Citigroup with a record £44 million (U.S. $56.5 million) fine after it found three of its U.K. units failed to submit complete and accurate regulatory information about the lender’s capital and liquidity levels.

Uber London

Uber stripped of London license for ‘pattern of failures’

2019-11-26T18:53:00+00:00By

Uber has been stripped of its London operating license after the city’s transportation regulator identified a “pattern of failures” by the company, including several safety breaches that placed passengers at risk. It is appealing the ruling.

Apple

OFAC: Apple shows ‘reckless disregard’ for sanctions in ‘non-egregious’ violation

2019-11-26T17:11:00+00:00By

The Treasury Department’s Office of Foreign Assets Control had harsh words for Apple’s sanctions compliance program in announcing a not-so-hefty $466,912 settlement with the technology giant.

Documents

BGC Financial to pay $3M for supervisory failures

2019-11-25T21:41:00+00:00By

BGC Financial was accused of various supervision, reporting, and recordkeeping violations that went on for more than five years in a $3 million enforcement action from the CFTC.

Campaign money

Dannenbaum Engineering overhauls compliance; fined $1.6M for campaign contributions

2019-11-25T21:04:00+00:00By

Dannenbaum Engineering and its parent company have agreed to pay a $1.6 million criminal fine for a scheme involving illegal campaign contributions. While the fine might not be significant, the compliance lessons are.

Shipping

Samsung Heavy Industries to pay $75M in foreign bribery case

2019-11-25T20:21:00+00:00By

Samsung Heavy Industries will pay total criminal penalties of $75.5 million to enforcement authorities in the United States and Brazil to resolve violations arising out of a bribery scheme in Brazil.

Revise

Corporate Enforcement Policy revisions impact FCPA disclosure

2019-11-25T15:02:00+00:00By

The Department of Justice this month made a few minor adjustments to its Corporate Enforcement Policy that are worth a closer look, as these changes could impact when compliance officers and corporate counsel decide to self-report a potential Foreign Corrupt Practices Act violation.

UBScrop

Hong Kong, Singapore regulators fine UBS $59M for client overcharges

2019-11-20T20:14:00+00:00By

Swiss bank UBS will pay $59 million in total civil penalties in resolutions with both Hong Kong and Swiss regulators for overcharging clients for over a decade.