Category: Prosecutions

Shortcomings in Money Laundering Prevention Lead to €45 Million Fine for J.P. Morgan

Money Laundering, Prosecutions
Germany’s financial watchdog has fined J.P. Morgan €45 million after identifying widespread failures in the bank’s processes for reporting suspicious transactions, according to a notice from the Federal Financial Supervisory Authority (BaFin). The Frankfurt-based institution was found to have “culpably breached” its supervisory obligations related to internal controls designed to detect and report potential money laundering. BaFin said that, between October 4, 2021, and September 30, 2022, the bank systematically failed to submit suspicious transaction reports to the German Financial Intelligence Unit (FIU) without undue delay, a core requirement under Germany’s Money Laundering Act (Geldwäschegesetz). The enforcement action became final…

First Trust Portfolios Fined $10 Million Over Improper Gifts & Misleading Records

Bribery, Prosecutions
First Trust Portfolios has agreed to pay a $10 million fine and accept a censure after the Financial Industry Regulatory Authority (FINRA) found the firm provided lavish gifts and entertainment to broker-dealer representatives in violation of longstanding limits on non-cash compensation tied to investment product sales. The settlement is outlined in a Letter of Acceptance, Waiver and Consent (AWC) that First Trust submitted without admitting or denying the findings. The Illinois-based firm, a wholesale distributor of investment company securities, has been a FINRA member since 1991 and works with hundreds of registered representatives across the country. According to FINRA, from…

UK Jails Crypto Fraud Masters After Record 60,000-Bitcoin Seizure

Digital Currencies, Fraud, Prosecutions
A Chinese national and her accomplice were sentenced Tuesday in London for laundering funds from a massive investment fraud in China, involving more than 128,000 victims and losses of roughly 600 million pounds ($790.6 million), the Crown Prosecution Service said. Zhimin Qian, also known as Yadi Zhang, 47, was sentenced to 11 years and eight months at Southwark Crown Court after pleading guilty to possession and transfer of criminal property, offenses connected to laundering the proceeds of the fraud. Her accomplice, Malaysian national Seng Hok Ling, 47, received a sentence of four years and 11 months for a money laundering…

Peru Jails Ex-President Vizcarra After 14-Years Corruption Sentence

Corruption, Prosecutions
Former Peruvian president Martín Vizcarra was transferred to Lima’s Barbadillo prison on Wednesday evening to begin serving a 14-year sentence, a day after a Peruvian court found him guilty of corruption, state news agency Andina reported Thursday. The court ruled that Vizcarra accepted more than $600,000 in bribes in exchange for granting public works contracts to companies during his tenure as governor of the southern Moquegua region between 2011 and 2014. “It is noted that Martin Vizcarra committed illegal acts by taking advantage of his position as Moquegua region governor, conditioning the bidders to award them the contract in exchange…

Exiled Gabonese First Lady, Son Sentenced in Absentia to 20 Years for Corruption

Corruption, Prosecutions
A Gabonese court on Wednesday sentenced former First Lady Sylvia Bongo and her son Noureddin Bongo Valentin to 20 years in prison for embezzlement, bribery, money laundering, and other corruption-related offenses. Both were tried and sentenced in absentia while living in exile in London. The court also ordered each to pay a fine of 100 million CFA francs (about $177,000). In addition, Noureddin Bongo must pay 1.2 trillion CFA francs (nearly $2.1 billion) in damages, while the two were jointly ordered to pay another 1 trillion CFA francs (more than $1.7 billion) for “moral harm” against the state. The verdict…

Six organised criminal gangsters convicted for large scale money laundering inside DVD cases

Money Laundering, Prosecutions
Six members of an organised criminal gang (OCG) have been convicted for playing key roles in smuggling as much as £430, 925 in cash hidden inside DVDs cases on their way to Dubai.Atif Hussain, 33, Usman Mahmood, 38, and Shafiq Zahid, 47, were convicted today of being part of the money laundering arrangement.On a previous occasion, Asad Saddique, 34, Haroon Iqbal, 38, and Tallat Hussain, 34, pleaded guilty to the same offence.This criminal activity was investigated by the National Crime Agency. The Crown Prosecution Service made the decision to prosecute.The cash was exported to Dubai in airfreight consignments through Birmingham,…

Six people sentenced for part in a £20 million fraud against the taxpayer

Fraud, Prosecutions
Six people have been sentenced for playing a role in a complex £20 million fraud against UK taxpayers.Kashaf Bashier, 43, William Lindfield, 63, Vishal Chudsama, 42, Adeel Karamat Malik, 45, Beverley Thompson, 60, and Sarah Jane Peploe, 54, have been sentenced to 23 months imprisonment, suspended for 12 months; seven years and six months imprisonment; three years and six months imprisonment; 23 months imprisonment suspended for 18 months, 15 days Rehabilitation, 150 hours unpaid work; wo years imprisonment, suspended for 18 months, 10 days Rehabilitation, 100 hours unpaid work; and 21 months imprisonment, suspended for 18 months, 12 days Rehabilitation,…

Canada’s Financial Watchdog Fines Crypto Firm Cryptomus $127 Million for AML Failures

Digital Currencies, Money Laundering, Prosecutions
Canada’s financial intelligence watchdog has handed down its largest-ever penalty, fining Xeltox Enterprises, the company behind the crypto platform Cryptomus, $127 million (C$176,960,190) for repeated violations of anti-money laundering and counter-terrorist financing laws. The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) said the British Columbia–based firm was fined following a compliance examination that uncovered widespread failures to comply with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated regulations. Between July 1 and July 31, 2024, FINTRAC found that Cryptomus failed to submit 1,068 suspicious transaction reports despite having reasonable grounds to suspect links…

Spanish court orders ex-UN official extradited to US in bribery case

Bribery, Prosecutions
MADRID (Reuters) -Spain’s High Court has ordered that former senior U.N. official Vitaly Vanshelboim be extradited to the United States where he is accused of taking bribes and money laundering, according to a court document seen by Reuters on Tuesday. Vanshelboim, a Ukrainian national, served in high-ranking roles within the U.N. Office for Project Services (UNOPS) until he was placed on administrative leave in 2021 and subsequently dismissed in 2023. He was arrested in Spain in March on an international warrant issued by the Southern District Court of New York. Vanshelboim is accused of accepting at least $2 million in…

Peru’s Ex-President Sentenced Amid Sweeping Odebrecht Scandal

Money Laundering, Prosecutions
A Peruvian court on Wednesday handed former President Alejandro Toledo a second prison sentence for money laundering and corruption in a case tied to bribes he received from Brazilian construction giant Odebrecht. Toledo, who led Peru from 2001 to 2006, was sentenced to 13 years and four months for money laundering, the judiciary said on X. It was his second conviction in connection with the sprawling scandal. His latest sentence will not be added to his existing 20-year prison term but will run concurrently at Lima’s Barbadillo Prison, where three other ex-presidents are also jailed. The court found the 79-year-old…

Bolivia: Ex-Interior Minister Arrested Following U.S. Extradition

Money Laundering, Prosecutions
Bolivian authorities arrested former Interior Minister Arturo Murillo on Thursday after his extradition from the United States, where he had been serving a prison sentence for money laundering, the Interior Ministry said. The 61-year-old was taken into custody upon arrival in Santa Cruz. Murillo faces multiple charges in Bolivia, including an eight-year sentence in a 2019 case over the irregular purchase of tear gas from Ecuador, which allegedly cost the state more than $2.3 million. He was first detained in the U.S. in 2021 on accusations of taking bribes from a Florida-based company and was sentenced there to six years in prison in 2023. Article…

Disgraced former Sen. Bob Menendez’s wife gets 4½ years in prison for her role in a bribery scheme

Bribery, Prosecutions
Former U.S. Sen. Bob Menendez’s wife told a judge that her husband was “not the man I thought he was” before she was sentenced Thursday to 4½ years in prison for selling the powerful New Jersey politician’s influence in exchange for bribes of cash, gold bars and a luxury car. U.S. District Judge Sidney H. Stein sentenced Nadine Menendez, 58, after she was convicted in April of colluding from 2018 to 2023 with her husband, the former Democratic chairman of the Senate Foreign Relations Committee, in a variety of corrupt schemes, some involving assisting the Egyptian government. Sobbing as she…

Azerbaijan Jails Ex-Oil Executive for $32M Embezzlement

Fraud, Money Laundering, Prosecutions
An Azerbaijani court has sentenced a former state oil firm executive to 14 years in jail for embezzling 54 million manats ($31.76 million). The Baku Court of Grave Crimes on Monday jailed Ramin Isayev—who served from 2008 to 2020 as the general director of SOCAR AQS, a joint venture of the state oil firm that operates drilling rigs in the Caspian Sea—after finding him guilty of embezzlement, money laundering, abuse of office, and fraud. The court also ordered the confiscation of real estate and large sums of cash belonging to him and his family, according to RFE/RL’s Azerbaijani service. The…

Police Arrest 5 in €100M Cross-Border Cryptocurrency Fraud Case

Fraud, Prosecutions
Police across Europe have arrested five suspects in a cross-border operation coordinated by Eurojust that targeted an online cryptocurrency investment scam that defrauded victims of at least €100 million. The arrests, which included the alleged main organizer, took place during a joint action day that also saw searches carried out and bank accounts and other assets frozen in Spain, Portugal, Italy, Romania and Bulgaria, Eurojust said Wednesday. The suspected organizer is under investigation for large-scale fraud and money laundering. Authorities said the scheme lured investors onto professionally designed platforms that promised high returns from cryptocurrencies. Instead, much of the money…

Criminals stripped of money in record year for compensation

Proceeds of Crime, Prosecutions
Victims of crime have received record compensation from criminal funds as new figures show results of a yearlong crackdown on dirty money.   Asset recovery gives law enforcement the tools to track down and take back assets gained through criminal activity, ensuring offenders cannot benefit from the proceeds of their crimes.  New figures released today (Thursday 11 September) show that almost £50 million taken from criminals was returned to victims, an 165% increase on the previous year and the highest amount in over half a decade.   This comes as law enforcement recovered almost £300 million in criminal assets. It highlights…

Luhansk Ex-Governor Detained in Ukrainian Graft Probe

Corruption, Prosecutions
A Ukrainian anti-corruption court has ordered former Luhansk governor Serhiy Haidai into pre-trial detention over a suspected corruption scheme in military procurement. He may be released on bail of 10 million UAH (about $250,000). The case centers on alleged kickbacks and inflated contracts for drones and electronic warfare systems purchased in 2024 and 2025. Investigators say Haidai conspired with political and business allies to rig the tender process and manipulate forensic reports. The National Anti-Corruption Bureau (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAPO) are leading the investigation. Prosecutors may appeal the court’s ruling. Article Credit: https://www.occrp.org/en/news/luhansk-ex-governor-detained-in-ukrainian-graft-probe

Singapore Tycoon Pleads Guilty in Graft Probe

Corruption, Prosecutions
Singaporean billionaire Ong Beng Seng pleaded guilty Monday to abetting obstruction of justice in a corruption case involving former Transport Minister S. Iswaran. Prosecutors said Ong instructed the Singapore Grand Prix director in May 2023 to retroactively bill Iswaran for a business-class flight from Doha amid an investigation into illicit gifts. The charge is part of a broader probe into Ong’s alleged offer of private jet travel and luxury accommodation to the minister during his time in office. Ong, 79, founder of Hotel Properties Ltd. and a key figure behind Singapore’s Formula 1 night race, was also charged with offering…

Bangladesh Opens Corruption Trial for Sheikh Hasina

Corruption, Prosecutions
Testimony began Monday in three separate corruption trials against Bangladesh’s ousted Prime Minister Sheikh Hasina, her son Sajeeb Wazed Joy, and daughter Saima Wazed Putul, proceedings that prosecutors say could permanently bar the once-dominant political family from public office. The cases, heard at Dhaka’s Special Judge’s Court-5 under Judge Mohammad Abdullah Al Mamun, accuse the defendants of unlawfully allocating government land and other abuses of power. Bangladesh’s state news agency, BSS, reported that the trials are proceeding in absentia, with all 48 defendants—including Hasina and her children—considered fugitives after failing to appear in court. The Anti-Corruption Commission alleges Hasina illegally…

Former CEO of Dutch ‘Jumbo’ Supermarkets Requests Appeal for Bribery Conviction

Bribery, Prosecutions
Frits van Eerd, former CEO of the Dutch supermarket chain Jumbo, has filed an appeal against his two-year prison sentence on charges including money laundering and accepting bribes, according to his lawyer. The Northern Netherlands District Court in the city of Groningen sentenced van Eerd on August 7, noting that authorities had found 427,607 euros ($498,004) of “criminal money” in his home. Van Eerd also took bribes from a co-defendant in the case, the court ruled. “Look, he has always said, ‘I didn’t do this, I wasn’t bribed.’ And, by the way, the co-defendant says he didn’t bribe anyone. So…

Ex-Directors of Abramovich-Linked Firm Indicted in €25M Cyprus Tax Evasion Case

Prosecutions, Tax Evasion
Former directors of a company linked to Roman Abramovich’s superyachts will end up in Cyprus court for criminal offenses related to VAT, officials say. Congo’s Ex-Justice Minister Convicted of Diverting War Victim FundsFormer Justice Minister Constant Mutamba has been convicted of diverting $19 million meant to compensate war crime victims in Kisangani. Druze Families Blame Syrian Forces for Suwayda ExecutionsAmnesty International urges accountability after Druze civilians were executed “in cold blood” in Suwayda, accusing Syrian forces of sectarian crimes that reflect the deadly cost of impunity. Cyprus’ tax commissioner on Friday filed a criminal indictment against former directors of a…

Sri Lanka’s Former President Arrested on Corruption Charges

Corruption, Prosecutions
Former Sri Lankan President Ranil Wickremesinghe has been arrested and remanded on corruption charges, becoming the first head of state in the country’s history to face such a trial. The 76-year-old leader was taken into custody by the Criminal Investigation Department over allegations of misusing public funds during a 2023 trip to the U.K. Authorities say state money covered his travel and security expenses for what they describe as a private visit. Wickremesinghe, who maintains that his wife paid her own way and no public funds were misused, was initially admitted to the Prison Hospital and later transferred to the…

Man who tried to smuggle £1.2m in suitcases out of UK jailed

Money Laundering, Prosecutions
A man who tried to smuggle £1.2m in suitcases out of the United Kingdom to Lebanon has been jailed for 21 months, following a National Crime Agency investigation. Mazen Al Shaar custodyMazen Al Shaar, 48, was stopped by Border Force officers on Saturday 15 March this year as he was about to fly from Terminal Three at Heathrow Airport to Beirut in Lebanon. The supermarket worker, of Marsworth Close, Middlesex, said he only had £500 in cash on him and that he was leaving the UK to visit family. But officers searched his three suitcases and two of them contained…

OFAC Slaps $215 Million Penalty on GVA Capital for Russia Sanctions Violations

Prosecutions, Sanctions
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued a hefty penalty of $215,988,868 against GVA Capital, a San Francisco-based venture capital firm. The firm is being held accountable for knowingly managing investments linked to Suleiman Kerimov, a Russian oligarch already under sanctions, and for failing to respond properly to an OFAC subpoena. This is a case that underscores the immense risks involved when gatekeepers like venture capital firms fail to uphold sanctions compliance. Between April 2018 and May 2021, GVA continued managing investments for Kerimov, after the Russian official had been added to the…

NYDFS Hits Block, Inc. with $40 Million Settlement Over Cash App Compliance Failures

Money Laundering, Prosecutions
Key Takeaways: $40 Million Penalty: Block, Inc. has agreed to pay a $40 million penalty for failing to meet BSA/AML compliance requirements related to Cash App.Independent Monitor: Block must retain an Independent Monitor to oversee the company’s compliance improvements.Investigation Findings: DFS found inadequate customer identification, insufficient risk-based controls, and transaction monitoring issues within Block’s operations.Bitcoin Transactions: The company failed to scrutinize high-risk Bitcoin transactions, creating vulnerabilities for illicit activity.Growth-Related Issues: Cash App’s rapid growth between 2019 and 2020 led to a significant backlog of transaction alerts that were not promptly addressed.Deep Dive The New York Department of Financial Services (NYDFS)…

Canadian Businessman Sentenced for Obstruction of Justice for Hiding and Laundering Millions After His 2020 Money Laundering Conviction

Fraud, Prosecutions
Firoz Patel, 50, of Montreal, Canada, was sentenced to 41 months in federal prison today in connection with his efforts to conceal and launder 450 Bitcoin, currently valued at over $43 million, that he hid from the U.S. District Court handling his 2020 conviction and sentencing for conspiring to operate an unlicensed money transmitting business and to commit money laundering. The sentence was announced by U.S. Attorney Edward R. Martin, Jr., HSI Acting Special Agent in Charge Kai Wah Chan of Homeland Security Investigation’s Washington, D.C., Field Office. Patel plead guilty on September 17, 2024, to one count of obstruction…

EXCLUSIVE: Montenegro Will Extradite Convicted Money Launderer to China

Money Laundering, Prosecutions
Montenegro will extradite a man convicted in one of Asia’s largest-ever money laundering cases to his native country of China, where he is wanted for allegedly running illegal gambling operations. Wang Shuiming has lost his appeal against extradition from Montenegro, a court in the capital of Podgorica told OCCRP’s local member center, MANS. “The defendant’s attorney filed an appeal against the aforementioned decision, which was rejected as unfounded,” said Ivana Vukmirović, a spokesperson for the Podgorica High Court, in an email. Wang Shuiming was arrested in Singapore in August 2023 for his role in a money laundering syndicate that cleaned…

As the Azerbaijani Laundromat scandal reaches German court, will there finally be some accountability?

Money Laundering, Prosecutions
For an autocracy, maintaining a clean reputation is a Sisyphean task. While the international news cycle moves quickly from one scandal to the next, some stains are not easily erased. Silencing members of the opposition, journalists, academics and other independent voices can provide temporary relief. Regimes that imprison or intimidate dissidents effectively kill two birds with one stone: from behind bars or under serious threat, it is much harder to raise awareness or criticise the wrongdoings of public officials, while at the same time there are fewer people left to tell the stories of those who have been imprisoned for…

Block Faces $175 Million CFPB Order Over Fraud Failures, Following $80 Million State-Led Crackdown

Fraud, Prosecutions
In a world where swiping right or transferring money can be done in seconds, trust is the bedrock of our digital lives. For Cash App users, that trust has been shaken—and regulators are stepping in with a forceful reminder that convenience can’t come at the cost of consumer protection. Today, the Consumer Financial Protection Bureau (CFPB) announced a $175 million settlement with Block, Inc., the parent company of Cash App. The headline is grim: $120 million is set aside to refund users burned by fraud and mishandled disputes, with another $55 million going to a victims relief fund. But the…

U.S. Transfers $50M in Forfeited Assets to the Republic of Estonia in Recognition of Assistance in the Danske Bank Prosecution and Forfeiture

Money Laundering, Prosecutions
The Justice Department announced today that it entered into an agreement to share $50 million in forfeited assets with the Republic of Estonia (Estonia) in recognition of Estonia’s assistance in the successful prosecution of Danske Bank and related forfeiture. “Coordinating with our foreign law enforcement counterparts is critical in the fight against complex financial crime — which now, more than ever before, is transnational in nature,” said Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division. “Today’s agreement to share $50 million in forfeited funds with Estonia recognizes Estonia’s valuable contribution to the successful…

McKinsey Africa to Pay $122 Million Over Bribery Scheme Involving South African Officials

Bribery, Prosecutions
McKinsey & Company Africa (Pty) Ltd (McKinsey Africa) will pay $122 million to resolve charges of bribing South African government officials in a years-long scheme. The U.S. Department of Justice (DOJ) announced the settlement as part of a coordinated effort with South African authorities, underscoring the growing international push against corporate corruption. Between 2012 and 2016, McKinsey Africa partnered with South African consulting firms to pay bribes to officials at Transnet and Eskom, the state-owned entities responsible for managing South Africa’s infrastructure and energy. These bribes granted McKinsey Africa access to confidential information, helping the firm secure lucrative consulting contracts.…

Senators Demand Accountability from TD Bank Executives as Insider Arrested for Money Laundering

Money Laundering, Prosecutions
Senators Ron Wyden (D., Ore.) and Elizabeth Warren (D., Mass.) are turning up the heat on TD Bank, demanding answers about what its executives and employees knew regarding a sprawling money-laundering operation. This operation, spearheaded by Da Ying Sze—a Queens-based individual—funneled more than $470 million from drug sales through the bank. The senators’ inquiry, detailed in a letter to TD Bank CEO Bharat Masrani, signals ongoing scrutiny despite October’s record-breaking $3 billion settlement with the Justice Department. The senators’ letter, obtained by The Wall Street Journal and dated Monday, presses TD Bank to disclose internal knowledge and accountability for the…

EBA Finds Gaps in Combating Money Laundering & Terrorist Financing, Despite Significant Progress

Money Laundering, Prosecutions
The European Banking Authority (EBA) has unveiled the results of its fourth and final round of reviews, examining how competent authorities across 30 EU/EEA member states are tackling the ever-present risks of money laundering and terrorist financing (ML/TF) in the banking sector. With this report, the EBA has completed its comprehensive assessment of the authorities responsible for AML/CFT supervision, offering a detailed snapshot of the progress made—and the work that remains. Authorities have come a long way since the first round of reviews in 2018. The EBA’s findings point to meaningful steps taken towards implementing a more risk-based approach to…

AAR CORP. & Former Executive Face $55 Million Penalty Over International Bribery Schemes

Bribery, Prosecutions
AAR CORP., a global aerospace and defense aftermarket solutions company, has agreed to pay over $55 million to resolve U.S. charges related to bribery schemes involving officials in Nepal and South Africa. Between 2015 and 2020, AAR admitted to conspiring to pay bribes to government officials to secure business with state-owned airlines in Nepal and South Africa. In Nepal, the company secured a contract for the sale of two Airbus A330-200 aircraft to Nepal Airlines Corporation by offering and paying bribes through intermediary companies. In South Africa, AAR obtained an aircraft component support contract with South African Airways Technical, a…

Gen Digital’s $55.1M Settlement Closes the Curtain on a Decade-Long Fraud Battle

Fraud, Prosecutions
After ten years of legal wrangling, Gen Digital Inc. — the tech giant once known as Symantec Corp. — has paid $55.1 million to settle a False Claims Act case involving overcharges to the U.S. government. The hefty payout, which includes $16.1 million in damages and $36.8 million in civil penalties, wraps up one of the longest-running procurement fraud battles in recent memory. The saga began with a whistleblower’s claims that Symantec had deliberately fudged its pricing disclosures during negotiations for a lucrative General Services Administration (GSA) contract. Those alleged misrepresentations not only secured higher payments than the government should…

OPINION: It’s not the system, it’s the people – TD Bank scandal through a different lens

Money Laundering, Prosecutions
Stop blaming inferior AML software and arrest the individual responsible for the crime, says former federal agent Robert Mazur. TD Bank and its employees had no idea their crimes would be revealed in May of 2021 when Special Agents of the IRS and DEA arrested Da Ying Sze (AKA David). Six years before his arrest, David had began laundering mountains of cash generated from the sale of drugs, including deadly fentanyl, that killed tens of thousands of residents in the United States. Most of the $653m in currency he cleaned went through the TD Bank laundromat, but six other banks…

Bitcoin Fog Operator Sentenced for Money Laundering Conspiracy

Digital Currencies, Money Laundering, Prosecutions
Operator of Notorious Darknet Cryptocurrency “Mixer” Laundered $400M in Cryptocurrency since 2011A dual Russian-Swedish national was sentenced today to 12 years and six months in prison for his operation of the longest-running bitcoin money laundering service on the darknet. According to court documents and evidence presented at trial, from 2011 through 2021, Roman Sterlingov, 36, was involved in operating Bitcoin Fog, the darknet’s longest-running cryptocurrency “mixer.” Over the course of its decade-long operation, Bitcoin Fog gained notoriety as a go-to money laundering service for criminals seeking to hide their illicit proceeds from law enforcement and processed transactions involving over 1.2…

Telefónica Venezolana to Shell Out $85 Million to Settle U.S. Bribery Probe Amid Venezuelan Currency Scandal

Bribery, Prosecutions
Venezuela’s Telefónica Venezolana—a subsidiary of Spanish telecom giant Telefónica S.A.—has agreed to pay over $85 million to resolve allegations of bribery. The telecom firm admitted to a scheme involving payments to Venezuelan officials to gain preferential access to U.S. dollars through a government currency auction, a critical exchange in a nation with tight foreign currency controls. This DOJ settlement spotlights not only the costs of corporate corruption but also the lengths companies sometimes go to work around challenging market conditions in places like Venezuela. In a deferred prosecution agreement (DPA) filed in New York federal court, Telefónica Venezolana conceded to…

TD Bank Pleads Guilty to $1.8 Billion in Criminal Penalties, Totaling Over $3 Billion in Regulatory & Civil Penalties

Money Laundering, Prosecutions
TD Bank, one of the largest financial institutions in North America, has pleaded guilty to multiple felonies and agreed to pay a staggering $1.8 billion in criminal penalties, in a resolution that also involves civil enforcement actions totaling over $3 billion. This marks the largest penalty ever imposed under the Bank Secrecy Act (BSA) and signals a significant shift in how U.S. regulators are addressing persistent compliance failures in the banking industry. In an unprecedented move, the U.S. Department of Justice (DOJ) applied the Bank Secrecy Act’s daily fine provision—$500,000 per day for violations—making it the first-ever daily fine levied…

Alleged Hong Kong Crypto Swindler Tied to Singapore Money Laundering Syndicate

Digital Currencies, Prosecutions
A Chinese national accused of stealing millions from investors after the collapse of a cryptocurrency exchange also owned companies with businessmen linked to major money laundering investigations in Southeast Asia — including one who has been convicted, and another suspect on the run. Hong Kong police have called Su Weiyi the “mastermind” behind Atom Asset Exchange (AAX), which had more than two million users before collapsing in 2022. Su Weiyi allegedly absconded with investors’ money, but returned to Hong Kong where he was arrested on July 18 and charged with theft. The charges have not been proven in court and…

Raytheon to Pay Over $950 Million in DOJ Settlement for Defective Pricing, Foreign Bribery, & Export Control Violations

Bribery, Prosecutions
Raytheon Company, a defense giant and subsidiary of RTX, has agreed to pay over $950 million to settle criminal and civil investigations by the Department of Justice (DOJ). The hefty settlement addresses the company’s involvement in fraudulent pricing schemes, violations of the Foreign Corrupt Practices Act (FCPA), and breaches of export control regulations under the Arms Export Control Act (AECA). The DOJ has outlined two significant schemes. The first relates to Raytheon’s fraudulent pricing practices on U.S. Department of Defense (DOD) contracts, while the second involves foreign bribery in Qatar and the company’s failure to properly disclose such conduct in…