Posts Tagged With Compliance

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Panasonic Avionics Corporation Agrees to Pay $137 Million to Resolve Foreign Corrupt Practices Act Charges

On April 30, 2018, DOJ officials announced that Panasonic Avionics Corp. (“PAC”), a subsidiary of publicly traded Panasonic Corporation (“Panasonic”), agreed to pay a $137 million criminal penalty under a deferred prosecution agreement to resolve FCPA liability.  According to the agreement, PAC caused parent Panasonic to falsify its books and records with respect to improper payments that PAC made to third-party consultants and sales agents, in violation of the FCPA’s accounting provisions.  In addition to
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Residential Home Funding Corp. Settles Civil Mortgage Fraud Suit

On September 28, 2017, acting Manhattan U.S. Attorney settled a mortgage fraud lawsuit against Residential Home Funding Corp. (“Residential Home”) based on their participation in the Federal Housing Administration’s Direct Endorsement Lender Program (“DEL Program”).  Residential Home agreed to pay $1.67 million, based on an ability to pay analysis, and admitted and accepted responsibility for failure to maintain a compliant quality control program and for approving FHA insurance loans that did not meet HUD-established standards. 
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Novo Nordisk Will Pay $58 Million for Non-compliance with FDA-Mandated Risk Program

On September 5, 2017, Novo Nordisk Inc., a pharmaceutical manufacturer and subsidiary of Novo Nordisk U.S. Holdings Inc., itself a subsidiary of Danish Novo Nordisk A/S, agreed to pay $58.65 to settle claims it did not comply with the FDA-mandated Risk Evaluation and Mitigation Strategy (REMS) for the Type II diabetes drug Victoza.  The payment includes $12.15 million in disgorgement for Federal Food, Drug, and Cosmetic Act (“FDCA”) violations, as well as a $46.5 million
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Acting Manhattan U.S. Attorney Announces Settlement of Bank Secrecy Act Suit Against Former Chief Compliance Officer at MoneyGram for Failure To Implement and Maintain an Effective Anti-Money Laundering Program and File Timely SARS

On May 4, 2017, a settlement was reached with Thomas Haider, the former chief compliance officer of MoneyGram International, Inc. (“MoneyGram”).  The settlement resolves claims that Haider violated the Bank Secrecy Act by failing to ensure that MoneyGram had an effective anti-money laundering program and filed timely suspicious activity reports with FinCEN.  As part of the settlement, Haider must pay $250,000 and is prevented from performing a compliance function for any money transmitter for three
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Las Vegas Sands Corporation Agrees to Pay Nearly $7 Million Penalty to Resolve FCPA Charges Related to China and Macao

On January 19, 2017, Las Vegas Sands Corp., a Nevada gaming and resort company, entered a non-prosecution agreement and agreed to pay $6.96 million to resolve alleged FCPA violations in connection with transactions in China and Macao.  According to admissions in the agreement, Sands failed to implement effective internal accounting controls to ensure the legitimacy of payments to a consultant promoting the Sands brand in China and Macao.  Sands also failed to prevent the false
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Justice Department and State Partners Secure Nearly $864 Million Settlement with Moody’s Arising from Conduct in the Lead Up to the Financial Crisis

On January 13, 2017, Moody’s Investors Service, Inc., Moody’s Analytics, Inc., and their parent, Moody’s Corporation, agreed to pay nearly $864 million to settle allegations relating to Moody’s role in providing credit ratings for Residential Mortgage-Backed Securities and Collateralized Debt Obligations.  The settlement resolves an investigation by the Justice Department’s Consumer Protection Branch and the U.S. Attorney’s Office for the District of New Jersey, as well as investigations conducted by 21 states and the District
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Chilean Chemicals and Mining Company Agrees to Pay More Than $15 Million to Resolve FCPA Charges

On January 13, 2017, Sociedad Quimica y Minera de Chile (SQM) entered into a DPA and agreed to pay more than $15 million as a criminal penalty for failure to implement internal controls and falsifying its books and records under the FCPA.  The DPA provides that between 2008 and 2015, SQM made donations to foundations tied to Chilean politicians, including approximately $630,000 to foundations controlled by a Chilean official with influence over the Chilean government’s
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Principal Deputy Associate Attorney General Bill Baer Delivers Remarks at Society of Corporate Compliance and Ethics Conference

On September 27, 2016, Principal Deputy Associate Attorney General Bill Baer delivered remarks at the annual Society of Corporate Compliance and Ethics Conference in Chicago, Illinois.  Baer began by commenting on the importance of compliance departments in “ensuring that companies develop and maintain a culture that values lawful and responsible corporate conduct . . . and identifying possible misconduct at the earliest possible stage and correcting course to minimize damage to the public, to the
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Former New Jersey Attorney General and Chairman of the Port Authority Board of Commissioners Pleads Guilty to Bribery

On July 14, David Samson, the former chairman of the Board of Commissioners of the Port Authority of New York and New Jersey, pled guilty to using his official authority to pressure United Airlines to institute a non-stop flight from Newark to Columbia, South Carolina, for his personal benefit.  Samson, who lived in South Carolina and who served as New Jersey’s Attorney General from 2002 to 2003, sought to have the airline re-introduce the route
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BNP Paribas to Pay Record $8.9 Billion Penalty

On June 30, BNP Paribas pled guilty in the Southern District of New York to conspiring to violate the International Emergency Economic Powers Act and the Trading with the Enemy Act by allegedly processing billions of dollars of transactions through the U.S. financial system on behalf of Sudanese, Iranian, and Cuban entities subject to U.S. economic sanctions.  According to the government, between 2004 and 2012, BNP knowingly moved over $8.8 billion through the U.S. financial
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New Compliance Counsel Expert Retained by the DOJ Fraud Section

On November 3, DOJ announced that it retained Hui Chen as a full-time compliance expert. Ms. Chen most recently worked as Global Head for Anti-Bribery and Corruption at Standard Chartered Bank, Assistant General Counsel at Pfizer, Inc., and Director of Legal Compliance for the Greater China Area at Microsoft Corporation. She also previously served as Trial Attorney at DOJ and as an Assistant U.S. Attorney in the Eastern District of New York. In her new
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Assistant Attorney General Leslie R. Caldwell Speaks at SIFMA Compliance and Legal Society New York Regional Seminar

On November 2, Assistant Attorney General Leslie R. Caldwell emphasized the importance of robust corporate compliance programs when she spoke at a roundtable of compliance professionals.  AAG Caldwell explained that prosecutors consider the strength of a company’s compliance program when deciding whether to bring criminal charges against it, and she provided some guidance about what an effective compliance program looks like.  AAG Caldwell noted that compliance programs could be tailored to the risks faced
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Seven Banks Reach Resolutions Under Justice Department’s Swiss Bank Program

In September and October, a total of 15 banks reached resolutions under DOJ’s Swiss Bank Program.  Since 2013, the Swiss Bank Program has provided a path for Swiss banks to resolve potential criminal liability in the United States.  In exchange for complying with certain requirements, including complete disclosure of possible tax-related criminal offenses in connection with undeclared U.S.-related accounts, the banks entered into NPAs with DOJ.  Under the NPAs, each bank must cooperate in related
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Seven Banks Reach Resolutions under Justice Department’s Swiss Bank Program

In August, a total of seven banks reached resolutions under DOJ’s Swiss Bank Program.  Since 2013, the Swiss Bank Program has provided a path for Swiss banks to resolve potential criminal liability in the United States.  In exchange for complying with certain requirements, including complete disclosure of possible tax-related criminal offenses in connection with undeclared U.S.-related accounts, the banks entered into non-prosecution agreements (“NPAs”) with DOJ.  Under the NPAs, each bank must cooperate in related
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Eleven Banks Reach Resolutions under DOJ’s Swiss Bank Program

In July, a total of eleven banks reached resolutions under DOJ’s Swiss Bank Program.  Since 2013, the Swiss Bank Program has provided a path for Swiss banks to resolve potential criminal liabilities in the United States.  In exchange for complying with certain requirements, including complete disclosure of possible tax-related criminal offenses in connection with undeclared U.S.-related accounts, the banks entered into non-prosecution agreements (“NPAs”) with DOJ.  Under the NPAs, each bank must cooperate in related
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Louis Berger International Resolves Foreign Bribery Charges

On July 17, Louis Berger International, Inc. (“LBI”) agreed to pay a $17.1 million criminal penalty to resolve FCPA charges.  LBI is a New Jersey-based construction management company.  As part of a deferred prosecution agreement (“DPA”), LBI admitted that, from 1998 to 2010, it paid $3.9 million in bribes to foreign officials in India, Indonesia, Vietnam, and Kuwait in order to secure government construction management contracts.  LBI worked through third-party vendors to conceal the bribes. 
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IAP Worldwide Services Inc. Resolves Foreign Corrupt Practices Act Investigation

On June 16, Florida government contracting and defense company IAP Worldwide Services Inc. (“IAP”) entered into a non-prosecution agreement (“NPA”) and agreed to pay a $7.1 million penalty to resolve a government investigation into whether IAP conspired to bribe Kuwaiti officials to secure a government contract.  Michael Rama, former vice president of IAP, also pled guilty to conspiracy to violate the anti-bribery provisions of the FCPA.  In 2004, Kuwait’s Ministry of the Interior initiated the
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Assistant Attorney General Leslie R. Caldwell Delivers Remarks at the New York City Bar Association’s Fourth Annual White Collar Crime Institute

On May 12, Assistant Attorney General Caldwell addressed the Fourth Annual White Collar Crime Institute.  Her remarks focused on DOJ’s expectations with respect to corporate cooperation with government investigations.  Caldwell emphasized that the Principles of Federal Prosecution of Business Organizations (known as the Filip Factors) provide guidance as to DOJ’s expectations with respect to corporate cooperation and noted that DOJ expects corporations to conduct investigations that focus on the problem at issue, determine the
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Vadian Bank AG Reaches Resolution Under Department of Justice Swiss Bank Program

On May 8, Switzerland-based Vadian Bank AG (“Vadian”), reached a resolution with DOJ’s Swiss Bank Program.  Announced in 2013, the Swiss Bank Program allows eligible Swiss banks to resolve potential criminal liability in the United States regarding tax-related offenses for undeclared U.S. accounts.  In the resolution, Vadian agreed to cooperate in criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts, and pay a $4,253,000 penalty, in exchange for
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Ripple Labs Inc. Resolves Criminal Investigation

On May 5, Ripple Labs Inc. (“Ripple”), along with its wholly owned subsidiary XRP II, LLC (“XRP II”), reached a non-prosecution agreement with the U.S. Attorney’s Office in the Northern District of California to resolve a criminal investigation.  Ripple is the developer and seller of XRP, the second most used form of digital currency.  The U.S. Attorney’s Office investigated allegations that Ripple and XRP II failed to comply with laws regulating the exchange of virtual
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Assistant Attorney General Leslie R. Caldwell Delivers Remarks at New York University Law School

On April 14, Assistant Attorney General Caldwell addressed the New York University Center on Administration of Criminal Law’s Seventh Annual Conference on Regulatory Offenses and Criminal Law.  Her remarks focused on parallel criminal and regulatory investigations, and she explained that such parallel proceedings maximize the potential for DOJ to ensure the appropriate resolution.  Caldwell underscored the importance of criminal prosecutions, even when conduct could be pursued civilly or through regulatory action.  She noted that
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DOJ Announces First Bank to Reach Resolution Swiss Bank Program

On March 30, DOJ announced that BSI SA, one of the ten largest private banks in Switzerland, was the first bank to reach a resolution under DOJ’s Swiss Bank Program, agreeing to pay a $211 million penalty.  The program provides a path for Swiss banks that believe they may have committed tax-related criminal offenses in connection with undeclared U.S.-related accounts to resolve potential liability.  In exchange for making a complete disclosure, cooperating in treaty requests,
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Assistant Attorney General Caldwell Discusses Relations Between Anti-Money Laundering Efforts and the Financial System

On March 16, Assistant Attorney General for the Criminal Division Leslie R. Caldwell delivered remarks at the ACAMS Anti-Money Laundering & Financial Crime Conference in Hollywood, Florida.  Caldwell addressed DOJ’s expectations of businesses operating internationally and DOJ’s investigations of international conduct.  As to the former, Caldwell stressed that companies must prioritize cybersecurity and cybersecurity compliance.  She also spoke about the importance of a robust compliance program more generally.  Noting that there is not a “one
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Assistant Attorney General Leslie R. Caldwell Speaks at Treasury Roundtable on Financial Access for Money Service Businesses

On January 13, Leslie R. Caldwell, the Assistant Attorney General for the Criminal Division, spoke about DOJ’s prosecutions of money services businesses.  Ms. Caldwell focused on the prosecutions of MoneyGram and Belair Payroll Services Inc.  Ms. Caldwell said that the keys for financial institutions providing services to money services businesses (and other potentially high-risk clients) are to:  (1) “know your customer”; (2) understand the risks that a particular customer presents; (3) have an AML
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