Posts Tagged With Cases of Interest

Fresenius Medical Care Agrees to Pay $231 Million in Criminal Penalties and Disgorgement to Resolve Foreign Corrupt Practices Act Charges

On March 29, 2019, DOJ officials announced a non-prosecution agreement (“NPA”) with Germany-based Fresenius Medical Care AG & Co. KGaA (“Fresenius”) to resolve a seven-year DOJ and SEC investigation into FCPA violations.  Fresenius admitted to paying bribes to public officials to obtain or retain business, failing to implement reasonable internal accounting controls, and failing to maintain accurate books and records in connection with its activities in several countries in Africa and the Middle East between
Continue Reading

Patrick Ho, Former Head of Organization Backed by Chinese Energy Conglomerate, Sentenced to Three Years in Prison for International Bribery and Money Laundering Offenses

On March 25, 2019, Patrick Ho was sentenced to three years in prison for his role in a scheme to bribe officials of Chad and Uganda.  Ho, the former head of a non governmental organization, admitted to paying the bribes to obtain business advantages for CEFC China Energy Company Limited (“CEFC China”), an international energy and banking conglomerate.  The schemes involved a $2 million bribe to the then-president of Chad to obtain oil rights, as
Continue Reading

Lumber Liquidators Enters into Corporate Resolution for Securities Fraud and Agrees to Pay $33 Million Penalty

On March 12, 2019, Lumber Liquidators Holdings Inc. entered into a deferred prosecution agreement with DOJ and agreed to pay $33 million for filing materially false and misleading statements to investors based on its compliance with formaldehyde regulations.  According to the DPA, in 2014, U.S. flooring suppliers notified the company that its Chinese laminate products were emitting high levels of formaldehyde.  Despite visiting the Chinese laminate supplier and learning that the supplier could not demonstrate
Continue Reading

Mizrahi-Tefahot Bank LTD. Admits Its Employees Helped U.S. Taxpayers Conceal Income and Assets

On March 12, 2019, Mizrahi-Tefahot Bank Ltd. (“Mizrahi-Tefahot”), one of Israel’s largest banks, entered into a deferred prosecution agreement (“DPA”) with DOJ to settle a cross-border tax investigation.  Mizrahi-Tefahot admitted that, from 2002 until 2012, its employees helped U.S. customers evade U.S. taxes by concealing ownership and control of assets at the bank.  As part of the DPA, Mizrahi-Tefahot agreed to pay $195 million, which included restitution to the United States, disgorgement of fees paid
Continue Reading

Former KPMG Executive And Former PCAOB Employee Convicted of Wire Fraud

On March 11, 2019, a jury convicted David Middendorf, the former National Managing Partner for audit quality at KPMG LLP (“KPMG”), and Jeffrey Wada, a former employee of the Public Company Accounting Oversight Board (“PCAOB”), of wire fraud charges in connection with a scheme to use confidential PCAOB materials to improve KPMG’s performance on PCAOB inspections.  At trial, the government asserted that, beginning in fall 2015, Wada—an inspections leader at the PCAOB—began passing confidential information
Continue Reading

Mozambique’s Former Finance Minister Indicted Alongside Other Former Mozambican Officials, Business Executives, and Investment Bankers in Alleged $2 Billion Fraud and Money Laundering Scheme that Victimized U.S. Investors

On March 7, 2019, a four-count indictment was unsealed charging three former senior Mozambican government officials, investment bankers, and business executives in connection with a $2 billion fraud and money laundering scheme.  According to the indictment, between 2013 and 2016 the defendants organized loans made to entities controlled by the Mozambican government.  The defendants allegedly defrauded U.S. investors by misrepresenting the purpose of the loans and the ability of Mozambique and its state-owned entities to
Continue Reading

Mobile TeleSystems PJSC and Its Uzbek Subsidiary Enter into Resolutions of $850 Million with the Department of Justice for Paying Bribes in Uzbekistan

On February 22, 2019, Mobile TeleSystems PJSC (“MTS”), the largest mobile telecommunications company in Russia and an issuer of publicly traded securities in the United States, and its wholly owned Uzbek subsidiary, Kolorit Dizayn Ink LLC (“Kolorit”), entered a deferred prosecution agreement and guilty plea, respectively, to resolve charges based on their roles in a scheme to pay bribes in Uzbekistan.  In total, the entities agreed to pay a penalty of $850 million.

The entities
Continue Reading

Former President and Former Chief Legal Officer of Publicly Traded Fortune 200 Technology Services Company Indicted in Connection with Alleged Multimillion Dollar Foreign Bribery Scheme

On February 14, 2019, a federal grand jury returned an indictment charging two former officers of Cognizant Technology Solutions Corporation (“Cognizant”), a publicly traded Fortune 200 technology services company, in connection with a foreign bribery scheme.  The indictment alleged that, in April 2014, the two officers—the company’s former president and chief legal officer—authorized a $2 million payment to government officials in India to obtain the permit necessary to open a new office campus.  The individuals,
Continue Reading

Chinese Telecommunications Conglomerate, Affiliates, and CFO Indicted in Separate Alleged Fraud Schemes

On January 28, 2019, indictments were unsealed in Seattle and Brooklyn against Chinese telecommunications conglomerate Huawei Technologies Co. Ltd., a number of Huawei affiliates (collectively, “Huawei”), and Huawei’s CFO in connection with two separate alleged fraud schemes.  The indictment in Seattle charged two Huawei affiliates with theft of trade secrets, attempted theft of trade secrets, wire fraud, and obstruction of justice.  According to the indictment, between 2012 and 2014, Huawei undertook concerted, company-wide efforts to
Continue Reading

Two Ukrainian Nationals Indicted in Computer Hacking and Securities Fraud Scheme Targeting U.S. Securities and Exchange Commission

On January 15, 2019, DOJ unsealed indictments charging two Ukrainian individuals with conspiring to hack into the SEC’s computer systems and profit by trading on critical information they stole.  The indictment alleges that, between February 2016 and March 2017, defendants hacked into the SEC’s Electronic Data Gathering, Analysis and Retrieval (EDGAR) system and stole thousands of files, including annual and quarterly earnings reports containing confidential, nonpublic, financial information, which the SEC requires publicly traded companies
Continue Reading

IAV GmbH to Pay $35 Million Criminal Fine in Guilty Plea for Its Role in Emissions Issues

On December 18, 2018, officials announced that Germany-based automotive system maker IAV GmbH  (“IAV”) has agreed to plead guilty to one felony count and pay a $35 million criminal penalty in connection with its role in Volkswagen AG’s (“VW’s”) use of so-called “defeat device” software to improve performance on U.S. emissions tests.  According to court filings, starting in 2006, IAV worked with VW to design, test, and implement this software in VW- and Audi-branded diesel
Continue Reading

Former Head of Organization Backed by Chinese Energy Conglomerate Convicted of International Bribery, Money Laundering Offenses

On December 5, 2018, a federal jury in New York convicted the head of a Hong Kong- and Virginia-based nongovernmental organization on seven criminal counts for his participation in a multi-year, multimillion-dollar scheme to bribe top officials of Chad and Uganda to secure business advantages for a Chinese oil and gas conglomerate.  According to trial evidence and court documents, the defendant, Chi Ping Patrick Ho, was involved in two schemes: offering a $2 million bribe
Continue Reading

Four Defendants Charged in Panama Papers Investigation for Their Roles in Panamanian-Based Global Law Firm’s Decades-Long Scheme to Defraud the United States

On December 4, 2018, four individuals were charged with wire fraud, tax fraud, money laundering, and other counts in connection with a criminal scheme involving Mossack Fonseca & Co. (“Mossack Fonseca”), a Panamanian law firm.  According to the indictment, from 2000 through 2017, the defendants conspired with others to help U.S. taxpayers and clients of Mossack Fonseca to conceal assets from the IRS through fraudulent means.  These individuals allegedly used sham foundations and shell companies
Continue Reading

Venezuelan Billionaire News Network Owner, Former Venezuelan National Treasurer, and Former Owner of Dominican Republic Bank Charged in Money-Laundering Conspiracy Involving over $1 Billion in Bribes

On November 20, 2018, a Venezuelan billionaire who owns the Globovision news network was charged for his alleged role in a billion-dollar currency exchange and money-laundering scheme.  On the same day, a former Venezuelan national treasurer and former owner of Dominican Republic-based Banco Peravia pleaded guilty to charges for their roles in the scheme.  The charges involve a scheme to pay and receive bribes in exchange for the right to conduct foreign exchange transactions on
Continue Reading

MoneyGram International Inc. Agrees to Extend Deferred Prosecution Agreement, Forfeits $125 Million in Settlement with Justice Department and Federal Trade Commission

On November 8, 2018, officials announced that money services business MoneyGram International, Inc. (“MoneyGram”) had breached a 2012 deferred prosecution agreement (“DPA”) with DOJ in relation to its anti-fraud and anti-money laundering (“AML”) programs.  MoneyGram was charged in November 2012 with failing to maintain an effective AML program and aiding and abetting wire fraud, after MoneyGram agents and others engaged in fraud schemes through the company’s payment systems.  At the time, DOJ agreed to defer
Continue Reading

Malaysian Financier and Former Banker Indicted for Conspiring to Launder Billions of Dollars in Illegal Proceeds and to Pay Hundreds of Millions of Dollars in Bribes

On November 1, 2018, an indictment was unsealed charging two individuals with conspiring to violate the FCPA and to launder billions of dollars embezzled from Malaysia’s investment development fund, 1Malaysia Development Berhad (“1MDB”), between approximately 2009 and 2014.  The first individual, known as “Jho Low,” is a Malaysian financier, while the other, known as “Roger Ng,” is a former managing director at a New York-based financial institution (the “Financial Institution”).  On the same day that
Continue Reading

Former Executive Director at Venezuelan State-Owned Oil Company, Petroleos De Venezuela, S.A., Pleads Guilty to Role in Billion-Dollar Money Laundering Conspiracy

On October 31, 2018, a former executive director at the Venezuelan state-owned oil company, Petróleos de Venezuela, S.A. (“PDVSA”), pleaded guilty to one count of conspiracy to commit money laundering for his role in a billion-dollar international scheme to launder funds embezzled from PDVSA.  Abraham Edgardo Ortega, who was PDVSA’s Executive Director of Financial Planning, admitted as part of his plea that in his position with PDVSA, he accepted $5 million in bribes to give
Continue Reading

Traders Plead Guilty to Commodities Fraud and Spoofing Conspiracy

On October 9, 2018, a former precious metals trader at an unnamed United States-based bank (“Bank”) pleaded guilty to charges of commodities fraud and spoofing conspiracy in connection with his participation in deceptive trading activity in the precious metals futures markets.  The defendant, John Edmonds, said that from approximately 2009 through 2015, he conspired with other precious metals traders to manipulate the markets for gold, silver, platinum, and palladium futures.  Edmonds said that he did
Continue Reading

Department of Justice Announces Swiss Bank Program Resolutions

DOJ officials announced criminal resolutions with several Switzerland-based banks and asset managers in the third quarter of 2018, as the IRS’s Offshore Voluntary Disclosure Program for U.S. taxpayers with undeclared assets overseas came to a close on September 28.  In announcing resolutions with NPB Neue Privat Bank AG, Mirelis Holding S.A., Bank Lombard Odier & Co., and Basler Kantonalbank, officials detailed years-long efforts by these firms to attract and retain U.S. clients with a number
Continue Reading

Oil Services CEO and Executive Sentenced to Prison for Roles in Foreign Bribery Scheme

On September 28, 2018, Anthony Mace, a former CEO of SBM Offshore, N.V. (“SBM”), a Dutch oil services company, was sentenced to 36 months in prison and a fine of $150,000.  Robert Zubiate, a former sales and marketing executive for SBM Offshore USA Inc. (“SBM USA”), a U.S.-based subsidiary, was also sentenced to 30 months in prison and a fine of $50,000.  Both Mace and Zubiate pleaded guilty to one count of conspiracy to violate
Continue Reading

Petróleo Brasileiro S.A. – Petrobras Agrees to Pay More Than $850 Million for FCPA Violations

On September 27, 2018, Petróleo Brasileiro S.A. – Petrobras (“Petrobras”), a Brazilian state-owned energy company, entered into a non-prosecution agreement and agreed to pay $853 million to U.S. and Brazilian authorities to resolve an investigation into FCPA violations.  As part of the agreement, Petrobras acknowledged that while its American Depository Shares traded on the New York Stock Exchange, members of the company’s Executive Board (its high-level managers) facilitated millions of dollars in improper payments to
Continue Reading

Operator of Counter-Antivirus Service “Scan4you” Sentenced to 14 Years in Prison

On September 21, 2018, Latvian resident Ruslan Bondars was sentenced to 168 months in prison after a jury convicted him of offenses related to the operation of the counter-antivirus service “Scan4you.”  Authorities characterized Scan4you as providing “essential aid” to hackers, and the service has been linked to several large-scale computer intrusions and data breaches since 2009.  According to evidence at trial, the Scan4you service assisted hackers in determining whether their malware would be detected by
Continue Reading

Financial Advisor Pleads Guilty to Money Laundering Charge in Connection with Bribery Scheme Involving Ecuadorian Officials

On September 11, 2018, Jose Larrea, a Miami-based financial advisor, pleaded guilty to a money laundering conspiracy charge for his involvement in a scheme to bribe officials at Ecuador’s state-owned oil company, PetroEcuador.  Larrea admitted to wiring more than $1 million in funds to conceal the bribes, which an oil services contractor paid to PetroEcuador officials to secure business.  Larrea is the fourth individual to plead guilty in this case.

United States v. Larrea,
Continue Reading

North Korean Regime-Backed Programmer Charged in Conspiracy to Conduct Multiple Cyberattacks and Intrusions

On September 6, 2018, an indictment charged a North Korean citizen, Park Jin Hyok, with one count of conspiracy to commit computer fraud and abuse and one count of conspiracy to commit wire fraud in connection with his alleged involvement in a series of cyberattacks around the world.  According to allegations in the complaint, Park, a computer programmer at the Korea Expo Joint Venture, belongs to a hacking team known as the “Lazarus Group,” which
Continue Reading

LexBlog