Legg Mason a publicly traded American investment management firm will pay $34.5 million to settle charges that its Permal Group hedge fund business bribed Libyan officials to win investment contracts, the Securities and Exchange Commission announced Monday.
The settlement is like one announced June 4 by the U.S. Justice Department, with Legg Mason agreeing...
Continue reading…
Category: Fraud
SEC charges Citigroup for failure of internal controls on fraudulent loans resulting in $475 million in losses
The SEC has charged Citigroup for its inadequate controls that failed to detect "fraudulently-induced" loans made by a Mexican subsidiary. The failure ultimately resulted in $475 million of losses reported by Citigroup. The fraud occurred in a program where Citigroup's wholly-owned subsidiary Banamex, S.A. de C.V. (Banamex) loaned $3.3 billion to Oceanografia,...
Continue reading…
Royal Bank of Scotland pays U.S. record $4.9 Billion to settle charges of risky residential mortgage frauds
The Royal Bank of Scotland will pay a $4.9 billion settlement to end the federal civil claims that RBS misled investors in the underwriting and issuing of residential mortgage-backed securities (RMBS) between 2005 and 2008. It is the largest penalty under the Financial Institutions Reform, Recovery, and Enforcement Act...
Continue reading…
Former Minister of Barbados criminally charged in United States for laundering bribes
Donville Innis a former minister in the government of Barbados has been criminally charged in the United States with laundering bribes he received from a Barbadian insurance company, federal prosecutors said on Monday. Inniss formerly served...
Continue reading…
AstraZeneca pays $110 million to Texas to settle whistleblower charges of false marketing of antispychotic Seroquel and statin Crestor
Pharmaceutical company AstraZeneca will pay $110 million to the state of Texas to settle lawsuits alleging that the company falsely and misleadingly marketed two of its drugs in violation of the Texas Medicaid Fraud Prevention Act. AstraZeneca was accused of engaging in false and misleading marketing schemes at a time when the company was...
Continue reading…
Cryptocurrency Bitcoin company owner faces up to 20 years in prison for fraud
Jon E. Montroll from Saginaw, Texas is facing up to 20 years in prison for stealing thousands of Bitcoins from customer funds, running an unregistered securities exchange, and lying to US security regulators after his cryptocurrency exchange, BitFunder, was hacked, says Bloomberg news. Montroll pleaded guilty to securities fraud and obstruction of justice before...
Continue reading…
Defective Body Armor Company CEO Settles for $1.2 Million Under False Claims Act
The founder and former president of Second Chance Body Armor, Richard Davis, has agreed to settle with the government after a sale of defective bullet proof vests that lead to life-threatening situations. The vests were purchased for federal, state, local and tribal law enforcement agencies. Under the False Claims Act, Davis will have to...
Continue reading…
CEO of large nursing home chain sentenced to 4.5 years in prison for fraud kickback scheme
Daniel Benson, the former chief operating officer of a large nursing home chain was sentenced Friday to 4 1/2 years in prison for his role in a lucrative fraud scheme. He had earlier reached a plea deal in a case in which he and three other...
Continue reading…
Customs broker fakes documents for cigar importers and admits mail fraud
A customs broker used cigars to run a $500,000 fraud. Customs brokers are supposed to help importers to make sure they pay the right amount of tariffs on imports and that the paperwork is correct. Alberto Rodriguez, 65, has admitted to the fraudulent scheme. The Court is deciding how much time he will spend...
Continue reading…
DOJ obtains $1 Billion settlement from Bank admitting to $90 million in bribes to Gaddafi-era libyan officials and LIBOR manipulation
Office of Public Affairs
Société Générale S.A. (Société Générale), a global financial services institution Société Générale S.A. (Société Générale), and its wholly-owned subsidiary, here have agreed to pay a combined total penalty of more than $860 million to settle charges by U.S. authorities with criminal authorities concerning a multi-year scheme...
Continue reading…
