Overview At issue are three terms, equitable relief, disgorgement, and penalty. If one were to not burden oneself with defining terms and their context, the U.S. Supreme Court decided to allow the Securities and Exchange Commission (SEC) to seek disgorgement as a remedy in their civil actions under an equitable relief construct. However, the calculation … Read more U.S. Supreme Court upholds SEC’s ability to use disgorgement, but with modifications.
Overview On June 17, 2020, despite having found no incidences of a “financial crime” Britain’s Financial Conduct Authority (FCA) fined Commerzbank AG, London Branch £37,805,400 (~$46,684,640) for inadequate controls and procedures related to the bank’s financial crime control framework. The fine is to be paid no later than July 1, 2020. From the FCA’s 50-page … Read more Britain’s Financial Conduct Authority fines Commerzbank AG, London Branch £37,805,400 (~$46,684,640).
Civil Monetary Penalty Guidance On May 28, 2020 James McDonald, Director of Enforcement at the Commodity Futures Trading Commission (CFTC) gave a speech at the Futures Industry Association addressing the issues of penalties and penalty guidance, following up on a memo to staff (see here). This marked the first time in 25 years the CFTC … Read more The Commodity Futures Trading Commission updates its Enforcement Manual
As crypto currencies become more prevalent people are starting to figure out that crypto currencies do not necessarily provide anonymity. Case in point Maksim Boiko a.k.a. “Gangass”. On March 27, 2020 the Department of Justice unsealed an affidavit for a criminal complaint and arrest warrant against Mr. Boiko alleging conspiracy to commit money laundering. In … Read more Bitcoin and how not to be anonymous
Overview On March 4, 2020 issued a settlement agreement with U.S. Bank’s former Chief Operational Risk Officer Michael LaFontaine whereby FinCen fined Mr. LaFontaine $450,000 and banned him from a compliance role for six years. The settlement agreements state the reason for the actions is due to “his failure to prevent violations of the Bank … Read more FinCen accesses a civil penalty of $450,000 against a former risk officer
Overview On February 20, 2020 the United States Attorney’s Offices of Central District of California and the Western District of North Carolina announced a settlement with Wells Fargo & Company that included a $3 billion dollar fine. Interestingly, the two criminal statutes cited were 18 U.S.C. 1005 and 1028A. 18 U.S.C. 1005 comes under Chapter … Read more The Wells Fargo Settlement – a new twist on identity theft
OverviewThe Department of Justice unsealed a 35-page indictment filed in February of 2015 against three individuals who were executives at Alstom S.A. (Alstom) and Marubeni Corporation (Marubeni) this week. Alstom is a French power and transportation company. Marubeni is a Japanese based trading company. The three individuals named were Junji Kusiinoki of Marubeni and Reza … Read more Holding individuals accountable
Overview Ten years after the passing of the Wall Street Accountability Act a.k.a. Dodd Frank the Commodity Futures Trading Commission (CFTC) held a public meeting yesterday to bring forth the fifth attempt at proposing a position limit rule. Over the last 10 years the CFTC has attempted four position limit proposals. In 2011 one proposal … Read more New Position Limit Proposal
On January 23, 2020 the Office of the Comptroller of the Currency (OCC) announced settlements with fiver former executives of Wells Fargo bank. More than four years ago it was discovered that Wells Fargo engaged in a pattern and practice of systemic sales practice violations occurring between 2002 – 2016. The announcement by the OCC … Read more The Office of the Comptroller of the Currency settles with five former Wells Fargo executives.