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Credit Suisse Securities (USA) LLC fined $6.5 million by FINRA

The heart of FINRA’s December 23, 2019 allegations are that Credit Suisse Securities (USA) LLC (CSS) “did not implement reasonably designed surveillances and supervisory procedures to monitor for certain kinds of potentially manipulative activity by its Direct Market Access (DMA) clients.” Apparently, during the relevant timeframe (July of 2010 through July 2014) the allowed trading … Read more Credit Suisse Securities (USA) LLC fined $6.5 million by FINRA

CFTC charges a French national with manipulation

On December 20, 2019 the Commodity Futures Trading Commission (CFTC) charged French national Christophe Rivoire with manipulation of U.S. dollar interest rate basis swaps during June and July of 2012. Mr. Rivoire was the former head of HSBC Holdings Plc’s North American interest rates business working in the Bank’s office in Manhattan. The complaint filed … Read more CFTC charges a French national with manipulation

Tim Leissner and 1Malaysia Development Berhad (1MDB)

On December 16, 2019 the Securities and Exchange Commission (SEC) issued a Cease and Desist Order against Respondent Tim Leissner the former senior executive of Goldman Sachs Group, Inc. (Goldman). The Cease and Desist Order cites three specific bond offerings underwritten by Goldman for the 1 Malaysia Development Berhad (1MBD) fund. 1MDB was created to … Read more Tim Leissner and 1Malaysia Development Berhad (1MDB)

The Walmart FCPA case

In the beginning… The Foreign Corrupt Practices Act (FCPA) was enacted in 1977, applies to companies listed on U.S. stock exchanges and private companies organized under U.S. laws, their shareholders, directors, employees and agents, as well as other individuals who violate the statute while in U.S. territory. The first FCPA case undertaken by the Department … Read more The Walmart FCPA case

A corporate governance fiasco – The We Company aka WeWork

As most of you know we are true believers in appropriate corporate governance. While not the most exciting of topics the cost of getting this wrong can be lethal. Case in point The We Company. I never really understood all the excitement about WeWork. Essentially WeWork was renovating office space and offering “free” beer, amongst … Read more A corporate governance fiasco – The We Company aka WeWork

DOJ Compliance Program Guidance

Earlier this year the Department of Justice (DoJ) issued two publications for prosecuting attorneys to provide guidance on assessing the effectiveness of corporate compliance programs. The two publications (April 2019 and July of 2019) further develop and update the “Evaluation of Corporate Compliance Programs,” issued by the Criminal Division’s Fraud Section released in February 2017 … Read more DOJ Compliance Program Guidance

Federal Energy Regulatory Commission v. Vitol Inc. and Federico Corteggiano – A case study

Overview The FERC v. Vitol/Corteggiano matter is interesting on several different levels and telling from a compliance expectations standpoint. The matter involves the arcane world of congestion revenue rights (CCRs). The allegation made by FERC is that the Vitol trader understood the mathematical models (and the workings of those models) to such an extent that … Read more Federal Energy Regulatory Commission v. Vitol Inc. and Federico Corteggiano – A case study