Category: Financial Crime

‘Panama Papers’ money laundering trial opens

  The trial of 27 people opened Monday in Panama from charges stemming from the Panama Papers, a cache of millions of financial documents that exposed money laundering and worldwide tax evasion networks. Among those on trial are the owners of the Mossack-Fonseca law firm, the company that was central to the 2016 massive document leak, which detailed how the…

Credit Suisse takes fight over $1 billion awarded to billionaire to Singapore’s top court

A unit of defunct lender Credit Suisse will seek to overturn an order to pay US$743 million (S$1 billion) to a billionaire client over the actions of a notorious rogue banker at Singapore’s top court on April 8. The sum was awarded after a lower court earlier ruled that the bank’s trust had failed to safeguard the assets of Bidzina…

Swiss banker gets no prison in ‘Singapore Solution’ tax scam

NEW YORK – An executive at a Swiss holding company did not get prison time for participating in a scheme to help US taxpayers hide more than US$60 million (S$81 million) in assets in a fraudulent arrangement known as the “Singapore Solution”. Daniel Walchli, 56, pleaded guilty in 2023 to a single count of conspiracy to defraud the United States…

US stocks pull back as tech giants hit by EU probe

  NEW YORK – Wall Street stocks retreated March 25 as a market rally showed signs of fatigue and tech heavyweights faced stepped-up regulatory scrutiny in Europe. Maris Ogg of Fiduciary Trust said the reticent start was unsurprising given the relatively light schedule this week as far as economic news. “It certainly wouldn’t be unusual” to have some kind of…

Vividthree affirms chairman Ho Choon Hou’s suitability after his arrest in Cordlife probe

SINGAPORE – Digital content production house Vividthree Holdings in an announcement on March 24 noted the arrest of its board chairman and independent director Ho Choon Hou by the Commercial Affairs Department (CAD) in relation to alleged breaches-of-disclosure obligations by private cord blood bank Cordlife Group. Dr Ho was arrested by the CAD in relation to an offence under the…

China examining PwC role in $105 billion Evergrande fraud case

SHANGHAI – The Chinese authorities are examining the role of PricewaterhouseCoopers in China Evergrande Group’s accounting practices after the developer was accused of a US$78 billion (S$105 billion) fraud, ramping up pressure on the global accounting giant that audited a slew of developers before the sector’s meltdown. The country’s securities regulator this week accused Evergrande’s main onshore subsidiary Hengda Real…

JPMorgan fined almost $350M for issues with trade surveillance program

JPMorgan is facing nearly $350 million in fines from bank regulators due to issues with its trade surveillance program. The Office of the Comptroller of the Currency said Thursday that it was assessing a $250 million civil penalty against JPMorgan Chase Bank because it found that the company “operated with gaps in trading venue coverage and without adequate data controls…

Barclays sells credit card debt to Blackstone: Profiting from Poverty

Barclays (BARC.L), opens new tab has agreed to sell about $1.1 billion of credit card debt in the United States to Blackstone. Banks globally have been making greater use of credit risk transfers to shed risk from loan portfolios, Reuters has reported, with investors sharing the risk of losses. (See Corporate home buyouts: homelessness, mortgage & rent crisis rising) Barclays’ investment…

Pentagon Has Opened Over 50 Criminal Probes on US Aid to Ukraine

The Pentagon’s inspector general said its criminal investigators have opened more than 50 cases related to aid provided to Ukraine, including some involving contractors, but have yet to firm up any allegations. The investigations, which are at different stages, are looking at issues including “procurement fraud, product substitution, theft, fraud or corruption, and diversion,” the inspector general, Robert Storch, said…

Morgan Stanley and exec Pawan Passi avoid criminal misconduct prosecution for the price of $249 million

Morgan Stanley will pay $249 million to settle a criminal investigation, as well as a related Securities and Exchange Commission probe. The SEC said the bank generated more than $100 million in illicit profits as a result of misconduct by Pawan Passi, the bank’s former head of its US equity syndicate desk, and another employee.  Morgan Stanley has been under…

SEC ‘deeply regrets’ its ‘errors and lapses in judgment’ in crypto case

Attorneys for the Securities and Exchange Commission apologized to a judge on Thursday for misrepresenting facts used to secure a restraining order and asset freeze against a crypto firm. In a filing submitted to the U.S. District Court of Utah, in response to the judge’s order to show cause for its misstep, the SEC attorneys wrote that the commission “deeply…

Credit Suisse handed $3.9m penalty by MAS for relationship managers’ misconduct

SINGAPORE – The Monetary Authority of Singapore (MAS) has imposed a $3.9 million civil penalty on Credit Suisse for its failure to prevent or detect misconduct by relationship managers (RMs) in its Singapore branch. Credit Suisse paid the penalty to the regulator immediately after it was imposed, and as part of the settlement, also separately compensated its affected clients, said…

Cardinal, other religious leaders convicted of fraud, embezzlement in landmark Vatican court case: Holy See Vatican funds

A cardinal who oversaw the management of Vatican funds from 2011 to 2018 has been convicted of multiple counts of embezzlement and fraud in a landmark corruption case. Cardinal Giovanni Angelo Becciu, once one of the most powerful figures in the Holy See, was sentenced by the Vatican’s criminal court to five years and six months in jail on Saturday…

Latvia’s ex-central bank chief sentenced to 6 years’ jail for corruption

Latvia’s former central bank governor was sentenced to six years in prison for bribery on Wednesday after a trial over the most prominent of a series of recent financial scandals to hit the Baltic country. Ilmārs Rimšēvičs, head of the Latvian central bank from 2001 until 2019, was found guilty by the Riga district court of accepting bribes and a…

Trends in French White Collar Crime

France’s Sapin II Law was created in 2016 to address corporate corruption and implement antibribery measures. The legislation took effect in 2017, marking a significant shift in the country’s regulatory compliance landscape. The law, which tracks closely with similar laws in the US, UK, and other EU countries, requires large companies [1] to implement a robust compliance program, including anti-corruption…

Verdicts imminent in Vatican corruption trial with star defendant: Cardinal Angelo Becciu

Verdicts are expected Saturday for a cardinal and nine other defendants in the most complicated financial trial in the Vatican’s modern history: a case featuring a Hollywood-worthy cast of characters, unseemly revelations about the Holy See and questions about Pope Francis’s own role in the deals. After 2½ years of hearings, here’s a brief snapshot of the trial and its…