Category: Crime

LONDON/ZURICH – A year after the banking crisis that felled Credit Suisse, the authorities are still considering how to fix lenders’ vulnerabilities – including in Switzerland, where the bank’s takeover by rival UBS created a behemoth. The Swiss government-sponsored rescue of Credit Suisse and US bank salvages in March 2023 doused the immediate fires kindled by a run at little-known US regional lender Silicon Valley Bank. But regulators and lawmakers are only starting to address how banks could better withstand…

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 required to maintain an effective trade surveillance program.” The OCC said it found that JPMorgan failed to monitor billions of…

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has announced that a “cyber incident” forced it to take its corporate systems offline as a precaution. FINTRAC is a government agency in Canada that operates as the country’s financial intelligence unit. It is engaged in money laundering investigations, tracking millions of suspicious transactions annually and making thousands of disclosures about illegal money flows to the police. The agency has published a short press statement on its website stating that…

Department of Justice U.S. Attorney’s Office Office of Public Affairs FOR IMMEDIATE RELEASE Thursday, February 29, 2024  United States Also Reaches Settlement with Endo International in Bankruptcy Case Endo Health Solutions Inc. (EHSI), which is in bankruptcy, has agreed to resolve criminal and civil investigations related to the company’s sales and marketing of the opioid drug Opana ER with INTAC (Opana ER), the Justice Department announced today. The United States has also reached an agreement in Endo’s bankruptcy case to…

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 bank acted as an advisor to Blackstone on the transaction. (Reuters)  Blackstone’s investment has been made through insurance accounts managed…

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 in a briefing Thursday. “We have not substantiated any such allegations, though that may well change in the future,” he…

In a significant legal move, authorities in the United States have brought charges against the head of a prominent Japanese criminal organization, accusing him of orchestrating a scheme to traffic nuclear materials from Myanmar, with the intended destination being Iran’s nuclear weapons program. Takeshi Ebisawa, aged 60, stands accused alongside his associate, Somphop Singhasiri, aged 61, of engaging in a range of illicit activities, including drug trafficking, arms smuggling, and the illicit trade of nuclear substances. Anne Milgram, Director of…

JERUSALEM: Israel has imposed financial restrictions on the main UN agency providing aid in the Gaza Strip, a measure which prevented a shipment of food for 1.1 million Palestinians from reaching the war-battered enclave, the agency’s director said Friday. The restrictions deepened a crisis between Israel and UNRWA, whose operations have been threatened following Israeli accusations that some of its workers participated in the October 7 attack that triggered Israel’s war in Gaza. Those accusations have led major donor nations,…

A former CIA software engineer was sentenced to 40 years in prison on Thursday after his convictions for what the government described as the biggest theft of classified information in CIA history and for possession of child sexual abuse images and videos. The bulk of the sentence imposed on Joshua Schulte, 35, in Manhattan federal court came for an embarrassing public release of a trove of CIA secrets by WikiLeaks in 2017. He has been jailed since 2018. “We will…

  In 2023, the Department of Defense announced an ambitious plan to launch 1,000 satellites over the next decade. Over the same period, the National Reconnaissance Office, which runs the country’s spy satellites, plans to quadruple the size of its fleet of a couple dozen satellites.   The U.S. government can expand its fleet this quickly because satellites have become much cheaper to manufacture and easier to launch into space. Many of these new satellites are intended for surveillance, and…

Blackbaud has settled with the Federal Trade Commission after being charged with poor security and reckless data retention practices, leading to a May 2020 ransomware attack and a data breach affecting millions of people. Blackbaud is a U.S.-based company listed on NASDAQ with operations in multiple countries and a provider of cloud-based donor data management software catering to nonprofit organizations, like charities, education organizations, and healthcare agencies. The FTC’s complaint alleges that the company “failed to monitor attempts by hackers…

In a disturbing turn of events, an imprisoned Iranian, Mehdi Mousavian, has initiated a hunger strike to protest the Iranian judiciary’s plan to gouge out his left eye as a retribution for allegedly blinding a policeman during a 2017 protest. Mousavian was sentenced in 2019 to retribution-in-kind, for throwing a stone at the policeman’s eye, a sentence he vehemently denies. The policeman initially demanded an exorbitant 14 billion tomans (approximately $280,000) from Mousavian’s family as compensation. However, unable to afford…

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 investigation by the SEC since 2019 over its handling of block trades (a business that the bank dominates), and the…

Gonzalo Lira, a prominent commentator on the Russia-Ukraine war imprisoned in Ukraine for speech critical of the country’s government, has died after weeks of medical neglect by Ukrainian authorities. Chilean-American war commentator Gonzalo Lira died shortly before noon on January, 11, 2024 at a hospital in Kharkiv, where he had been imprisoned for eight months since he was accused of justifying Russian war efforts in Ukraine. Lira came to prominence in 2022 when he emerged as a critical voice in…

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 regrets these orders” and promised to conduct mandatory training for staff members involved in the investigation. “I fully appreciate the…

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 MAS in a statement on Dec 28. The RMs had provided clients with inaccurate or incomplete post-trade disclosures, resulting in…