Category: _enforcement

Credit Suisse Group AG and UBS Group AG are among the banks under scrutiny in a US Justice Department probe into whether financial professionals helped Russian oligarchs evade sanctions, according to people familiar with the matter.

The Swiss banks were included in a recent wave of subpoenas sent out by the US government, the people said. The information requests were sent before the crisis that engulfed Credit Suisse and resulted in UBS’s proposed takeover of its rival.

Subpoenas also went to employees of some major US banks, two people with knowledge of the inquiries, said.

The Justice Department inquiries are focused on identifying which bank employees dealt with sanctioned clients and how those clients were vetted over the past several years.

The United States said Tuesday it is imposing a new round of sanctions on Iranian firms and people accused of procuring equipment used for Iranian drones.

Treasury’s Office of Foreign Assets Control coordinated with the FBI to designate four firms and three people in Iran and Turkey for allegedly buying equipment, including European-made engines, to be used for Iran’s drone and weapons programs.

Those targeted for sanctions include the Iran-based Defense Technology and Science Research Center, its procurement firm Farazan Industrial Engineering Inc. and two other firms along with purchasing agents from the companies.

Today, the Department of Justice, on behalf of the Environmental Protection Agency (EPA), filed a motion for preliminary injunction under the Clean Air Act (CAA) requesting that the court order Denka Performance Elastomer LLC (Denka) to require significant pollution controls to reduce chloroprene emissions, a pollutant that EPA has determined to be a likely carcinogen. The request for immediate relief by EPA and the Justice Department follows the United States’ complaint filed on Feb. 28, alleging an imminent and substantial endangerment to the communities surrounding the facility as a result of Denka’s manufacturing operations.

The Clean Air Act section 303 imminent and substantial endangerment lawsuit is currently pending in the U.S. District Court for the Eastern District of Louisiana.

German and US authorities, supported by Europol, have targeted ChipMixer, a cryptocurrency mixer used to keep crypto transactions private. The investigation was also supported by Belgium, Poland and Switzerland. On 15 March, national authorities took down the infrastructure of the platform, seizing 4 servers, and also seizing about 1909 Bitcoins in 55 transactions (approx. EUR 44.2 million) and 7 TB of data.

Guo Wengui, a Chinese billionaire known for his opposition to Beijing and ties to the administration of former US President Donald Trump, has been charged in the United States with defrauding investors out of $1bn.

Guo, also known as Ho Wan Kwok and Miles Guo, was arrested in New York on Wednesday over an alleged conspiracy involving the misappropriation of hundreds of millions of dollars obtained from his thousands of followers online, the US Department of Justice said in a statement.

Guo is accused of pocketing money raised from investors who were promised outsized returns for backing a number of his business ventures, including the media company GTV Media Group, an exclusive membership club known as G|CLUBS and a cryptocurrency called Himalaya Coin.

The Japan Securities Dealers Association said Wednesday it has imposed a penalty of 300 million yen on SMBC Nikko Securities Inc for market manipulation, matching the highest fine previously issued by the organization.

According to the JSDA, SMBC Nikko illegally propped up the prices of 10 individual stock issues to stabilize them last year in “block offering” transactions.

The fine imposed on the brokerage by the JSDA is equal to that issued to Nomura Securities Inc. in connection with an insider trading scandal in 2012.

At the best of times this is not a good look for an institution in charge of £1.1 trillion worth of the world’s deposits and investments. In the middle of the worst jitters over bank safety for 15 years, it is doubly awkward. Coming weeks after both the chairman and chief executive had given the impression that the outflows had bottomed out, it is also deeply embarrassing. Markets gave their own unambiguous verdict. Credit default swaps on Credit Suisse debt hit a record, meaning it is more costly than ever for investors to insure against the group defaulting. The shares slumped by 4 per cent at one point yesterday, though they rallied on the back of a worldwide bounce in bank stocks.

A Southfield, Michigan-headquartered bank holding company has agreed to plead guilty to securities fraud for filing false securities statements relating to its 2017 initial public offering (IPO) and its 2018 and 2019 annual filings.

According to a signed plea agreement that will be publicly filed in court, Sterling Bancorp, Inc. (the Company) was the holding company for its wholly owned subsidiary, Sterling Bank and Trust F.S.B. (the Bank, or together with the Company, “Sterling”). Sterling – with branches located in San Francisco, Los Angeles, Seattle, New York, and Southfield – completed an IPO in 2017, and the Company’s stock began trading on the NASDAQ exchange under the ticker symbol “SBT.”

The United States Environmental Protection Agency has proposed the first federal limit on so-called “forever chemicals” in the country’s drinking water, a move officials said will save lives.

The proposal announced will limit per- and polyfluoroalkyl substances, also known as PFAS.

The substances have been linked to a range of health issues, including low birth weight and kidney cancer. They do not naturally degrade in the environment and are expensive to remove from water.

ilicon Valley Bank’s parent company and two senior executives are facing a class-action lawsuit in the United States, where shareholders have accused the financial institution of failing to disclose the risks that anticipated interest rate hikes would have on its business.

The lawsuit, filed in federal court in the Northern District of California on Monday, is seeking unspecified damages from SVB Financial Group and its Chief Financial Officer Daniel Beck, as well as the bank’s Chief Executive Officer Greg Becker.

The bank collapsed and its assets were seized by the US government late last week after a mass withdrawal of funds by customers.

The agency cited concerns over the lenders’ reliance on uninsured deposit funding and unrealized losses in their asset portfolios. “The review for downgrade reflects the extremely volatile funding conditions for some US banks exposed to the risk of uninsured deposit outflows,” it stated. Moody’s also slashed the debt ratings of collapsed New York-based Signature Bank deep into junk territory, withdrawing future ratings for the insolvent lender. The downgrades come while US bank stocks have continued to plummet despite the government’s measures to support lenders and prevent more bank runs. First Republic Bank has led the sell-off, with its share price nosediving more than 60% on Monday, forcing a brief halt in trading due to volatility. Western Alliance Bancorp lost over 47% while Zions Bancorp declined by about 26%. Dallas-based Comerica dropped 28% and UMB lost more than 15%.

According to Andrew Adams, the group has focused on identifying those who are helping Russians to avoid sanctions and export controls. “I think it can be quite effective to be sanctioning facilitators,” Adams said, calling them “professional sanctions evasion brokers.” A recent report from the Treasury Department showed that more than $58 billion worth of sanctioned Russian assets have been blocked or frozen worldwide so far. Adams pointed out that KleptoCapture aims to sell the frozen yachts and other property of sanctioned Russians, despite the legal difficulties, and use the proceeds for the benefit of Ukraine. He noted, however, that this would be done in accordance with the law.

The ban will be imposed next week and reevaluated after six months, De Croo said in a statement. Government employees will be allowed to use the app on their personal devices, but not on any devices “whose purchase, subscription or use are partly or fully paid for by the federal government.” Citing reports by the Belgian State Security Service and Centre for Cybersecurity, De Croo claimed that TikTok collects large amounts of user data, manipulates the information users are exposed to, and cooperates with Chinese spy agencies. “We must not be naive,” De Croo said. “TikTok is a Chinese company that today is obliged to cooperate with the Chinese intelligence services.”

The US Justice Department announced on Wednesday having obtained a warrant to seize a Boeing 737-7JU aircraft owned by Russian oil company Rosneft and worth approximately $25 million.  The court documents cited in the press release states the probable cause for the intended seizure as violations of the Export Control Reform Act (ECRA) and of the recent sanctions issued against Russia.  Those sanctions bar a plane that was built or manufactured in the US from entering Russia without a valid license, the report stated. Airplanes and aircraft parts are subject to export rules because of their potential military use and national security implications.  “Specifically, since February 2022, when the export controls that bar the United States-built plane’s re-entry to Russia went into effect, the plane has left and reentered Russia at least seven times, in violation of federal law,” the press release said. “The Boeing jet, which was manufactured in the United States, was last in the United States in March 2014, and is currently believed to be in, or traveling to or from, Russia,” it continued.  In August, the Justice Department was approved by a US court to seize a plane belonging to another Russian energy company, a $45-million jet reportedly owned by oil major Lukoil.