All Regulatory Enforcement articles – Page 3
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News BriefT-Mobile reaches $31.5M settlement with FCC over multiple data breaches
T-Mobile, which experienced three huge data breaches in the past three years, agreed to pay $31.5 million in penalties and remediation for failing to protect millions of its customers’ personal information as part of a settlement with the Federal Communications Commission.
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News BriefStarling Bank fined $38.5M for repeatedly onboarding high-risk customers
The U.K.’s Financial Conduct Authority fined Starling Bank, Britain’s first digital bank, nearly 29 million pounds (U.S. $38.5 million) for repeated failures related to onboarding high-risk customers.
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News BriefTD Bank unit to pay $28M in penalties for failing to properly supervise rogue trader
Broker-dealer TD Securities failed to prevent a trader from placing and then withdrawing thousands of false trades over the course of a year in part because its compliance department failed to follow up on red flags generated by the illegal trades, three regulators said.
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News BriefFINRA fines Merrill Lynch, BofA Securities $2.3M for reporting, registration failures
The Financial Industry Regulatory Authority issued two separate fines against Merrill Lynch and BofA Securities totaling nearly $2.3 million for reporting violations and failing to timely file amendments on registration forms for their registered representatives.
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News BriefIrish DPC fines Meta $102M over GDPR violation linked to improper storage of passwords
The Irish Data Protection Commission fined Meta Ireland 91 million euros (U.S. $102 million) for multiple violations of the European Union’s General Data Protection Regulation related to the inadvertent storage of user passwords without encryption.
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News BriefCassava Sciences settles with SEC for $40M over skewed Alzheimer’s drug data
A former Alzheimer’s researcher manipulated the results of a Cassava Sciences drug, with the pharmaceutical company and its former chief executive reaching a $40 million settlement with the Securities and Exchange Commission over allegedly misleading the public.
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PremiumAI misuse could lead to sanctions from multiple regulators, experts warn
The proliferation of AI, as well as the promised business cases promoting its use, has led companies around the world to quickly invest in the technology. Executives hope these AI tools will improve efficiencies, reduce costs, and help them stay competitive. But it could lead to just the opposite.
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News BriefFinCEN, OFAC sanction crypto platforms linked to Russia, cybercrime
U.S. and European law enforcement agencies have announced sanctions against two Russia-linked cryptocurrency platforms in their ongoing chase to snuff out Russian-linked financial platforms that assist cybercriminals.
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News BriefFive firms fined by PCAOB for alleged communications, reporting failures
The Public Company Accounting Oversight Board fined five consultancies, including Ernst & Young, as the agency continues its crackdown on firms violating audit committee communications rules and reporting requirements.
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WebcastCPE Webcast: AI strategy and regulatory risk: A financial services perspective
In our coming webinar, experts will discuss the fundamental rethinking of how risk is understood and managed in the financial services industry and how firms can be proactive to stay ahead of these big technological changes.
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News BriefAAR Corp. discloses former exec implicated in Nepal, South Africa FCPA violations
Aviation maintenance services provider AAR Corp. disclosed that several former employees may have bribed officials in Nepal and South Africa to win contracts, and chose to self-report violations of the Foreign Corrupt Practices Act to authorities in the U.S. and U.K.
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News BriefRegs levy $120M in fines over off-channel comms with two firms avoiding penalties
Regulators continue to hammer firms with fines for violating rules regarding the use of unapproved communication methods by employees, issuing $120 million in fines this week. And for the first time, two firms were not fined because they self-reported their violations.
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PremiumHow lax compliance led three defense companies to give military secrets to U.S. adversaries
There are dozens of ways foreign countries can get their hands on U.S. military secrets, including cyberhacking, espionage, theft, and more. But one increasingly concerning way has been through unintentional disclosures by trusted defense contractors, including Boeing, 3D Systems Corp., and RTX Corp., parent company of Raytheon.
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News BriefSEC penalizes Macquarie Asset Management $80M for overvaluing assets, fraud
Historically, the SEC has fiercely protected the rights of retail investors, and is constantly churning out enforcement actions against investment advisers it alleges have defrauded and manipulated its customers. So, it was somewhat unusual the agency issued an enforcement action this week that involved protecting the rights of institutional investors.
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News Brief‘Biblically responsible’ investment adviser ordered to pay $300K over misleading investors
A “biblically responsible” investment adviser agreed to pay $300,000 and hire an independent compliance consultant to settle charges with the Securities and Exchange Commission that it misled investors, along with other compliance failures.
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News BriefPrager Metis agrees to pay $2M over failed audits, including FTX
Waves of fallout from the collapse of cryptocurrency trading platform FTX continue to ripple, as accounting firm Prager Metis has learned.
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News BriefSEC charges Kubient 'gatekeepers' with failing to stop CEO's AI fraud
Gatekeepers including chief financial officers and the chair of the audit committee have a responsibility to shareholders to report fraud wherever they find it–especially when that fraud involves an artificial intelligence tool meant to combat fraud.
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News BriefSEC nets $1.3M in off-channel comms sweep against municipal advisory firms
Fines for off-channel communications use by employees just keep on coming, with 12 municipal advisory firms fined a total of $1.3 million in the latest Securities and Exchange Commission sweep.
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News BriefDOJ orders Walgreens to pay $107M for fraudulent claims caused by Rx ‘software error’
Walgreens agreed to pay nearly $107 million to resolve allegations, first brought by two whisteblowers, that it improperly billed federal healthcare programs for prescriptions that were never picked up or delivered.
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News BriefFINRA fines Wells Fargo unit $3M for repeatedly pushing ‘unsuitable’ investments
A Wells Fargo subsidiary will pay nearly $3 million to settle allegations that it failed to properly supervise an employee attempting to sell unsuitable investment products to retail investors–the fifth time it has been penalized for similar supervisory failings since 2020.