- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Adrianne Appel2023-03-16T20:21:00
Sterling Bancorp pleaded guilty to falsifying securities statements and will pay approximately $27.2 million in restitution, the Department of Justice (DOJ) announced.
Sterling avoided a criminal penalty in the case, as the DOJ opted to focus the payment total on restitution without threatening the viability of the bank’s operations, the agency said in a press release Wednesday.
The bank falsified securities documents prior to and following a 2017 initial public offering (IPO) to make it appear it had strong revenue, according to the DOJ. At the time, the bank’s residential loan program, “Advantage Loan Program,” served as its primary loan product and was marred by fraudulent applications. The continuing deficiencies in the program, ALP, caused the bank to falsify filings with the Securities and Exchange Commission (SEC) through 2019, the DOJ said.
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The Office of the Comptroller of the Currency issued a cease-and-desist order against the former general counsel at Sterling Bank and Trust for not ensuring the institution’s Bank Secrecy Act compliance and failing to timely file suspicious activity reports.
The Department of Justice codified a new policy regarding the voluntary self-disclosure of corporate misconduct, following recent announcements on the updates by agency officials.
Deputy Assistant Attorney General Lisa Miller spoke to the value of deferred prosecution agreements to resolve corporate misconduct amid renewed criticism directed toward the Department of Justice’s 2021 agreement with Boeing.
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A bank examiner and senior manager at the Federal Reserve Bank of Richmond pled guilty to insider trading after allegedly misappropriating confidential information on seven banks to make profitable trades.
New York-based investment firm Drexel Hamilton will pay more than $1.1 million in penalties, with four current and former employees paying fines as well over committing hundreds of violations of rules regarding the sale of municipal bonds.
