U.K. competition and markets regulator wields new power to combat fake online reviews
Fake reviews of products and services are a global phenomenon, but regulators in the U.K. are beginning to use newly expanded powers to protect buyers and honest competitors following a recent crackdown by U.S. authorities.
Interim DOJ Civil Division head nominated to take on full role
President Donald Trump announced his intent to nominate Brett Shumate, the current acting head of the Civil Division at the Department of Justice, to assistant attorney general of the division. Shumate’s nomination to the arm of the DOJ that primarily handles civil cases comes at a time when Trump’s administration ...
FCA fines Mako $2.1M for ineffective financial crime monitoring program
Mako Financial Markets Partnership will pay $2.1 million (1.7 million pounds) in penalties to the U.K. Financial Conduct Authority to settle allegations that its financial crime prevention program was ineffective.
DOD health contractors rack up more than $100M in excess payments, DOJ alleges
Six health centers that contracted with the Department of Defense, intentionally overbilled the government for more than $100 million, the Department of Justice alleged in announcing a settlement with one of the plans.
CFTC takes acting off enforcement director’s title
The Commodity Futures Trading Commission announced the appointment of Brian Young as director of the agency’s Division of Enforcement.
Former Deloitte partner dinged by PCAOB for failures in Bancolombia audit
A former Deloitte partner will pay $75,000 and be barred from working as a public company registered accountant for two years by the Public Company Accounting Oversight Board after violating audit standards during a 2016 audit.
Trump has called for a six-month ban on FCPA enforcement. How should compliance respond?
With a six-month ban on enforcement of the Foreign Corrupt Practices Act, compliance should retreat from fear-based messaging and instead focus on why ethical practices make good business sense, experts say.
DOJ orders Lockheed Martin to pay $30M over defective pricing on F-35 contracts
The Department of Justice announced it reached a settlement with Lockheed Martin stemming from allegations of “defective pricing on contracts for F-35 military aircraft.” The deal comes days after Attorney General Pam Bondi was confirmed by the Senate, which will shift the DOJ’s focus away from white-collar misconduct.
Experts question effectiveness of new enforcement tool SFO is finally wielding
The U.K.’s Serious Fraud Office has made its first use of an enforcement tool that was meant to bring oligarchs and kleptocrats to book. But lawyers are unsure whether the move signifies either a change in direction or fortune for the agency.
BSA failures lead to $42M fine for Brink's over unregistered cash shipments to Mexico
Armored car company Brink’s Global Services will pay $42 million in penalties to settle charges laid by federal regulators for violating anti-money laundering provisions of the Bank Secrecy Act.
Bondi-led DOJ sharply pivots away from prosecution of corporate FCPA violations
The U.S. Department of Justice under new Attorney General Pam Bondi will de-emphasize white collar misconduct linked to bribes and foreign corruption, instead prioritizing corruption cases linked to human smuggling and the trafficking of narcotics and firearms.
Apex Clearing Corp. to pay $3.2M over improper disclosures, distorting investor payouts
A clearing firm agreed to pay $3.2 million and certify that it put in place compliance measures under an agreement with the Financial Industry Regulatory Authority.
Arizona couple pleads guilty in vast $1.2B skin graft false claims case
Two owner-operators of three Arizona medical companies have pleaded guilty to billing more than $1.2 billion in false and fraudulent claims to Medicare and other government health programs in less than two years, the Department of Justice said.
CFPB issues $2.5M penalty against Wise in last action of Chopra era
A fine by the Consumer Financial Protection Bureau (CFPB) against the U.S arm of London-based foreign exchange company Wise could be one of the agency’s final actions as a new regulatory regime reportedly froze rules and litigation amid calls for defunding.
FBI, Europol shut down hacking sites selling personal info, tools for cybercriminals
Two massive hacking websites–where criminals sold everything from stolen social security numbers to tools for cybercriminals to gain access to computers–have finally been shut down by an international law enforcement team, the Department of Justice announced.
Five reasons why I’m excited about CW’s Cyber Risk & Data Privacy Summit
Having worked for Compliance Week for three years, I’ve found it remarkable how compliance professionals can be so consistently upbeat about their plight. An often refrain in compliance circles is “be comfortable with being uncomfortable.” As difficult as the job can be, that clearly doesn’t mean it can’t be fun.
FCA dings Infinox in first fine under U.K. capital market reforms of 2018
The U.K. Financial Conduct Authority issued a landmark fine against trading platform Infinox Capital for failing to report “high-risk” transactions, the first-ever enforcement under a 2018 law.
KuCoin latest crypto firm to pay hefty price for violating BSA with $297M penalty
The Sechelles-based owner of cryptocurrency exchange KuCoin has agreed to pay nearly $300 million in penalties–and cease doing business in the U.S. for two years–to settle charges that it failed to properly monitor potential criminal activity on its network.
DOJ indicts five in remote IT work scheme to circumvent North Korean sanctions
Five people, including two Americans, allegedly duped U.S. companies into hiring North Koreans for contract IT work, and funneled millions in U.S. dollars to the sanctioned regime, the Department of Justice said.
Ex-nursing home operator who defrauded Medicaid sentenced to 12 years in prision
The former operator of a Massachusetts homecare agency was sentenced to 12 years in prison for defrauding Medicaid of more than $100 million, the Department of Justice said.
CPSC fines Google-owned Fitbit $12M for failing to report smartwatch burn hazard
The U.S. Consumer Product Safety Commission ordered Google-owned Fitbit to pay more than $12 million and comply with certain undertakings to settle allegations the company knowingly failed to report a serious burning hazard with its Ionic smartwatches.
Trump gives TikTok 75-day reprieve after ban goes into effect
President Donald Trump signed an executive order Monday delaying the Department of Justice (DOJ) from enforcing the long-awaited TikTok ban. While the social media platform’s fate is still up in the air, Trump signaled his support for it being sold, with the U.S. as a “partner.”
SEC charge against CCO in penny stock scheme raises more questions about gatekeeper liability
A recent complaint by the Securities and Exchange Commission against the chief compliance officer of a Chicago-based investment firm contains some of the most worrisome examples of how CCOs can be found liable for misconduct at their firm.
Walgreens ducked compliance, filled fake opioid prescriptions, DOJ suit alleges
Walgreens skimped on compliance and filled millions of prescriptions for narcotics that weren’t medically necessary, the Department of Justice alleged in a complaint against the company, first brought by four whistleblowers.
FRC discloses probe of KPMG over 2022 audit of gambling company Entain
The U.K. Financial Reporting Council disclosed an investigation into KPMG’s audit of international sports betting and gambling company Entain Group.
SEC fines LPL Financial $18M for failed due diligence on new, high-risk accounts
Broker-dealer LPL Financial will pay $18 million to settle charges by the Securities and Exchange Commission that its anti-money laundering program did not properly vet customers and failed to close or restrict thousands of high-risk accounts.
Amex to pay $230M in penalties to resolve charges it deceived customers, banking partner
American Express will pay approximately $230 million in fines and penalties to settle allegations that it deceptively marketed credit card and wire transfer products, and also misrepresented the tax benefits of two payroll wire transfer products.
Wells Fargo fined $35M, Merrill Lynch $25M over improper cash sweeps
Wells Fargo and Merrill Lynch will pay $35 million and $25 million, respectively, to settle allegations by the Securities and Exchange Commission that their handling of investment accounts’ cash sweep programs violated federal law.
The Rise, Fall, and Rise of Crypto: Lessons from FTX amidst a changing regulatory landscape
As President Trump assumes power, the crypto industry is in the spotlight. Trump has tapped popular crypto advocate Paul Atkins to lead the SEC, and crypto proponents feel positive about gaining fast-tracked guidance. Crypto experts and industry leaders share insights into what the industry needs from regulators to drive innovation.
GM sued by FTC for selling location and behavioral data without drivers' consent
General Motors failed to disclose to customers that it tracked their precise locations and driving behavior and sold the data to third parties, the Federal Trade Commission alleged in a proposed order.
Cash App owner Block to pay $175M over fraud caused by lax consumer protection practices
Block, the owner of Cash App and Square, will pay $175 million to settle allegations that its lax consumer protection practices put customers at high risk of fraud, the Consumer Financial Protection Bureau said.
FTC orders Mobilewalla, Gravy Analytics to stop collecting geolocation data without permission
Two large data brokers, Mobilewalla and Gravy Analytics, collected billions of records containing sensitive geolocation and personal data of millions of people, and then sold it without their consent, the Federal Trade Commission said.
SEC fines cannabis hedge fund $150K for bogus AML policies, ties to Russian oligarch Abramovich
Cannabis hedge fund Navy Capital Green Management agreed to pay $150,000 to settle charges levied by the Securirties and Exchange Commission that the firm misled investors about its AML/CFT policies and allowed a sanctioned Russian oligarch to invest.
Musk sued by SEC for failing to disclose Twitter stock purchases quickly enough
Elon Musk, the world’s wealthiest person and the apparent right-hand man of incoming U.S. president Donald Trump, has been taken to court for a third time by the Securities and Exchange Commission for allegedly violating securities law.
SEC issues $63M in fines to dozen firms in ongoing off-channel comms sweep
Twelve more firms have been dinged with fines by the Securities and Exchange Commission for failing to properly supervise employees who used off-channel communications to conduct company business. In this latest round of enforcement actions, nine investment advisers and three broker-dealers will pay a total of $63 million.
CFPB sues Capital One over 'cheating' customers on savings account interest rates
Capital One promised very high interest rates on millions of savings accounts but the bank didn’t deliver, losing customers more than $2 billion, the Consumer Financial Protection Bureau alleged.
Robinhood to pay $45M fine to settle securities law violations by broker-dealers
Robinhood, a disruptive force in the market for Main Street investors but also a serial offender of securities laws, will pay a total of $45 million to settle numerous violations of SEC rules and regulations by two of its broker-dealers.
Broker-dealer BMO Capital Markets to pay $41M to settle trade supervision lapses
A broker-dealer subsidiary of Toronto-based BMO Financial Group will pay nearly $41 million in penalties to the Securities and Exchange Commission to settle allegations that its traders issued misleading disclosures on bonds for three years, causing $19 million in harm to its customers.
Cannabis company dinged by SEC over ‘round-trip’ transfer to inflate year-end cash
A cannabis company agreed to pay $225,000 to settle allegations that funds were temporarily deposited into its year-end accounts for the sole purpose of inflating year-end cash, the Securities and Exchange Commission said.
SEC slams WWE founder Vince McMahon for misstatements caused by hush money payments
Vince McMahon, the founder and former CEO of WWE, was fined $400,000 and ordered to reimburse the wrestling giant more than $1.3 million to settle charges brought by the Securities and Exchange Commission that he failed to disclose hush money payments he made on behalf of himself and the company.
Experian failed to correct flawed financial data about consumers, CFPB complaint alleges
Experian, the credit reporting giant, let compliance slide when it came to addressing consumer complaints about incorrect data, the Consumer Financial Protection Bureau said in a lawsuit against the credit agency.
SkyGeek dinged by OFAC for completing orders, refunds with sanctioned Russian firms
Nearly three years after Russia invaded Ukraine, numerous U.S. sanctions imposed on Russia-based companies connected to the war effort have made doing business in the country fraught with unseen risks, as one U.S. airplane parts distributor learned recently.
Berkshire Hathaway mortgage unit led mobile home buyers needlessly into foreclosure, CFPB says
A Berkshire Hathaway unit that is a major lender to people buying mobile homes intentionally failed to qualify borrowers, the Consumer Financial Protection Bureau alleged in a complaint. As a result, many families ultimately lost their homes and sank into debt, echoing a series of events that helped power the ...
FINRA ends year with string of fines against Jefferies, UBS, Citi, Barclays
The Financial Industry Regulatory Authority issued fines against four large banks to end 2024, all for different alleged misconduct, but all related to the firms’ failures to implement a supervisory system reasonably designed to achieve compliance with FINRA rules.
Russian-Israeli LockBit developer to be extradited to U.S. for extorting $500M
An alleged software mastermind of the notorious LockBit ransomware group will soon be extradited to the United States to stand trial on charges that his criminal enterprise extorted at least half a billion dollars from victims worldwide, including U.S. businesses and hospitals, the Department of Justice said.
Rytr agrees to halt fake AI review service in settlement with FTC
Purported “testimonial and review” service Rytr agreed to stop selling its program that used artificial intelligence to create fake content as part of a consent order with the Federal Trade Commission.
Five more compliance triumphs of 2024
Whether you’re a multinational telecommunications company looking to certify your anti-corruption program post-settlement, or a biochemical company victimized by a “rogue” employee, seeing the light at the end of the enforcement tunnel isn’t always easy.
OCC orders Bank of America to shore up BSA/AML, sanctions compliance programs
Bank of America avoided a monetary penalty in agreeing to settle charges with the Treasury Department’s Office of the Comptroller of the Currency but was ordered to shore up previously disclosed deficiencies in its Bank Secrecy Act/anti-money laundering (BSA/AML) and sanctions compliance programs.
AAR Corp. to pay $56M to settle FCPA violations in Nepal, South Africa
Aviation maintenance services provider AAR Corp. will pay nearly $56 million to settle charges that it violated the Foreign Corrupt Practices Act when it paid bribes to government officials in Nepal and South Africa.
CFPB sues big banks behind money transfer app Zelle over lax oversight, fraud
JPMorgan Chase, Wells Fargo Bank, Bank of America, and the company behind online money transfer app Zelle were sued by the Consumer Financial Protection Bureau for allegedly failing to safeguard Zelle’s network and causing customers to lose $870 million, the CFPB alleged.