DoJ

Money laundering conviction for Ponzi fraudster

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More than 100 people put more than USD10 million dollars into, amongst other things, a fake food business. That's a lot of money on average so we can assume these were not stupid people. George S. Blankenbaker Jr., 56 found a honey hole and worked it hard. His reward is jail.

That's not the end of the story...

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USA's SEC, DoJ and UK's SFO and Foster Wheeler - global business, local risk.

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Foster Wheeler Limited a UK registered subsidiary of a complex group, part of which is listed on the USA's NASDAQ and therefore falls within the jurisdiction of many US laws even though it is a Swiss domiciled subsidiary of a UK group. Amongst those is the Foreign Corrupt Payments Act or FCPA. This relates to payments by a person with a US footprint making corrupt payments to persons outside the USA. Foster Wheeler Energy Limited is also part of the same group and is also a UK registered company. That brings its actions squarely within the remit of the Serious Fraud Office, regardless of where those actions take place. Moreover, there are agreements with Ministério Público Federal (‘MPF’), the Comptroller General’s Office (‘CGU’) and the Solicitor General (‘AGU’) in Brazil.

CoNet Section:

Bribery, Corruption and Plunder

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The relationship between the USA's SEC and DoJ

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In a congressional hearing in 1987, US Congressman Norman F Lent of New York put it to the Chairman of the USA's Securities and Exchange Commission, John SR Shad that Rudolph William Louis ("Rudy") Giuliani, then the US Attorney for the Southern District of New York, had a better public relations office than the SEC, it appearing that it was his office that had done all the work in the insider dealing case centred around Boesky, Milken, Levine and Drexel, Burnham, Lambert. Shad's explanation of the relationship which holds good today.

BIScom Subsection:

Enforcement

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Wells Fargo to pony up USD3,000 million in penalties

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Wells Fargo & Co and its subsidiary Wells Fargo Bank, N.A, have escaped prosecution, at least for the time being, by agreeing to hand over USD3,000 million to various agencies and departments of the US Government. It all started when the company decided it needed more account holders. Normal banks advertise or put young people on the streets with flyers. Wells Fargo had a different and shorter route - it would just create accounts for people, even if they hadn't asked for them. And that's not the full extent of what the bank is paying.

BIScom Subsection:

Management

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Retailer fined after lying to investors

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In 2015, a news report said that the flooring products of a listed company, "Lumber Liquidators," contained dangerously high levels of Formaldehyde. The company issued a denial and filed it with the SEC. That denial was untrue.

CoNet Section:

Corporate Management

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US Congressman's assistant jailed for bribery and attempted extortion.

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It would be nice if the US Department of Justice wrote its media releases in correct English. In this case, despite what the DoJ says, the defendant did not "attempt to extort a marijuana dispensary," he attempted to extort money from the owners of the dispensary. And you thought the only problems California's relaxed attitude to the retailing of MaryJane was how the operators would bank their money. No, the operators are exposed to bad guys wearing suits just as much as bad guys wearing bling and carrying weapons.

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FCRO Subsection:

Bribery and Corruption

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California announces Western Union deal - several weeks after the DoJ told the world.

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It's bizarre. A press release received today headed "Attorney General Xavier Becerra Announces Settlement With Western Union For Wire Fraud Scams, Encourages Victims to Come Forward" refers to a case that the US Department of Justice announced settled on 19th January this year under the headline "Western Union Admits Anti-Money Laundering and Consumer Fraud Violations, Forfeits USD586 Million in Settlement with Justice Department and Federal Trade Commission." In the DoJ announcement it says that the California settlement is part of the overall deal. However, there is some interesting stuff...

BIScom Subsection:

Enforcement

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A study in irony as a US politician pleads guilty to bribery charges

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Ronald S. Calderon, formerly a state senator in California has admitted accepting tens of thousands of dollars in bribes for performing his official duties. No one sees the irony in the fact that he has mitigated his sentence by entering into a plea agreement with the federal government in return for making a cash payment.

FCRO Subsection:

Bribery and Corruption

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