Corporate Crime & Compliance UK

  • November 18, 2019

    Citi Says Ex-Trader Can't Show It Steered DOJ Probe

    A former trader acquitted of criminal charges for allegedly manipulating foreign exchange markets should voluntarily walk away from suing Citigroup Inc. for $112 million, having failed to show the bank lied to prosecutors to limit its own legal exposure, the financial giant said in New York federal court.

  • November 18, 2019

    Wealth Manager Faces 2021 Trial In Ex-Soccer Players' Suit

    A lawsuit brought by a group of former soccer players against a wealth management firm and one of its founding partners for more than £15 million ($19.4 million) over allegedly negligent investment advice is on track for trial in May 2021.

  • November 18, 2019

    Prosecution Rests In Barclays Execs' Qatar-Fees Fraud Trial

    Prosecutors rested their six-week-long case on Monday against three former Barclays executives on trial in London for allegedly conspiring to hide millions of pounds in fees paid by the bank to Qatari investors who helped it raise capital during the financial crisis.

  • November 18, 2019

    Finance Pros Plead Not Guilty Over Libya Investment Fraud

    The former chief investment officer of asset manager FM Capital Partners and a former banker with Julius Baer Group AG pled not guilty at a criminal court on Monday to fraudulently racking up fees while managing a Libyan sovereign wealth fund.

  • November 18, 2019

    Ex-Banker Denies Deleting WhatsApp Over FCA Probe

    A former banker at Russia's VTB Capital pled not guilty Monday to destroying a document by deleting a chat service from his phone that he suspected would be relevant to a Financial Conduct Authority investigation into insider dealing.

  • November 18, 2019

    Cryptoassets Get Boost As Judges Settle Key Legal Question

    Cryptoassets can be treated as physical property under English law, senior judges concluded Monday in a decision designed to position the U.K. as a leading jurisdiction in financial and legal technology. 

  • November 18, 2019

    UK Financial Watchdogs Fine Insurance Boss For Tax Cheat

    The former head of a mutual insurance company will be fined over £150,000 ($194,000) after he allegedly transferred “excessive amounts” from his payslip to his wife for six years to allow him to dodge taxes, Britain’s financial watchdogs said Monday.

  • November 15, 2019

    Investors Knew Of Mozambique Graft, Boustani Jury Hears

    Jurors in the securities fraud trial of Privinvest Group executive Jean Boustani over a purported $2 billion fraud and kickback scheme involving Mozambican state-backed loans heard on Friday from a former emerging markets asset manager turned consultant who said corruption in the East African country was well known to investors.

  • November 15, 2019

    Manchester City's Appeal Of Finance Probe Rejected

    The Court of Arbitration for Sport said Friday that Manchester City’s appeal of a Union of European Football Associations decision to initiate a probe of potential finance rule violations must be dismissed, as the club was attempting to challenge a a ruling not yet final.

  • November 15, 2019

    Info Sharing Isn't Rate-Rigging, Big Banks Tell Cities

    Bank of America, Wells Fargo and a slew of other major financial institutions said Thursday that the two major cities accusing them of rigging bond rates are trying to spin standard information sharing into an antitrust conspiracy.

  • November 15, 2019

    No Threats Here, RBS Says As £34M Morley Trial Wraps

    RBS denied illegally coercing a developer into handing over the bulk of his property portfolio to resolve concerns over his £75 million ($96.7 million) loan, with the big UK lender saying at the close of a high-profile trial Friday it had a legal right to try to recover the money.

  • November 15, 2019

    Ex-PrivatBank Owners Ask For Time To Fight $2.6B Fraud Suit

    Two former owners of PrivatBank being sued by the lender asked a London judge Friday for more time to file their defenses to two-year-old allegations that they orchestrated a scheme to steal billions of dollars from Ukraine’s largest bank.

  • November 15, 2019

    UK Litigation Roundup: Here's What You Missed In London

    The past week in London has seen Libya's sovereign wealth fund sue Credit Suisse amid a long-running bribery battle, retailer Sports Direct take on its former accountant Grant Thornton, and a host of underwriters file claims against a shipowner and its bank a month after winning a case over a fake pirate attack. Here, Law360 looks at those and other new claims in the U.K.

  • November 15, 2019

    Goldman Sachs To Exit Bond Price-Fixing Suit With $20M Deal

    Investors who targeted big banks with bond price-fixing claims have nabbed a third settlement in the sprawling litigation, telling a New York federal judge Thursday that they’ve reached a $20 million deal with Goldman Sachs.

  • November 15, 2019

    EU Banks Support France’s Call For Tougher Cybersecurity

    The European banking sector has said it will support an initiative by the French government to clamp down on cybercrime and fend off attempts by foreign governments to interfere with elections.

  • November 15, 2019

    Fee Trips Up UK Banks In Talks On Helping Fraud Victims

    Banks in Britain have failed to reach a deal on how to compensate victims of scams in which customers are tricked into transferring money directly to fraudsters amid disagreements over a proposed transaction fee, an industry body said Friday.

  • November 14, 2019

    Mozambique Maritime Deals Were Legit, Boustani Jury Hears

    Attorneys for Privinvest Group executive Jean Boustani on Thursday sought to cast a different light on maritime projects in Mozambique that prosecutors say were at the center of a $2 billion fraud and kickback scheme, eliciting testimony from insiders at the Abu Dhabi-based shipbuilder who told jurors the projects were aboveboard.

  • November 14, 2019

    Aviation Mogul's Testimony Pared Down In UAE Fraud Claim

    A London judge on Thursday struck out parts of aviation magnate Farhad Azima’s witness statement in a case that’s been brought against him by an Emirati state-owned investment authority, concluding that the arguments arose from speculation with no firsthand knowledge.

  • November 14, 2019

    Ex-Deutsche Trader To Pay $500K To End DOJ’s RMBS Suit

    The U.S. Department of Justice announced Thursday that a former Deutsche Bank trader will pay $500,000 to settle allegations that he misled investors about the quality of loans underlying two residential mortgage-backed securities in the lead-up to the financial crisis.

  • November 14, 2019

    No Brexit? Then Name A Commissioner, EU Says

    The European Commission took steps Thursday toward taking the U.K. to court over its refusal to nominate a new commissioner to serve in Brussels, saying the country still has to live up to its obligations after its exit from the European Union was delayed again in October. 

  • November 14, 2019

    Fraudsters Posed As US Fed Officials In €100M Con, Jury Told

    A Dutch-Swiss shipping company was conned out of a €100 million ($110 million) investment by a gang of fraudsters posing as U.S. government officials, the company’s top in-house lawyer told a London jury on Thursday.

  • November 14, 2019

    Danish Watchdog Tells Swedish Bank To Boost AML Efforts

    Denmark’s financial regulator said Thursday it has ordered the Danish arm of Swedish bank Handelsbanken to strengthen its anti-money laundering efforts after an inspection found an “inherent risk” that the subsidiary would be used to move dirty money.

  • November 14, 2019

    Singapore Fines UBS $8.2M For Overcharging Clients

    Singapore’s financial watchdog hit UBS AG with a fine of 11.2 million Singapore dollars ($8.2 million) on Thursday, the second regulatory penalty the Swiss giant has faced this week for overcharging clients during trades.

  • November 14, 2019

    Pension Watchdog Snares More Execs In Criminal Crackdown

    Two company bosses are set to be sentenced after pleading guilty in separate cases to lying about whether they had placed their staff into a workplace savings plan, the pensions watchdog said Thursday.

  • November 14, 2019

    Fear Still Holds Back Whistleblowers, Banking Chief Warns

    A huge number of people working at lenders in Britain refuse to blow the whistle on misconduct because they fear repercussions, the head of a banking standards body warned Thursday.

Expert Analysis

  • Post-Brexit UK Likely To Conform With EU On Human Rights

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    In a recent speech, U.K. Foreign Secretary Dominic Raab stated his intent to expand sanctions for human rights violations by extending the so-called Magnitsky amendment, strongly indicating that Britain's exit from the EU would be unlikely to disrupt coordinated efforts to address international transgressions against human rights, says Stephen Baker at Baker & Partners.

  • Key Takeaways From Ex-Alstom Exec's FCPA Conviction

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    In U.S. v. Hoskins, a Connecticut federal court last week convicted a foreigner who did not work for a U.S. company of Foreign Corrupt Practices Act violations, presenting valuable lessons about the scope of FCPA liability and how to effectively withdraw from a bribery scheme, say Sunil Shenoi and Kim Nemirow at Kirkland.

  • The Evolution Of GDPR Enforcement Across The EU

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    With the last few months bringing significant fines to major businesses that have breached the European Union's General Data Protection Regulation, it is clear that regulators are moving away from the light-touch approach they employed during the transition to the new rules, says James Simpson of Blaser Mills.

  • Corporate Wrongdoing Risks Go Beyond Exec Departures

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    Recent controversy over misconduct allegations that led to the ousting of a KPMG executive reminds firms that the challenges caused by suspecting or uncovering internal wrongdoing are not so easily solved by the implicated executive's exit, says Sarah Chilton of CM Murray.

  • Series

    Why I Became A Lawyer: Being There For Families In Trouble

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    My parents' contentious, drawn-out divorce was one of the worst experiences of my life. But it taught me how to be resilient — and ultimately led me to leave corporate litigation for a career in family law, helping other families during their own difficult times, says Sheryl Seiden of Seiden Family Law.

  • What To Expect From The US-UK Data Access Agreement

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    The data sharing agreement recently signed by the U.K. and U.S. will be a useful evidence tool in some situations, such as counterterrorism efforts, but is unlikely to be a landmark pact that radically speeds up investigations, says Anna Gaudoin of WilmerHale.

  • FCPA Lessons On 3rd-Party Risks And Cooperation Credit

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    The Microsoft settlement, along with other recent Foreign Corrupt Practices Act enforcement actions, demonstrates the need to prioritize compliance resources in high-risk jurisdictions if third-party intermediaries are engaged and provides insight into how the U.S. Department of Justice voluntary disclosure policy operates, say attorneys at FaegreBD.

  • Covert Corporate Surveillance May Not Be Practical For SFO

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    Recently, Serious Fraud Office Director Lisa Osofsky expressed her desire for covert surveillance to play a greater role in the U.K.'s battle against corporate crime, but a number of barriers stand in the way of this approach, says Neil Williams of Rahman Ravelli.

  • 3 Ways To Leverage Vulnerability For Lawyer Well-Being

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    Admitting to imperfection is an elusive construct in the legal industry, but addressing this roadblock by capitalizing on vulnerabilities can increase personal and professional power, says life coach and attorney Julie Krolczyk.

  • Zurich Case Brings Clarity To Complex Contempt Proceedings

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    The U.K. Court of Appeal's recent decision in Zurich v. Romaine provides insight into the meaning of "in the public interest" in the context of bringing contempt proceedings against a party or witness who verifies false claims, says Matt Peacock of Signature Litigation.

  • SFO Cooperation Guidance Merits Cautious Welcome: Part 2

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    While the Serious Fraud Office's Corporate Cooperation Guidance provides sensible thoughts on cooperation overall, the SFO's evolving views on privilege are at best confusing and at worst unhelpful, say Matt Getz and Scott Wilson of Boies Schiller in the final part of this article.

  • FX Fraud Decision Tests Limits Of Right-To-Control Theory

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    In United States v. Johnson, the Second Circuit’s decision affirming an ex-HSBC foreign exchange trader's wire fraud conviction highlights that the government and courts may not agree on the government's burden to prove tangible economic harm under the so-called right-to-control theory, say attorneys at White & Case.

  • SFO Cooperation Guidance Merits Cautious Welcome: Part 1

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    The Serious Fraud Office's recently released Corporate Cooperation Guidance is a mixed bag, providing an excellent framework for how investigations should be conducted, but not clearly stating how cooperation will benefit corporates, say Matt Getz and Scott Wilson of Boies Schiller.

  • PayPal Case Illustrates Difficulty Of Avoiding CMA Penalties

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    The U.K. Competition and Markets Authority's recent fine against PayPal for violating U.K. merger control rules — despite the company's attempts to put safeguards in place — demonstrates how rigid the CMA can be when it comes to initial enforcement orders, say attorneys at Fried Frank.

  • SFO's Cooperation Strategy May Fail To Entice Corporations

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    Serious Fraud Office Director Lisa Osofsky's emphasis on corporate cooperation instead of traditional prosecutions may fail to produce results unless individuals and companies contemplating whether to share information with the SFO can be convinced that the benefits outweigh the risks, says Danielle Reece-Greenhalgh of Corker Binning.