Whistleblower lawsuit claims defense contractor defrauded Pentagon of $1.3 billion in MRAP deal

STARS AND STRIPES

A defense vehicle manufacturer has been accused by one of its former employees of bilking the Pentagon of $1.3 billion by vastly overcharging the Marine Corps for components of Mine Resistant Ambush Protected (MRAP) vehicles used by troops in Iraq and Afghanistan.

The whistleblower case was orginally brought six years ago by Duquoin Burgess, who worked in Navistar Defense’s contract management department for over three years until October 2012. read more »

SEC Charges Ericsson With FCPA Violations

SECURITIES AND EXCHANGE COMMISSION

The Securities and Exchange Commission today announced that Sweden-based Telefonaktiebolaget LM Ericsson was charged with engaging in a large-scale bribery scheme involving the use of sham consultants to secretly funnel money to government officials in multiple countries. The bribes netted Ericsson hundreds of millions in profits. To resolve these alleged violations of the Foreign Corrupt Practice Act (FCPA) and charges from a parallel criminal investigation, Ericsson has agreed to pay more than $1 billion to the SEC and the U.S. Department of Justice and to install an independent compliance monitor. read more »

Goldman Sachs may get $2B fine over star-studded 1MBD fraud: report

NEW YORK POST

Goldman Sachs might get off with a $2 billion slap-on-the-wrist for its role in one of the biggest and most-star-studded financial frauds of all time, according to a new report.

the $80 billion megabank is inching closer to an agreement with the Department of Justice to pay a fine of between $1.5 billion and $2 billion for arranging $6.5 billions in loans for the infamously fraudulent Malaysian investment fund 1MDB between 2012 and 2013.

Many on Wall Street had projected that the DoJ would throw penalties at Goldman somewhere in the neighborhood of $9 billion. read more »