Deutsche Bank’s London Subsidiary Sentenced for Manipulation of LIBOR

DB Group Services (UK) Limited (DBGS), a wholly owned subsidiary of Deutsche Bank AG (Deutsche Bank), was sentenced today for its role in manipulating London Interbank Offered Rates (LIBOR) for U.S. Dollar and several other currencies.  LIBOR is a leading benchmark used in financial products and transactions around the world.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division and Assistant Director in Charge Andrew W. Vale of the FBI’s Washington Field Office made the announcement.

DBGS was sentenced by U.S. District Judge Stefan R. Underhill of the District of Connecticut. DBGS pleaded guilty on April 23, 2015, to one count of wire fraud for its role in manipulating LIBOR benchmark interest rates. DBGS signed a plea agreement with the government in which it admitted its criminal conduct and agreed to pay a $150 million fine. read more »

The Rolls-Royce Treatment: Global Bribery Demands Global Resolutions

$800 Million Combined Penalty is Roughly Equal to Expected 2016 Profits

International anti-corruption enforcement has never been more coordinated, aggressive or costly. Last year was a record-breaking year for global enforcement, and – simply based on the number of cases in the pipeline – business leaders can expect heightened enforcement to continue in 2017 and beyond. Already-announced 2017 resolutions, including the recent Rolls-Royce, PLC resolution lend an important lesson for executives: global anti-corruption enforcement is here to stay. 

Wells Fargo to pay $110 million to settle fake account suit

Wells Fargo has agreed to pay $110 million to settle a class-action lawsuit over up to 2 million accounts its employees opened for customers without getting their permission, the bank announced Tuesday.

It’s the first private settlement that Wells has reached since the company paid $185 million to federal and California authorities late last year. Authorities said bank employees, driven by high-pressure sales tactics, opened the bank and credit card accounts without customer authorization. read more »

Justice Department Joins Second Lawsuit Against UnitedHealth

The Justice Department has joined a California whistleblower's lawsuit that accuses insurance giant UnitedHealth Group of fraud in its popular Medicare Advantage health plans.

Justice officials filed legal papers to intervene in the suit, first brought by whistleblower James Swoben in 2009, on Friday in federal court in Los Angeles. On Monday, they sought a court order to combine Swoben's case with that of another whistleblower.

Swoben has accused the insurer of "gaming" the Medicare Advantage payment system by "making patients look sicker than they are," said his attorney, William K. Hanagami. He said the combined cases could prove to be among the "larger frauds" ever against Medicare, with damages that he speculates could top $1 billion. read more »

Investor burned by Madoff leaps to death from luxury hotel balcony

A hedge-fund executive who lost millions in Bernie Madoff’s infamous Ponzi scheme jumped to his death from the luxury Sofitel New York Hotel on Monday afternoon, authorities said.

Charles Murphy, 56, whose fund at Fairfield Greenwich invested more than $7 billion with Madoff, leaped from a room he had rented on the 24th floor around 4:42 p.m. and landed on a fourth-floor terrace, according to police sources.

The financier was at the helm of the prestigious hedge fund when the firm poured billions into Madoff’s coffers.

Fairfield lost nearly $50 million when Madoff’s scam imploded. read more »