FIFA Publishes Secret Garcia Report, Which Detailed Corruption in World Cup Bids

FIFA on Tuesday published an American investigator’s top-secret report into the bidding for the 2018 and 2022 World Cups, acting, it said, “for the sake of transparency.” The decision to publish the report, which had been kept secret for more than two years and detailed bribes and vote-trading in the bidding process, came a day after a German newspaper revealed that it had obtained a copy and planned to publish the report’s details. read more »

Deutsche Bank Faces Possible $60 Million Derivative Loss

Deutsche Bank AG, the German lender seeking to overhaul how it manages risks, made a bet on U.S. inflation that puts the firm on course to lose as much as $60 million, people familiar with the matter said.

The trade used derivative products tied to U.S. inflation, said the people, who requested anonymity because the details aren’t public. The Frankfurt-based lender has been examining whether Deutsche Bank traders breached risk limits on the deal, some of the people said. The case has been escalated to the bank’s supervisory board, one person said.

Such a loss would be a setback for Chief Executive Officer John Cryan, who has been trying to improve the lender’s risk and operational controls that have drawn scorn from regulators around the world. A risk limit violation could indicate a weakness in the bank’s oversight of its traders in a business that earned about $270 million in the first quarter. Just two months ago, the Federal Reserve fined the firm for failing to ensure that traders abide by the Volcker Rule, a U.S. law that restricts lenders from using their own funds to make speculative trades. read more »

Lloyds fraud victims bemoan 'pyrrhic victory' as compensation scheme drags

Lloyds Banking Group is set to miss an end-June deadline for offering compensation to victims of one of Britain's largest fraud cases, the latest delay in a decade-long struggle by business owners for redress.

Two former bankers at Lloyds' HBOS Reading business were among those jailed in February for their involvement in the scam, which affected 64 people, including Noel Edmonds, a TV presenter and former disc jockey.

Lloyds set up a 100 million pound ($128 million) compensation scheme in April and set the end-June deadline for payment to victims hit by the fraud, which involved siphoning off money from struggling businesses.

According to one source with knowledge of the matter, less than a fifth of the 64 victims have received compensation offers and only one has reached a settlement with the bank. read more »

Whistleblower sues Washington area’s largest charitable organization

For the second time in a year, the Community Foundation of the National Capital Region is in the spotlight — but not for its philanthropy.

In September, the charitable-fund manager came under fire for its oversight of CharityWorks, a local organization that spent millions on lavish fundraising events but failed to deliver grants promised to local nonprofit groups. Now, a longtime foundation accountant is suing her former employer, claiming that she was fired after reporting misuse of donor funds, including the CharityWorks fund; violations of IRS guidelines; and forgery.

Adrienne Brown, who worked at the foundation for 12 years, says that she was terminated in March after voicing concerns about the improper use of donations — even though the foundation, according to the lawsuit, has a whistleblower policy that requires employees to comply with all applicable laws and regulations and “imposes an affirmative obligation on employees to report actual or suspected violations.” read more »

California moves forward on letting customers sue banks, inspired by Wells Fargo

California took another step on Tuesday toward allowing state residents to sue financial institutions for fraud, rather than letting banks force customers to settle disputes in arbitration, as a bill inspired by last year's Wells Fargo scandal passed a key Assembly committee.

The bill has already passed the state Senate. The full Assembly, the legislature's lower chamber, is expected to approve it in a vote toward the end of August, after the summer recess.

Under the bill, judges could override contract clauses that require customers to settle disputes through arbitration in cases where a bank commits fraud using customers' personal information. Arbitration clauses, which have become standard practice since a 2011 U.S. Supreme Court decision, make consumers agree not to sue in the future as a condition of purchasing products or services. read more »

Florida Man Tied to Global Hacking Scam Gets 5 1/2 Years

A Florida man was sentenced to 5 1/2 years in prison for running a bitcoin exchange that is suspected of laundering money for a group of hackers who targeted publishing and financial firms as part of a complex securities fraud.

Anthony Murgio, 33, admitted in January that he ran Coin.mx for Gery Shalon, the self-described founder of a sprawling criminal enterprise that hacked at least nine companies including JPMorgan Chase & Co., E*Trade Financial Corp. and Dow Jones & Co. Prosecutors said the unregistered business sold bitcoins that were used in illegal online transactions and as payment in ransomware attacks. read more »