Israeli Billionaire Beny Steinmetz Detained in Investigation

The billionaire Beny Steinmetz was detained by the Israeli police on Monday morning for questioning in connection with an investigation into money laundering, obstruction of justice and bribery, officials said.

Mr. Steinmetz, an Israeli diamonds, mining and real estate magnate, is already under scrutiny by law enforcement authorities in four other countries, including the United States. Federal prosecutors in the United States are investigating whether representatives of his firm bribed government officials in Guinea to secure a multibillion-dollar mining deal. In Switzerland and Guinea, prosecutors have conducted similar inquiries. He was previously detained and questioned in Israel in December.

Since 2013, the United States Justice Department has been investigating Mr. Steinmetz’s company, BSG Resources, over potential violations of the Foreign Corrupt Practices Act. The Guinean government has claimed that BSG Resources obtained an iron ore mining concession by paying more than $8 million in cash through a representative to the then-wife of the country’s president. read more »

Government fraud case against Huntington Ingalls settles for $9.2 million

Huntington Ingalls Industries Inc., the parent company of Ingalls Shipbuilding in Pascagoula, has settled a whistleblower lawsuit with the federal government by agreeing to pay a total of $9.2 million for over billing labor costs on U.S. Navy and Coast Guard ships dating back to 2003.

"Corruption, fraud and bribery are not victimless crimes,” Mike Wiest, a special agent with the Naval Criminal Investigative Service, said in a news release from the U.S. Justice Department. “Overcharging for work not done is not only criminal on its face, investigating those crimes siphoned resources and time, which would have been better invested in protecting the nation. read more »

Scuba supply company pays $16 million to settle allegations it defrauded the military

A Virginia Beach company that supplies advanced equipment for the U.S. military’s search-and-rescue operations has agreed to pay $16 million to settle allegations that it fraudulently obtained government contracts and engaged in illegal bid-rigging schemes, the Justice Department announced Thursday.

The Justice Department said the settlement resolves the government’s claims against the company, ADS, closing the matter without making a determination of who might be liable. read more »

Uber Settles U.S. Claims of Deceiving Consumers About Privacy

Uber Technologies Inc. agreed to settle U.S. claims that the ride-sharing company deceived consumers by failing to monitor employee access to personal information and by failing to reasonably secure sensitive data.

Uber has agreed to implement a privacy program and obtain regular, independent audits, the Federal Trade Commission said in a statement Tuesday. As a result of Uber’s actions, the FTC said, an intruder was able to access personal information about company drivers in May 2014, including more than 100,000 names and driver’s license numbers.

“This case shows that, even if you’re a fast growing company, you can’t leave consumers behind: you must honor your privacy and security promises,” FTC Chairwoman Maureen Ohlhausen said.

According to the agency, Uber developed an automated system in 2014 for monitoring employee access to consumer personal information, but stopped using it less than a year after it was put in place. The FTC also said that despite Uber’s claim that data were securely stored within its databases, Uber’s security practices failed to provide reasonable security to prevent unauthorized access. read more »

Commonwealth Bank Chief to Quit Amid Money-Laundering Scandal

The chief executive of one of Australia’s biggest banks will resign next year, as the lender struggles with accusations that criminals used its cash machines to launder nearly $35 million.

Catherine Livingstone, chairwoman of Commonwealth Bank of Australia, said in a news release that Ian Narev, 50, who started as chief in December 2011, would step down and had agreed that it was “important for the business that we deal with the speculation and questions about his tenure.”

Mr. Narev had been heavily criticized over the case. The bank was accused this month of failing to report more than 53,000 “serious and systemic” breaches of antimoney laundering laws that involved at least four criminal syndicates and more than 44 million Australian dollars. read more »