SEC Awards Almost $4 Million to Overseas Whistleblower

The Securities and Exchange Commission today announced that it has awarded nearly $4 million to an overseas whistleblower whose tip led it to open an investigation and whose extensive assistance helped it bring a successful enforcement action.

“Whistleblowers, whether they are located in the U.S. or abroad, provide a valuable service to investors and help us stop wrongdoing,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “This award recognizes the continued, important assistance provided by the whistleblower throughout the course of the investigation.” read more »

Danske Bank whistleblower was former Baltics trading head

The internal whistleblower who helped reveal alleged money laundering at Danske Bank’s (DANSKE.CO) Estonian branch was Howard Wilkinson, a former head of its trading business in the Baltics, Danish newspaper Berlingske reported on Wednesday.

Danske Bank’s CEO resigned last week after an inquiry revealed that 200 billion euros ($235 billion) of payments, many of which the bank said were suspicious, had been moved through its Estonian branch over a period of eight years. read more »

When Banks Won’t Stop Money Laundering, What Can the Government Do?

Danske is certainly not the first major bank to have money laundering or other illegal transactions flourish for years, seemingly beyond the purview of top management.

In 2012, HSBC agreed to a deferred prosecution settlement with the Justice Department and forfeited $1.256 billion for failing to maintain controls that would have prevented drug dealers from laundering hundreds of millions of dollars. Yet no individuals at the bank were prosecuted, despite claims from federal prosecutors that the conduct involved “stunning failures of oversight — and worse.” read more »

SEC Charges Former CEO of Chilean-Based Chemical and Mining Company With FCPA Violations

The Securities and Exchange Commission today announced that the former CEO of Chilean-based chemical and mining company Sociedad Química y Minera de Chile, S.A. (SQM) has agreed to pay $125,000 to resolve charges that he violated the Foreign Corrupt Practices Act (FCPA).

According to the SEC’s order, over the course of seven years, SQM’s then-CEO Patricio Contesse González caused SQM to make nearly $15 million in improper payments to Chilean political figures and others connected to them.  Last year, SQM paid $30 million to settle parallel civil and criminal charges against the company. read more »

Hospital Chain Will Pay Over $260 Million to Resolve False Billing and Kickback Allegations; One Subsidiary Agrees to Plead Guilty

Health Management Associates, LLC (HMA), formerly a U.S. hospital chain headquartered in Naples, Florida, will pay over $260 million to resolve criminal charges and civil claims relating to a scheme to defraud the United States.  The government alleged that HMA knowingly billed government health care programs for inpatient services that should have been billed as outpatient or observation services, paid remuneration to physicians in return for patient referrals, and submitted inflated claims for emergency department facility fees.

The allegations resolved by the settlement were originally brought in eight lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery.  read more »