Wells Fargo Forced Unwanted Auto Insurance on Borrowers

More than 800,000 people who took out car loans from Wells Fargo were charged for auto insurance they did not need, and some of them are still paying for it, according to an internal report prepared for the bank’s executives.

The expense of the unneeded insurance, which covered collision damage, pushed roughly 274,000 Wells Fargo customers into delinquency and resulted in almost 25,000 wrongful vehicle repossessions, according to the 60-page report, which was obtained by The New York Times. Among the Wells Fargo customers hurt by the practice were military service members on active duty.

Wells Fargo, one of the largest banks in the United States, is struggling to repair its image after a scandal in which its employees created millions of credit card and bank accounts that customers had never requested. That crisis, which came to a head last year, toppled Wells Fargo’s chief executive and led to millions of dollars in fines. read more »

What may lie in wait for SAP & McKinsey: A Net1-like 4-yr US DOJ probe

More than four years after launching a probe into Net1 UEPS Technologies, the US Department of Justice has finally closed its investigations into alleged corruption at the company. At this stage, the DOJ – in a letter to Net1 – has said that it’s closed its investigation into possible violations of the Foreign Corrupt Practices Act. The DoJ has said it may reopen the case if more evidence comes to light, but Net1 is off the hook, at least for now. The investigation highlights what global software firm SAP and consulting firm McKinsey & Company may have to endure regarding their recent business practices in South Africa. read more »

Banks must face interest rate swap class action -U.S. judge

U.S. District Judge Paul Engelmayer in Manhattan said 11 of the banks, including Bank of America Corp and JPMorgan Chase & Co, must defend against claims that from 2013 to 2016 they boycotted three upstart electronic platforms for swaps trading, hoping to destroy them.

Investors seeking damages in the proposed class action said banks did this to preserve their 70 percent market share, and boost profit by making trading more costly. read more »

Bitcoin Site Fined $110 Million for Money Laundering, Owner Arrested for Hacking

One of the oldest digital currency exchanges, known as BTC-e, remained off-line following a one-two punch by law enforcement over a series of allegedly criminal acts by the site and its owner.

On Wednesday, the U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) announced a $110 million fine against BTC-e for facilitating crimes like drug sales and ransomware attacks along with a separate $12 million fine against its owner, Alexander Vinnik.

BTC-e is headquartered in Russia and has long served as a forum where users can exchange traditional currencies for bitcoin or other digital monies like Ethereum or Dash.

Meanwhile on Wednesday, the U.S. Justice Department also filed a series of criminal charges, including conspiracy and money laundering, against Vinnik after snatching him up in Greece. read more »

Nawaz Sharif, Pakistan’s Prime Minister, Toppled by Corruption Case

Nawaz Sharif, the tycoon and party leader who helped define a turbulent era of Pakistani politics, stepped down as prime minister on Friday after the Supreme Court ruled that corruption allegations had disqualified him.

Coming with less than a year to go in his term, his ouster adds to a grim and long list of civilian governments cut short in Pakistan — including two of his own previous terms as prime minister. And it will further roil the country’s tumultuous political balance, as his rivals vie to exploit his fall.

The charges against Mr. Sharif and three of his children — two sons and a daughter — stemmed from disclosures last year in the Panama Papers leak. Those documents revealed that the children owned expensive residential property in London through offshore companies. read more »