Article: Bank Julius Baer Agrees to Pay More than $79 Million for Laundering Money in FIFA Scandal

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Bank Julius Baer Agrees to Pay More than $79 Million for Laundering Money in FIFA Scandal

Department of Justice, 27 May 2021

Bank Julius Baer & Co. Ltd. (BJB or the Bank), a Swiss bank with international operations, has admitted today in federal court in Brooklyn that it conspired to launder over $36 million in bribes through the United States to soccer officials with the Fédération Internationale de Football Association (FIFA) and other soccer federations, in furtherance of a scheme in which sports marketing companies bribed soccer officials in exchange for broadcasting rights to soccer matches. The proceeding was held before U.S. District Judge Pamela K. Chen.

The Bank made these admissions and entered into a three-year deferred prosecution agreement with the department in connection with a criminal information filed today in the Eastern District of New York charging the Bank with conspiring to commit money laundering. As part of this agreement, the Bank has agreed to pay more than $79 million in penalties (including a fine of $43,320,000 and forfeiture of $36,368,400) to resolve the investigation into its involvement in a money laundering conspiracy that fueled this international soccer bribery scheme. Continue reading “Article: Bank Julius Baer Agrees to Pay More than $79 Million for Laundering Money in FIFA Scandal”

Article: German Attorney Pleads Guilty to Money Laundering

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German Attorney Pleads Guilty to Money Laundering

Eastern District of New York, 24 March 2021

Earlier today, at the federal courthouse in Brooklyn, Henning Schwarzkopf, a citizen of Germany and an attorney licensed to practice in Germany, pleaded guilty before United States Magistrate Judge Ramon E. Reyes, Jr., to money laundering by transferring funds that he believed to be the proceeds of a securities fraud scheme through the bank account of a Hong Kong shell company controlled by the defendant. Schwarzkopf was arrested on a criminal complaint in October 2020. When sentenced, Schwarzkopf faces up to 20 years in prison, as well as forfeiture and a fine of up to $250,000.

Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea. Continue reading “Article: German Attorney Pleads Guilty to Money Laundering”

Article: Deutsche Bank Reaches $100 Million Deferred-Prosecution Deal

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Deutsche Bank Reaches $100 Million Deferred-Prosecution Deal

Bloomberg, 08 January 2021

Deutsche Bank AG agreed to pay more than $130 million to settle criminal and civil charges that it bribed foreign officials and manipulated the market for precious-metals futures through a trading tactic known as spoofing. The Frankfurt-based bank agreed to a deal in which it won’t be prosecuted as long as it doesn’t engage in the practices again for more than three years, and wasn’t required to spoofing. Big banks have been rushing to conclude legal deals before the change of U.S. administrations, partly out of concern that there may be stiffer fines under a Democratic president. Three top U.S.-based banks agreed to pay more than $4 billion in settlements announced just before the November election, on issues ranging from bribery to market manipulation. Continue reading “Article: Deutsche Bank Reaches $100 Million Deferred-Prosecution Deal”

Article: How ex-JP Morgan silver trader’s guilty plea could boost manipulation claim against bank

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How ex-JP Morgan silver trader’s guilty plea could boost manipulation claim against bank

Dawn Giel, Dan Mangan, 13 November 2018

A previously secret guilty plea by a former commodity trader at J. P. Morgan Chase, who admitted that he rigged precious metals markets, has drawn the attention of a lawyer who has already accused traders at the nation’s largest bank of similar conduct.

The lawyer, David Kovel, told CNBC he was struck by how much in common his civil case pending in New York federal court against J. P. Morgan Chase has with the conduct outlined in the ongoing criminal case in Connecticut against John Edmonds.

Edmonds, a 36-year-old Brooklyn resident, pleaded guilty in October to fraudulently manipulating the precious metals markets from 2009 to 2015.

He admitted working with “unnamed co-conspirators” at his former employer, J. P. Morgan, the Justice Department made public Nov. 6, when it unsealed the case in U.S. District Court in Connecticut.

Edmonds’ criminal plea related to “spoofing,” a certain type of improper trading that has been the subject of a broader regulatory crackdown on market manipulation in the decade since the 2008 financial crisis.

So far this year, the Commodity Futures Trading Commission has announced 26 enforcement actions that involved market manipulation, attempted manipulation, false reporting, spoofing or deceptive conduct. That is more than double the number in 2017 — and six times that in 2016.

Prosecutors said Edmonds learned the deceptive strategy “from more senior traders” at the bank, and that he “personally deployed this strategy hundreds of times with the knowledge and consent of his immediate supervisors.” His guilty plea related specifically to trading in silver futures contracts, as well as in gold, platinum and palladium futures.

Nearly four years ago, Kovel sued J. P. Morgan on behalf of a colorful hedge fund operator and big-stakes poker player, Daniel Shak, and two metals traders, Mark Grumet and Thomas Wacker. The civil lawsuit accused J. P. Morgan of manipulating the silver futures market from 2010 through 2011, costing Kovel’s clients $30 million in losses.

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Article: A Vor Never Sleeps

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A Vor Never Sleeps

Razhden Shulaya maintained a diverse business empire, like a Warren Buffet of crime. By age 40, from his base in Brighton Beach, Brooklyn, he had a cigarette smuggling operation, a drug ring, a counterfeit credit card scheme, an extortion racket, an illegal gambling establishment, and teams devoted to hacking slot machines.

According to prosecutors who have been building a case against him, Shulaya’s associates provided gun-running, kidnap-for-hire, and the fencing of stolen jewelry. Plans were in place for what authorities came to call the “romance scam”: use an attractive woman to lure a target down to Atlantic City, knock him out with chloroform, and steal his money. They’d take his Rolex, too.

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