Article: After JPMorgan Chase Admits to Its 4th and 5th Felony Charge, Its Board Gives a $50 Million Bonus to Its CEO, Jamie Dimon

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After JPMorgan Chase Admits to Its 4th and 5th Felony Charge, Its Board Gives a $50 Million Bonus to Its CEO, Jamie Dimon

Pam Martens and Russ Martens, 23 July 2021

The unthinkable is happening with alarming regularity at the Frankenbank JPMorgan Chase. Over the last seven years, with Chairman and CEO Jamie Dimon at the helm, JPMorgan Chase has managed to do what no other federally-insured American bank has managed to do in the history of banking in the United States. The bank has admitted to five separate felony countsbrought by the U.S. Department of Justice, while regulators took no action to remove the Board of Directors or Jamie Dimon.

Now, once again, the outrageous hubris of this Board is on display. Just last fall the bank forked over $920 million of shareholders moneyto settle its fourth and fifth felony counts brought by the Department of Justice, this time for rigging the precious metals and U.S. Treasury market. Now, in the dog days of summer, rarely a time for bonuses on Wall Street, the Jrgan Chase board announced on July 20 that it is giving Dimon 1.5 million stock options which, according to a specialist cited at Bloomberg News, have a total value of $50 million on paper.

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Article: RSF man dealt $337 million fraud, DOJ says

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RSF man dealt $337 million fraud, DOJ says

Special to The Grapevine, 10 July 2021

The United States District Court for the Northern District of California this week unsealed an indictment returned by a federal grand jury in San Francisco charging Rancho Santa Fe resident Racho Jordanov with conspiracy to commit trade secret theft and wire fraud, international money laundering, and related charges including obstruction of justice.

Jordanov was the co-founder and former Chief Executive Office of JHL Biotech. He was charged along with Rose Lin, another of the company’s co-founders and former Chief Operating Officer Continue reading “Article: RSF man dealt $337 million fraud, DOJ says”

Article: DOJ Casts the FCPA Spotlight on Brazil-Related Enforcement

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DOJ Casts the FCPA Spotlight on Brazil-Related Enforcement

Kevin Roberts, Lex Urban, Duncan Grieve, Stephen Weiss, 12 June 2021

On May 25, 2021, the U.S. Department of Justice (“DOJ”) unsealed an indictment charging two Austrian citizens, Peter Weinzierl (“Weinzierl”) and Alexander Waldstein (“Waldstein”), for their roles in a scheme to launder hundreds of millions of dollars through the U.S. financial system on behalf of the Brazilian construction conglomerate, Odebrecht S.A. (“Odebrecht”). The indictment alleges that Weinzierl and Waldstein helped Odebrecht funnel money to offshore accounts to pay bribes to government officials in Brazil, Panama, and Mexico. The announcement was timed to coincide with the arrest of Weinzierl in the United Kingdom; however, Waldstein remains at large.

This enforcement action is notable for a number of reasons:

(1) DOJ has used U.S. money laundering statutes to charge Weinzierl and Waldstein with bribery-related misconduct because both individuals likely fall outside of the ambit of the Foreign Corrupt Practices Act (“FCPA”); Continue reading “Article: DOJ Casts the FCPA Spotlight on Brazil-Related Enforcement”

Article: Bolivia’s Ex Minister Charged in Bribery and Money Laundering Scheme

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Bolivia’s Ex Minister Charged in Bribery and Money Laundering Scheme

ISOBEL VAN HAGEN, 28 May 2021

Bolivia arrested its former interior minister earlier this week over an alleged bribery and money laundering scheme that enabled a U.S.-based company to secure a government contract, the U.S. Department of Justice announced on Wednesday.

Arturo Murillo, along with another former Bolivian official, Sergio Rodrigo Mendez, are accused of receiving bribes from a Florida-based company and later using the American financial system to launder those bribes. Three U.S. citizens were also charged in the scheme, which took place between November 2019 and April 2020. They were arrested in Florida and Georgia. Continue reading “Article: Bolivia’s Ex Minister Charged in Bribery and Money Laundering Scheme”

Article: Senators Call For Investigation Into Packer Market Manipulation

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Senators Call For Investigation Into Packer Market Manipulation

wnax, 21 May 2021

Senators Mike Rounds of South Dakota and Tina Smith of Minnesota are asking Attorney General Merrick Garland to examine whether the control large meatpackers have over the beef processing market violates U.S. antitrust laws and principles of fair competition. They wrote a letter to the AG this week and are inviting all members of Congress to join them. This isn’t the first investigation on this issue, but Rounds says both producers and consumers are at the center of this examination.

Two similar DOJ investigations are still underway with no results. However, Senator Rounds says they have evidence those are moving forward and are calling for action from the AG’s office if there is proof of wrongdoing. He thinks there is a better chance of getting some action under this AG and administration. Continue reading “Article: Senators Call For Investigation Into Packer Market Manipulation”

Article: Meat Institute Responds to DOJ Investigation Calls into Cattle Market

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Meat Institute Responds to DOJ Investigation Calls into Cattle Market

NAFB News Service, 19 May 2021

The North American Meat Institute this week defended its members against allegations of wrongdoing in the cattle market.

The response follows a closed-door meeting between livestock and farm groups focusing on ways to improve cattle market transparency and a letter from Republican lawmakers to the Department of Justice. The lawmakers requested DOJ continue its investigation regarding cattle market manipulation. Continue reading “Article: Meat Institute Responds to DOJ Investigation Calls into Cattle Market”

Article: How to Actually Prosecute the Financial Crimes of the Very Rich

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How to Actually Prosecute the Financial Crimes of the Very Rich

PAUL E. PELLETIER, 19 May 2021

It was tax season 1999. I was a federal economic-crimes prosecutor in Miami, and this was the time of year my colleagues and I brought cases to deter would-be tax cheats. My target was a tax-return preparer operating out of Liberty City’s “Pork & Beans” projects, made famous in the movie Moonlight. This tax preparer had been manufacturing false W-2s and Social Security numbers so that her clients would receive an earned-income tax credit to which they weren’t entitled—amounting to more than $100,000 in bogus refunds. She eventually pleaded guilty and spent nearly three years in prison, which at the time I considered a broadly just result. She had committed a real crime against the United States. Continue reading “Article: How to Actually Prosecute the Financial Crimes of the Very Rich”

Article: New York Man Pleads Guilty to Fentanyl and Heroin Trafficking

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New York Man Pleads Guilty to Fentanyl and Heroin Trafficking

Department of Justice, 07 May 2021

BOSTON – A New York man pleaded guilty today in federal court in Boston to heroin and fentanyl possession and distribution charges.

James De La Cruz, 30, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin and 400 grams or more of fentanyl and one count of possession with intent to distribute one kilogram or more of heroin and 400 grams or more of fentanyl. U.S. District Judge Richard G. Stearns scheduled sentencing for Oct. 6, 2021. Continue reading “Article: New York Man Pleads Guilty to Fentanyl and Heroin Trafficking”

Article: He promised to turn dirt into gold. He got millions of dollars — and prison time

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He promised to turn dirt into gold. He got millions of dollars — and prison time

Amanda Jackson, CNN, 26 April 2021

(CNN) — A Utah man promised investors his business could turn dirt into gold and swindled millions of dollars from them over several years, according to federal officials. Now, he has been sentenced to prison for his role in an $8 million telemarketing fraud scheme.

Marc Tager, 55, is the latest defendant to be sentenced in the scam that started in 2014, according to the Department of Justice. On April 14, he was sentenced to 43 months in federal prison for conspiracy to commit wire and mail fraud, money laundering and possession of a firearm by a convicted felon. Continue reading “Article: He promised to turn dirt into gold. He got millions of dollars — and prison time”

Article: JPMorgan forced out trader who cooperated with fed probe: lawsuit

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JPMorgan forced out trader who cooperated with fed probe: lawsuit

Kathianne Boniello, 17 April 2021

JPMorgan Chase treated indicted employees better than an executive who cooperated with federal investigators, according to a lawsuit.

Commodities trader Donald Turnbull claims in court papers he was abruptly canned from the bank’s precious metals trading group as soon as JPMorgan execs discovered the extent of his cooperation with the U.S. Department of Justice. Continue reading “Article: JPMorgan forced out trader who cooperated with fed probe: lawsuit”

Article: CFTC Obtains Another Guilty Plea of Market Manipulation, Makes Criminal Referral

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CFTC Obtains Another Guilty Plea of Market Manipulation, Makes Criminal Referral

Levi McAllister, Patrick R. Pennella, 31 March 2021

The Commodity Futures Trading Commission (CFTC) announced last week that it has obtained another admission from a trader of violations of the Commodity Exchange Act and CFTC regulations, demonstrating its continued aggressive enforcement of its market anti-manipulation provisions.

Emilio José Heredia Collado (Heredia) of Lafayette, California, admitted to engaging in the manipulation of a US price-assessment benchmark relating to physical fuel oil products for more than four years while employed as a fuel oil trader for a trading company. The CFTC imposed a permanent ban from trading commodity interests or engaging in other related activities and a $100,000 civil monetary penalty and made a criminal referral to the US Department of Justice. Continue reading “Article: CFTC Obtains Another Guilty Plea of Market Manipulation, Makes Criminal Referral”

Article: What the FBI wants you to know about elder fraud schemes following arrest of ‘Real Housewives’ star

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What the FBI wants you to know about elder fraud schemes following arrest of ‘Real Housewives’ star

Erin Coulehan, 31 March 2021

EL PASO, Texas (KTSM) — It might look like the women from Bravo’s “Real Housewives” franchises have it all, but a recent arrest of one star is shedding light on criminal schemes across the country.

The FBI El Paso is warning Borderland residents to beware of elder fraud that targets people over the age of 60 to give their money to scammers seeking to defraud the elderly population.

On Tuesday, “Real Housewife of Salt Lake City” star Jen Shah and her first assistant, Stuart Smith, were arrested and indicted for defrauding elder and tech-illiterate adults using telemarketing schemes, like disrupting and annoying robocalls that many cellphone users regularly receive. Continue reading “Article: What the FBI wants you to know about elder fraud schemes following arrest of ‘Real Housewives’ star”

Article: Vegas Sands Probes Money-Laundering Safeguards at Singapore Unit

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Vegas Sands Probes Money-Laundering Safeguards at Singapore Unit

Chanyaporn Chanjaroen,  29 March 2021

Las Vegas Sands Corp. set up a special committee to look into potential breaches of anti-money laundering procedures at its Singapore casino, which has already been the target of probes by U.S. officials and local police.

The committee of three independent board members is reviewing money transfers among high-rollers and third parties at Marina Bay Sands, as well as any possible retaliation against whistle blowers, according to people familiar with the matter. U.S. law firm Vinson & Elkins LLP has been hired to assist with the review, according to the people, who asked not to be identified because of the confidentiality involved.

Las Vegas Sands declined to comment. Continue reading “Article: Vegas Sands Probes Money-Laundering Safeguards at Singapore Unit”

Article: Las Vegas Sands probes potential money-laundering breaches at Singapore’s Marina Bay Sands casino

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Las Vegas Sands probes potential money-laundering breaches at Singapore’s Marina Bay Sands casino

Bloomberg,  29 March 2021

Las Vegas Sands Corp. set up a special committee to look into potential breaches of anti-money-laundering procedures at its Singapore casino, which has already been the target of probes by US officials and local police.

The committee of three independent board members is reviewing money transfers among high rollers and third parties at Marina Bay Sands, as well as any possible retaliation against whistle-blowers, according to people familiar with the matter.

US law firm Vinson & Elkins LLP has been hired to assist with the review, according to the people, who asked not to be identified because of the confidentiality involved. Las Vegas Sands declined to comment. Continue reading “Article: Las Vegas Sands probes potential money-laundering breaches at Singapore’s Marina Bay Sands casino”

Article: FinCEN’s $390 Million Case Against Capital One – And What It Means For AML Enforcement

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FinCEN’s $390 Million Case Against Capital One – And What It Means For AML Enforcement

Seetha Ramachandran and Hena Vora,  29 March 2021

As the financial services industry prepares for expanded criminal and civil enforcement under the Bank Secrecy Act (“BSA”) with the passage of the Anti-Money Laundering Act of 2020, FinCEN’s recent case against Capital One shows how FinCEN’s approach to AML enforcement is evolving.

On January 15, 2021, FinCEN assessed a $390 million civil money penalties against Capital One for violations of the BSA related to Capital One’s Check Cashing Group (the “CCG”). CCG is a business unit under Capital One’s commercial bank through which Capital One provides banking services including processing checks and providing customers with armored car cash shipments. In issuing its decision, FinCEN determined that, between 2008 and 2014, Capital One’s CCG failed to report millions of dollars in suspicious transactions. Specifically, FinCEN found that Capital One: Continue reading “Article: FinCEN’s $390 Million Case Against Capital One – And What It Means For AML Enforcement”