eCorporate Compliance News
(eCCN)
Subscribe to eCCN and stay abreast of the latest in compliance news.
Each week we scour the major news sources and summarize the top
compliance-related stories for you. We keep you informed and save
you hours of reading. Each news story contains a link to its source, if
you need a more in-depth look. This news service is not available
anywhere else!
Stories in this weeks
eCCN
Click here for the current issue of eCCN
Archived stories: last
90 days, 90
days to 1 year |
|
|
New Wave of Whistle-Blowers Could Be
Millionaires
On July 27, 2010, USA Today reported, “Harry Markopolos,
call your office. Under little-noticed new provisions of the Dodd-Frank
Wall Street reform law, whistle-blowers like Markopolos who alerted the
SEC to Bernard Madoff's Ponzi scheme will for the first time be entitled
to collect between 10% and 30% of the money recovered by the government.
And that could turn a new wave of whistle-blowers, those insiders with
proof of financial wrongdoing on Wall Street, into
millionaires.”
More: http://www.usatoday.com/money/companies/management/2010-07-27-cnbc-whistle-blowers_N.htm
Back
|
|
Schapiro Warns Against Financial Reform
Re-Debate
On July 28, 2010, Reuters reported, “The top U.S. securities regulator
said regulatory rule-writing should not be used to re-debate the
financial reforms Congress just passed, but pledged an open process.
U.S. Securities and Exchange Commission Chairman Mary Schapiro told a
Chamber of Commerce event on Tuesday that the SEC will be seeking public
comment, even before it formally puts out proposals on topics such as
over-the-counter derivatives, and fiduciary standards for brokers.
“Schapiro struck a cooperative tone with the chamber, which
spent millions of dollars to fight Democrats as they debated the tougher
financial regulations that were signed into law last week as the
Dodd-Frank Act. But she warned against efforts to undermine the
legislation.”
More: http://www.reuters.com/article/idUSTRE66Q3KY20100727
Back
|
|
With Dell’s SEC Settlement, Charges
Against Intel Loom
On July 23, 2010, CNN Money reported, “Thursday's $100
million settlement between Dell and the Securities and Exchange
Commission was a reminder that the government is going after tech's bad
boys -- and Intel is likely next on the feds' list. According to the
SEC's complaint against Dell, Intel paid the computer maker rebates as
part of a deal in which Dell agreed not use microchips manufactured by
Intel's rival AMD. We're not talking small change: The payments totaled
$4.3 billion between 2003 and 2006.
“That's actually not what landed Dell in hot water. Instead,
Dell was charged with defrauding its investors by pretending that those
payments were operating income. The maneuver artificially inflated
Dell's balance sheet and helped it beat Wall Street's earnings estimates
for four years. But Intel's naughty behavior continues to be the subject
of a separate Federal Trade Commission antitrust investigation, parts of
which were used in the SEC's case against Dell.”
More: http://money.cnn.com/2010/07/23/technology/dell_intel/
Back
|
|
Hackers’ Massive Check Fraud Operation
Revealed
On July 28, 2010, eWeek reported,
“Cyber-criminals are using a complex, innovative scheme to commit
widespread check forgery. According to research by SecureWorks revealed
at Black Hat, the ring has counterfeited an estimated $9 million in
checks in the last year. A three-month investigation by SecureWorks has
uncovered an innovative check fraud operation that is estimated to have
counterfeited $9 million in checks in the past year.
“Gone are the days when thieves had to use low-tech methods
such as check kiting to defraud banks. According to SecureWorks, a group
of Russian cyber-criminals are using a mix of malware, money mules and
SQL injection to get their hands on data from check image
repositories run by services that archive checks on behalf of
businesses.”
More: http://www.eweek.com/c/a/Security/Massive-Check-Fraud-Operation-Run-by-Hackers-Revealed-at-Black-Hat-762787/
Back
|
|
EU Opens Antitrust Probe of IBM Mainframe
Business
On July 26, 2010, Reuters reported, “European Union
competition regulators launched two anti-trust investigations against
International Business Machines Corp, suspecting it of abusing its
dominant position in the mainframe computer market. One investigation
followed complaints by emulator software vendors T3 and
TurboHercules against IBM's practices, and focuses on the U.S. computer group's alleged
tying of mainframe hardware to its mainframe operating system. The
second probe, opened on the European Commission's own initiative,
concerns alleged discriminatory behaviour towards competing suppliers of
mainframe maintenance services.”
More: http://www.reuters.com/article/idUSLDE66P18020100726
Back
|
|
Three Ex-GE Bankers Indicted in Bid-Rigging
Probe
On July 27, 2010, Bloomberg reported, “Three former
bankers with a General
Electric Co. unit that
sold investment contracts to state and local governments were indicted
for conspiring to profit at taxpayers’ expense by rigging bids,
showing the broadening scope of a Justice Department investigation of
municipal finance.
“Dominick Carollo, Steven Goldberg and Peter Grimm, all of whom
once worked for finance units of General Electric, were charged with
fraud and conspiracy, the Justice Department said. They allegedly paid
kickbacks to local government brokers, who were hired to solicit
competitive bids for investment deals, to win the bidding and increase
their profits.”
More: http://www.bloomberg.com/news/2010-07-28/three-former-general-electric-bankers-are-indicted-in-bid-rigging-inquiry.html
Back
|
|
GE to Pay $23.4M to Settle SEC Complaint in
Foreign-Bribes Case
On July 27, 2010, the Washington Post reported, “General
Electric agreed Tuesday to pay $23.4 million to settle a Securities and
Exchange Commission complaint that GE bribed Iraqi government officials
to win contracts to supply medical and water purification equipment
under the U.N. Oil for Food program.
“The SEC alleges that two GE subsidiaries and two companies the
conglomerate later acquired paid $3.6 million in kickbacks to the Iraqi
Health Ministry and Iraqi Oil Ministry for valuable contracts. The
bribes, which are illegal under the Foreign Corrupt Practices Act, came
in the form of cash, computer equipment, medical supplies and services,
the SEC said.”
More: http://www.washingtonpost.com/wp-dyn/content/article/2010/07/27/AR2010072705050.html?hpid=topnews
Back
|
|
Ex-GlobeTel CEO Sentenced in Fraud
Case
On July 26, 2010, the South Florida Business Journal reported,
“The former CEO of Fort Lauderdale-based GlobeTel
Communications Corp. was sentenced to four years behind
bars, to be followed by three years of supervised release. Timothy Huff
pleaded guilty in April to one count of conspiracy
to commit securities fraud.
“Huff and the company’s former CFO Thomas Y. Jimenez
allegedly conspired to generate fictitious revenue for the company by
creating fraudulent invoices and other documents, plus provided the
documents to the company’s independent auditors.”
More: http://www.bizjournals.com/southflorida/stories/2010/07/26/daily13.html
Back
|
|
Ex-Manager of WG Trading Pleads Guilty to
Fraud
On July 28, 2010, Bloomberg reported, “Hedge fund
manager Paul Greenwood, the general partner of WG Trading Co., plead
guilty to six charges including conspiracy and securities fraud and is
cooperating with the U.S. against his codefendant,
Steven Walsh.
“Greenwood and Walsh, his fellow manager
of WG Trading and WG Investors, were indicted last July on charges that
they conspired to defraud investors of $554 million. The U.S. said the pair schemed to
defraud investors from 1996 until their arrest in February 2009. A
prosecutor said today that Greenwood will testify against Walsh at
trial.”
More: http://www.bloomberg.com/news/2010-07-28/paul-greenwood-wg-trading-hedge-fund-manager-to-plead-guilty-to-fraud.html
Back
|
|
UK Postpones Bribery Act for Nine
Months
On July 21, 2010, NASDAQ.com reported, “The U.K.
Ministry of Justice announced Wednesday it will postpone implementation
of its Bribery Act until April 2011, a full year after it received royal
assent. The law, which bans both public and private bribery by any
company or individual with a U.K. interest and includes a corporate
criminal offense, was waiting on guidance from the Serious Fraud Office
and other regulators concerning an ‘adequate procedures’
definition that would give corporations the opportunity to defend
themselves amid a bribery accusation. That guidance was originally
expected to be handed down this month, with the law going into effect
three months later.”
More: http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201007211530dowjonesdjonline000687&title=uk-postpones-bribery-act-implementation-for-9-months
Back
|
|
Financial Overhaul Bill Marks New Regulatory
Era
On July 21, 2010, the Washington Post reported, “As much as it felt like an ending, President
Obamalaunched a new era in the relationship between Washington and
the financial world when he placed his signature Wednesday on a massive
bill to rewrite the nation's financial rules. Inside a building named
after a Republican president who championed deregulation and praised the
‘magic of the marketplace,’ the Democratic president signed
into law the most ambitious overhaul of financial regulation in
generations.”
More: http://www.washingtonpost.com/wp-dyn/content/article/2010/07/21/AR2010072100512.html
Back
|
|
Judge Approves SEC’s $550M Settlement
with Goldman Sachs
On July 20, 2010, Bloomberg reported, “The U.S.
Securities and Exchange Commission won court approval to levy a $550
million penalty against Goldman Sachs Group Inc., the largest ever
against a Wall Street firm, over claims the bank misled investors in
collateralized debt obligations linked to subprime mortgages. U.S.
District Judge Barbara Jones in Manhattan granted final approval
yesterday to a settlement between the SEC and Goldman Sachs that was
announced on July 15.”
More: http://www.bloomberg.com/news/2010-07-20/goldman-sachs-settlement-with-sec-for-550-million-approved-by-u-s-judge.html
Back
|
|
|
Trustee Seeks $3.6B from Madoff's
'Enablers’
On July 22, 2010, ABC News reported, “One of Greenwich,Connecticut'swealthiest and
most socially prominent financiers, Walter Noel, was accused today of
‘aiding, abetting, enabling and substantially participating’
inBernard Madoff's legendary Ponzi scheme. The allegations came
in a complaint filed by the Madoff Bankruptcy Trustee against Noel and
others who worked with him at the Fairfield-Greenwich investment fund,
including one of his daughters and at least two sons-in-law.
“According to the complaint, Noel and others collected more
than one billion dollars in fees while ignoring evidence of Madoff's
fraud for years and lying about their concerns to investors who lost
everything in the scam.”
More: http://abcnews.go.com/Blotter/bernie-madoff-allegations-billion-madoff-enablers/story?id=11217034
Back
|
|
E.U. Scolds Romania for Faltering on Reforms
On July 20, 2010, the New York Times reported,
“Romaniawas
publicly criticized on Tuesday as lacking in commitment to fight
corruption as the European Union released a report that also praised
Bulgaria for the growing
momentum behind its reforms. The document, from the European Commission,
detailed how Romania
and Bulgaria, which joined the
European Union in 2007, were fighting rampant fraud, corruption and
organized crime. In doing so, it outlined some of the reasons behind
doubts about whether either country was ready to become part of the
European Union, which now has 27 members.”
More: http://www.nytimes.com/2010/07/21/world/europe/21iht-union.html
Back
|
|
SEC Proposes to Tighten Rules on 12b-1 Mutual
Fund Fees
On July 22, 2010, the Washington Post reported, “Are
mutual funds overcharging investors? Securities and Exchange Commission
Chairman Mary Schapiro, in gentler terms, asked as much Wednesday as the
agency proposed new rules to govern mutual fund fees. The mutual fund
fees at issue, known as 12b-1 fees, are little-known annual charges that
SEC officials worry are making some investors pay more than they realize
to invest in mutual funds.”
More: http://www.washingtonpost.com/wp-dyn/content/article/2010/07/21/AR2010072106174.html
Back
|
|
Ex-Media Baron Conrad Black Freed From
Prison
On July 21, 2010, the New York Times reported, “A U.S.
judge on Wednesday released former media baron Conrad Black from prison
on $2 million bond, while she decides whether to throw out his 2007
conviction for defrauding shareholders. Adhering to rulings by higher
courts, trial Judge Amy St. Eve of the U.S. District Court set Black,
65, free but restricted him to the continental United
States for the time being.”
More: http://www.nytimes.com/reuters/2010/07/21/business/business-us-usa-black-release.html?_r=1&dbk
Back
|
|
Financial Reform Bill on Home
Stretch
Reuters reported on July 15, 2010 that
“The broadest overhaul of U.S. financial rules since the Great
Depression is likely to clear a crucial hurdle in Congress on Thursday
morning, paving the way for President Barack Obama to sign the measure
into law.”
More: http://www.reuters.com/article/idUSTRE66E0MD20100715
Back
|
|
|
|
GlaxoSmithKline Agrees to Settle
Reuters reported on July 13, 2010 that pharmaceutical company
"GlaxoSmithKline Plc has agreed to pay $460 million to settle thousands
of lawsuits over its Avandia diabetes pill, Bloomberg reported on
Tuesday, on the eve of a crucial vote by U.S. experts on whether the
pill should be withdrawn due to heart risks."
More: http://www.reuters.com/article/idUSN1221251720100713
Back
|
|
When Will the Major Accounting Changes
Arrive?
CFO.com reported on July 13, 2010 that "When U.S. and international
accounting standard-setters reprioritized their pending joint projects
last month, they appeared to be backtracking on their self-imposed
deadline to finish their convergence project by June 2011, a pledge they
had recommitted themselves to as recently as last fall. But Financial
Accounting Standards Board member Thomas Linsmeier chafes at the word
'deadline.' During a FASB webcast two weeks ago, he used more flexible
terminology: 'target completion dates.'"
More: http://www.cfo.com/archives/directory.cfm/2984409
Back
|
|
Alabama-Based Company Agrees to Resolve
Environmental Violations
On July 14, 2010 the U.S. Department of Justice announced that McWane
Inc., a national cast iron pipe manufacturer headquartered in
Birmingham, Ala., has agreed to pay $4 million to resolve more than 400
violations of federal and state environmental laws, the Justice
Department and the U.S. Environmental Protection Agency (EPA) announced
today. The settlement, filed in federal court today in Birmingham, Ala.,
covers 28 of McWane's manufacturing facilities in 14 states and also
requires the company to perform seven environmental projects valued at
$9.1 million.
More: http://www.justice.gov/opa/pr/2010/July/10-ag-802.html
Back
|
|
Dutch Company Resolves FCPA Investigation and
Agrees to Pay $240 Million Criminal Penalty
The U.S. Department of Justice announced on July 7, 2010 that
Snamprogetti Netherlands B.V., (Snamprogetti) agreed to pay a $240
million criminal penalty to resolve charges related to the Foreign
Corrupt Practices Act (FCPA) for its participation in a decade-long
scheme to bribe Nigerian government officials to obtain engineering,
procurement and construction (EPC) contracts, the Department of Justice
announced today. The EPC contracts to build liquefied natural gas (LNG)
facilities on Bonny Island, Nigeria, were valued at more than $6
billion.
More: http://houston.fbi.gov/dojpressrel/pressrel10/ho070710.htm
Back
|
|
Pharmaceutical Company Settles Gender Bias
Suit
On July 15, 2010 Law.com reported that "Novartis
Pharmaceuticals Corp. has settled the remainder of gender bias claims
brought by women field representatives" claiming discrimination.
More: http://www.law.com/jsp/article.jsp?id=1202463548010
Back
|
|
|
|
Advanced Search
