Financial and Investment Fraud

April 30, 2020

Entities of Israeli banking conglomerate Bank Hapoalim have pleaded guilty and entered into civil settlements for their role in a money laundering scheme for bribes made to soccer officials with Fédération Internationale de Football Association (FIFA) and others in exchange for preferences including in the award of soccer match broadcasting rights.  As part of three-year non-prosecution agreement, the bank will forfeit $20.73 million, pay a fine of $9.33 million, and undertake specified remedial and compliance efforts. The bank simultaneously entered into a separate settlement regarding tax evasion.  DOJ; USAO EDNY

April 30, 2020

Oncology practice group Florida Cancer Specialists & Research Institute LLC entered into a deferred prosecution agreement admitting to a criminal antitrust conspiracy in the form of an agreement with another provider not to compete to provide chemotherapy and radiation treatments to cancer patients in southwest Florida.  FCS will pay a $100 million criminal penalty and cooperate with ongoing federal antitrust investigations into market allocation and other anticompetitive conduct in the oncology industry.  DOJ

April 29, 2020

Lender Guaranteed Rate, Inc. will pay $15.1 million to resolve allegations that it knowingly failed to adhere to material program requirements in originating and underwriting mortgages insured by FHA or guaranteed by the VA, resulting in mortgages that did not meet credit and underwriting requirements for the government-sponsored guarantees and insurance.  The case was initiated by a whistleblower complaint filed under the False Claims Act by an unnamed former Guaranteed Rate employee, who will receive $2.4 million of the settlement proceeds.  The settlement also resolved claims under FIRREA.  DOJ; USAO NDNY

April 20, 2020

The Industrial Bank of Korea will pay $86 million as part of a deferred prosecution agreement resolving claims arising from the bank’s processing of more than $1 billion of transactions between Korean entities to Iranian entities in violation of economic sanctions law under the International Emergency Economic Powers Act. The bank admitted that it failed to institute an adequate and effective anti-money laundering program despite repeated warnings by its New-York based compliance officer.  The bank will pay a $35 million to the State of New York and forfeit $51 million to the U.S.  USAO SDNY; NY

April 17, 2020

Italian oilfield services company Eni S.p.A. agreed to pay a total of $24.5 million in disgorgement and interest to resolve charges that it violated the Foreign Corrupt Practices Act.  Eni, which has ADRs listed on the NY Stock Exchange, is alleged to have used its subsidiary, Saipem S.p.A. to make payments of $215 million under sham agreements with an intermediary to assist in securing contracts with Algeria’s state-owned oil company.  The intermediary had no qualifications in any relevant field, no office, and no staff – but was known to be “like a son” to the Algerian energy minister.  Eni failed to accurately record the nature of the intermediary payments in its books and records.  SEC

April 1, 2020

A Christian concert promoter and his business have settled with the SEC over charges of defrauding 145 investors of $3 million.  According to a press release, Jeffrey Wall of Maine and his business, The Lighthouse Events LLC, had promised investors that investments intended to promote Christian music concerts were “secured” and “guaranteed,” when in fact they were being used to pay off debt and make payments to earlier investors.  Each of the defendants have since been ordered to pay nearly $1.6 million each in civil penalties, $1.6 million in disgorgement, and over $200,000 in prejudgment interest.  SEC