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This archive displays posts tagged as relevant to fraudulent misrepresentations in financial transactions and financial markets. You may also be interested in the following pages:

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November 21, 2023

Rio Tinto plc, Rio Tinto Limited, and Rio Tinto's former CEO Thomas Albanese have agreed to entry of a final judgment, ordering it to pay $28 million and permanently restraining Rio Tinto from violating Sections 13(a) and 13(b)(2)(A) of the Exchange Act and Rules 12b-20 and 13a-16 thereunder. The judgment stems from the SEC's 2017 complaint which alleged that Rio Tinto's public filings contained misleading statements about the value of its Mozambican coal assets. Rio Tinto has agreed to retain an independent consultant to review its compliance with accounting standards. Albanese will pay a $50,000 civil penalty and is required to cooperate in the SEC's continuing investigation into Rio Tinto's former CFO Guy Elliott. SEC

November 20, 2023

Toyota Motor Credit Corporation, the U.S.-based auto-financing arm of Toyota Motor Corporation, has been ordered to pay $60 million—including $48 million in consumer redress and $12 million in penalties—for illegal lending and credit reporting misconduct in violation of the Consumer Financial Protection Act and Fair Credit Reporting Act. According to aggrieved consumers, dealers misled them about optional products and services that could be sold bundled with vehicles, either representing that they were mandatory or including them on contracts without their knowledge.  Toyota Motor Credit then stymied attempts to cancel bundled products and services, directing consumers to a dead-end cancellation hotline, delaying or withholding refunds, and providing inaccurate refund information.  CFPB

October 18, 2023

For-profit Sollers College, its parent company, Sollers Inc., and its founder and president Siba Padhi have been ordered to cancel $3.4 million in student debt and pay $1.2 million in civil penalties for misrepresenting its job placements rates and relationships with prominent companies in order to lure students to the school.  Since 2018, Sollers claimed that 90% of its graduates were placed in jobs within 3 months of graduation, when in reality the number was as low as 52%.  Sollers also encouraged students into paying tuition with illegal income-sharing agreements, wherein students would pay the school a fixed percentage of their future income for about two years.  Nearly 400 students nationwide were affected by this misconduct, with more than 60 of them being residents of New Jersey.  NJ AG; FTC

October 17, 2023

Fintech company Chime Inc., d/b/a Sendwave, has been ordered to pay $1.5 million in fees and a $1.5 million penalty to the CFPB’s victim relief fund for violations of the CFPB’s Remittance Transfer Rule and the Electronic Fund Transfer Act.  According to the agency, Chime deceived consumers about the speed and cost of remittance transfers on its mobile app, forced consumers to waive their legal rights, failed to provide consumers with required disclosures or timely receipts, and failed to properly track, investigate, and resolve consumer disputes and errors.  CFPB

October 12, 2023

Trans Union LLC and its subsidiary, TransUnion Rental Screening Solutions, Inc. (TURSS), have agreed to pay $15 million to settle charges of violating the Fair Credit Reporting Act (FCRA) by failing to ensure the accuracy of information included in tenant background screening reports, thus hampering the ability of consumers to obtain housing.  Some of the failures included reporting developments in the same eviction proceeding as if they were from more than one eviction, mischaracterizing the nature of certain information, and failing to accurately report eviction outcomes.  CFPB; FTC

October 6, 2023

Two groups of student loan debt relief scammers—SL Finance LLC and owners Michael and Christian Castillo, along with BCO Consulting Services and SLA Consulting Services Inc and owners Gianni Olilang, Brandon Clores, Kishan Bhakta, and Allan Radam—have been ordered to pay a partially suspended $5.8 million each and be permanently banned from the industry.  The defendants pretended to be affiliated with the Department of Education and used their fake position to charge students millions in junk fees through nonexistent loan repayment and forgiveness programs.  FTC

September 29, 2023

SMC Systems Inc., d/b/a Skyetec, has agreed to pay $2.35 million to resolve allegations of violating the Financial Institutions Reform, Recovery and Enforcement Act of 1989.  Over a seven year period, Skyetec allegedly made false statements to the EPA regarding the results of inspections for the EPA’s Energy Star Home Certification Program, which verifies the presence and installation quality of a home's insulation.  DOJ

September 28, 2023

Energy provider Exelon Corporation and its subsidiary Commonwealth Edison Company (ComED) have agreed to pay $46.2 million to settle charges of attempting to influence legislation through illegal bribes to then-Speaker of the Illinois House of Representatives, Michael Madigan.  Between 2011 and 2019, in anticipation of benefits worth more than $150 million, ComEd provided $1.3 million in monetary payments, as well as employment and subcontracts, to Madigan’s associates.  Former ComED CEO Anne Pramaggiore—who allegedly directed and participated in the scheme, lied to investors and auditors, and filed false certifications—continues to face charges of violating federal securities laws.  SEC

September 26, 2023

Hyzon Motors, which builds hydrogen fuel cell electric vehicles, has agreed to pay $25 million to settle SEC charges of misleading investors about its business relationships and sales numbers.  Its former CEO, Craig Knight, has agreed to pay about $250,000, and former managing director of its European subsidiary, Max C.B. Holthausen, has agreed to pay over $122,500, to settle charges against them.  Hydron, Knight, and Holthausen allegedly misrepresented that they had already sold a number of vehicles and that more sales were imminent, and made other misstatements concerning its certain customer and supplier relationships, the delivery of its first vehicle, and the reporting of its sales numbers.  SEC

September 25, 2023

Investment adviser DWS Investment Management Americas Inc. (DIMA), a subsidiary of Deutsche Bank AG, has agreed to pay $25 million to settle two separate enforcement actions.  In the first action, DIMA was found to have failed to develop and implement an anti-money laundering (AML) program to comply with the Bank Secrecy Act and Financial Crimes Enforcement Network regulations.  In the second action, DIMA was found to have made materially misleading statements about how it managed its Environmental, Social, and Governance (ESG) products while marketing itself as a leader in the field.  SEC
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