Whistleblower News From The Inside -- November 7, 2016
By the C|C Whistleblower Lawyer Team
Volkswagen emissions investigation expands to include its chairman – German prosecutors suspect the chairman, Hans Dieter Pötsch, of violating securities laws. “The investigation of Mr. Pötsch could also provide ammunition to investor groups and mutual funds that are suing Volkswagen in the United States and Germany. The suits claim that Volkswagen managers were aware of the impending scandal and failed to notify shareholders as required by law.” NYT
Generic drug firms face possible criminal collusion charges – The Justice Dept. has sent subpoenas to several manufacturers seeking information about product pricing and communications with competitors, according to SEC filings made by some of the manufacturers. A group of state attorneys general are conducting a separate investigation into generic drug price-fixing. WSJ
New York banking regulator fines Agricultural Bank of China for money laundering violations – The Dept. of Financial Services has imposed a $215 million fine on the bank for disguising large, suspicious transactions between China and Russia, Yemen, Afghanistan, and the United Arab Emirates. Compliance staff at the New York branch detected suspicious transactions, but when they brought concerns to management they were ignored. NY Post
Dept. of Labor’s “fiduciary rule” survives first challenge — The rule, which requires those who advise individual retirement accounts to act in the best interest of the client, has been challenged by industry professionals in multiple suits. The new rule imposes a higher standard than the current approach that allows the promotion of products that are merely “suitable” to an investor. The judge found that the complexity of financial products has sown confusion, creating the potential for costly mistakes and making investors more dependent on expert advice. National Law Journal
U. of Rochester professor will pay $100 million penalty over Swiss accounts — Dan Horsky, an emeritus professor of business administration, invested money in start-ups and held the $200 million he made in a Swiss bank. Failure to disclose foreign accounts and to pay taxes on them can result in a 50% penalty, as it did in this case. USAO – ED Virginia