On 16 August, DoJ, SEC charged group in wide-reach insider trading. DoJ charged 5 persons, SEC 7, for insider trading before mergers, acquisitions. Group generated millions in profit by trading on confidential M&A information. Evasion by shell companies, codes, and encrypted, self-destructing messaging. US Attorney, NY also unsealed criminal charges against same seven individuals. Bank…
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U.S. SEC Oil Drilling Offer Scam
On 11 August, SEC charged promoters with oil drilling investments. Charged David Greenlee, David Stewart Jr. with orchestrating $15mn scheme Alleged Violations Lured investors by false promises of high returns from oil drilling investments. Network of salesmen sold stakes in companies purportedly using innovations. Enhanced oil recovery techniques, like fracking to extract and sell oil in wells.…
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U.S. DoJ FHA PHH $74mn Underwriting Fine
On 8 August, DoJ fined PHH $74mn re HUD underwriting requirements. Agreed to pay $65mn to resolve FHA allegations and $9.45mn for VA and FHFA. Alleged Violations PHH failed to meet requirements, when originating and underwriting mortgages. Specifically, FHA, VA, Fannie Mae and Freddie Mac re quality control requirement. From 2006, PHH participated as direct…
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Australia – AUSTRAC Charge CBA re AML
On 3 August, AUSTRAC charged Commonwealth Bank with AML. Initiated proceedings in federal court, on Commonwealth Bank of Australia (CBA). For non-compliance with AML/CTF Act, using intelligent deposit machines (IDMs). Cash Deposits via Machine IDMs are ATMs that accept deposits by cash and cheque, to account of recipients. Funds are then available for transfer to…
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