Deutsche Bank Chief Apologizes for Lender’s Past Misconduct

The chief executive of Deutsche Bank apologized in especially contrite terms on Thursday for the long list of misdeeds that tarnished the German lender’s reputation and cost it billions of euros in fines and settlements, adding that bonuses of top managers would be cut.

The unusually strong expression of humility, which came as the bank disclosed a quarterly loss of 1.9 billion euros, or $2 billion, reflected the tone that John Cryan, the chief executive, has tried to set since taking over in July 2015. His comments at a news conference signaled another step away from the aggressive risk-taking that was part of the lender’s attempt to keep pace with American investment banking titans like Goldman Sachs and JPMorgan Chase.

Speaking slowly and with a grave demeanor, Mr. Cryan expressed “deep regret for what happened.”

“We would like to apologize sincerely,” he said. “Serious errors were made.” read more »

Panasonic admits avionics business is under investigation in US

The unit is being scrutinized in an investigation linked to the Foreign Corrupt Practices Act.

Panasonic has admitted that the company's avionics business is being investigated by the US Department of Justice (DOJ) and Securities and Exchange Commission (SEC).

On February 2, as reported by Reuters, the Osaka, Japan-based company said that Panasonic Avionics is under investigation, but did not reveal any further details.

In a SEC filing, Panasonic revealed the DOJ and SEC are scrutinizing the unit under the Foreign Corrupt Practices Act (FCPA), alongside other securities regulations. The 1977 FCPA enforces correct corporate accounting practices and also includes stipulations that payments cannot be made to foreign government officials for the purpose of gaining a business advantage. read more »

SEC Charges Investment Adviser With Stealing Investor Funds

The Securities and Exchange Commission today charged a Connecticut-based investment advisory business and its owner with stealing money from investors to settle a private lawsuit among other misuses.

The SEC alleges that Sentinel Growth Fund Management and its founder Mark J. Varacchi misrepresented to investors that money they deposited with the firm would be allocated to up-and-coming hedge fund managers for investment purposes.  According to the SEC’s complaint, Varacchi and Sentinel Growth Fund Management did not transfer all the money as promised, instead commingling investor assets and manipulating account activity, account balances, and investment returns as part of a scheme to siphon away investor funds.  Varacchi and his firm allegedly stole at least $3.95 million from investors, including more than $1 million to settle litigation brought by Varacchi’s prior employer. read more »

U.S. Man Residing in Costa Rica Pleads Guilty for Role in Two Separate Multi-Million Dollar Fraud Schemes

Defendant Charged in Connection with $10 Million Offshore Sweepstakes Fraud Ploy,

$2.5 Million High-Yield Investment Scheme

A U.S. man residing in Costa Rica pleaded guilty today for his role in two separate schemes.  One scheme was a $10 million “sweepstakes scheme” that targeted elderly U.S. residents, and the other was a $2.5 million high-yield investment fraud scheme. read more »

Former Executive of Tenet Healthcare Corporation Charged for Alleged Role in $400 Million Scheme to Defraud

A former senior executive of Tenet Healthcare Corporation, was indicted for his alleged role in an over $400 million scheme to defraud.  The indictment alleges that the scheme to defraud victimized the U.S. government, the Georgia and South Carolina Medicaid Programs, and prospective patients of Tenet hospitals. read more »

JPMorgan to pay Lehman $797.5 million to end litigation over collapse

JPMorgan Chase & Co will pay $797.5 million in cash to end all litigation brought on behalf the former Lehman Brothers Holdings Inc, whose September 2008 collapse triggered a global financial crisis.

Lehman creditors have maintained that JPMorgan unnecessarily extracted billions of dollars of collateral, and by doing so obtained a windfall at their expense. read more »

Madoff victims' recovery tops $9.7 billion with new payout

Bernard Madoff's victims will soon recoup another $252 million from the trustee unwinding the swindler's firm, boosting their total recovery to $9.72 billion.

The latest payout by trustee Irving Picard was made possible by settlements in the second half of 2016 with people accused either of facilitating Madoff's fraud or withdrawing more money from his firm than they deserved. read more »