Score One for the Bank Whistle-Blowers

Here is something to celebrate: The United States Supreme Court just handed whistle-blowers one of their bigger wins in a long time.

People who expose wrongdoing in the workplace or among government contractors have taken a beating in recent years. The Obama Administration was especially assiduous in its pursuit of whistle-blowers, and President Trump has also singled them out for scorn.

So it was gratifying to see the Feb. 21 ruling from the nation’s top court on an important bank whistle-blower case dating back to the financial crisis. In its opinion, which vacated two lower courts’ dismissals of the case, the Supreme Court essentially confirmed that some courts have been using too narrow a legal standard when weighing whistle-blower suits under the False Claims Act, which is meant to punish those who defraud the government. read more »

Hiring ‘Princeling’ Complicates Business in China for Global Banks

Two of the biggest global banks, HSBC and Citigroup, announced they are under investigation by the U.S. Securities and Exchange Commission (SEC) for candidate hiring practices.

It’s believed that the investigations focus on the banks’ hiring of so-called princelings, or children of state-owned enterprises or government officials, in Asia. Companies have used this practice to curry favors with local politicians or business executives in order to win business, mostly in China. read more »

South Korean Prosecutors to Indict Samsung’s Lee on Corruption Charges

South Korea’s special prosecutor indicted Jay Y. Lee, the de facto head of Samsung Group, on bribery charges in the latest blow to the country’s largest conglomerate amid a generational handover.

Lee will stand trial over accusations he participated in bribes made in exchange for government favors, with formal charges filed Tuesday against him and four other executives. The Samsung Electronics Co. vice chairman allegedly directed tens of millions of dollars to entities controlled by a confidante of President Park Geun-hye, in return for government support of a 2015 merger that cemented his control of the group. read more »

The Guardian view on South Korea: scandals and successes: Editorial

North Korea’s bombastic rhetoric, nuclear programme and now the killing of the leader’s half-brother ensure – as intended – that this impoverished and insular country grabs extraordinary international attention. More surprising is that South Korea inspires so little interest in the west. It is, perhaps, too prosperous and stable to intrigue. But its rise has been spectacular. When Korea was divided in 1953, the south’s prospects looked gloomy. Life expectancy stood at around 50 years. Now it is a major global economy. By 2030 its women are expected to live past 90, leading the world. And a “Korean wave” of popular culture – K-pop, cosmetic brands and dramas – has swept through Asia and onwards.

Seoul’s latest soap opera is its most riveting and its most absurd. But this one is factual and threatens to make President Park Geun-hye the country’s first democratically elected leader to be forced from office early. It involves a “female Rasputin”, multimillion-dollar bribery allegations that have led to the arrest of Samsung’s acting head, and an actual, not merely metaphorical, gift horse. On Monday, the court deciding whether to uphold Ms Park’s impeachment will hear closing arguments. Her powers are already suspended and she has vowed to resign if it rules against her; critics say she has been stalling to see out the last year of the single term that presidents are allowed. read more »

Administrator of Miami-Area Home Health Agency Sentenced to 126 Months in Prison for Involvement in $2.5 Million Medicare Fraud Scheme

Today, the administrator of a Miami-area home health agency was sentenced to a 126 month prison term for his role in a $2.5 million Medicare fraud scheme. read more »

Trader who touted ForceField on Fox Business pleads guilty to conspiracy

A trader who touted the stock of ForceField Energy Inc on television while being paid kickbacks to endorse the LED lighting provider pleaded guilty on Monday to a conspiracy charge, related to a fraud that cost investors $131 million, federal prosecutors said.

Herschel Knippa, the owner and head trader at Kenai Capital Management LLC in Dallas, admitted to conspiring to commit securities fraud, in a hearing before U.S. Magistrate Judge Ramon Reyes in Brooklyn.

Prosecutors accused Knippa, 46, of touting the now-essentially worthless ForceField stock on television without revealing his receipt of kickbacks. read more »

U.S. judge dismisses case against Wal-Mart over Mexico bribery

Wal-Mart Stores Inc. on Monday won the dismissal of a U.S. lawsuit accusing the world's largest retailer of defrauding shareholders in its Wal-Mart de Mexico unit by concealing its suspected bribery of public officials in Mexico.

U.S. District Judge Katherine Polk Failla in Manhattan said holders of Wal-Mex's American depository shares cannot pursue claims that Wal-Mex's former Chairman Ernesto Vega and Chief Executive Scot Rank knew or were reckless in not knowing about the bribery allegations.

She also rejected shareholder claims that Wal-Mex and Wal-Mart were liable for Vega's and Rank's activity, and that Wal-Mex misled shareholders by saying it operated legally and ethically during the alleged bribery scheme.

Lawyers for lead plaintiff Michael Fogel did not immediately respond to requests for comment.

The lawsuit is one of several targeting Wal-Mart after The New York Times in April 2012 reported that the Bentonville, Arkansas-based retailer bribed Mexican officials for years to speed up store openings. read more »