Hagens Berman Blog

Whistleblower News: Saudi Arabia, TIAA, Madoff, McKinsey

by HB Whistleblower Legal Team

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Saudi Arabia: 201 people held in $100bn corruption inquiry

More than $100bn (£76bn) has been misused through corruption and embezzlement in Saudi Arabia in recent decades, the country’s attorney general has said, as he announced the detention of 201 people as part of a sweeping investigation.  read more »

TIAA Receives New York Subpoena on Sales Practices

New York’s attorney general has subpoenaed TIAA, the giant insurance company and investment firm, seeking documents and information relating to its sales practices, according to people briefed on the inquiry.

The subpoena to TIAA, which handles retirement accounts for over four million workers at 15,000 nonprofit institutions across the country, followed an article last month in The New York Times that raised questions about the firm’s selling techniques. TIAA oversees almost $1 trillion in client assets.

The TIAA practices drawing scrutiny from the New York attorney general, Eric T. Schneiderman, are also the subject of a whistle-blower complaint filed with the Securities and Exchange Commission. That complaint, obtained by The Times, was filed by former TIAA employees who contend they were pressured to sell products that generated more revenue for the firm but were more costly to clients while adding little value.  read more »

Madoff Victims Get First Payments From Recovered $4 Billion

The U.S. Justice Department started a long-delayed distribution to victims of Bernard Madoff’s Ponzi scheme, tapping a $4 billion fund created through settlements with some of the con man’s oldest customers and his bank, JPMorgan Chase & Co. read more »

In Growing Saudi Business, McKinsey Hired Officials’ Children

Consultancy employed at least eight relatives of high-ranking Saudis in past few years

Saudi Arabia—McKinsey & Co. has been paid millions of dollars in recent years advising Saudi Arabia’s government on an ambitious economic transformation. Over the same period, the global consultancy has hired at least eight relatives of high-ranking Saudi officials.  read more »