Article Summaries

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20 Sep 2019

Former UAW Official Pleads Guilty to Fraud and Money Laundering

By |2019-09-20T09:03:24-04:00September 20th, 2019|

The United Auto Workers (UAW) union have been in the news a lot lately due to their protests and negotiations with General Motors. Earlier this month, UAW was featured in the news for a different reason. Michael Grimes, a former UAW official, pleaded guilty to charges of wire fraud and money laundering in a FBI investigation. The FBI has also searched the home of Gary Jones, UAW president. The UAW has released  a statement, calling Grimes' conduct "shocking and absolutely [...]

18 Sep 2019

The EU’s Fight Against Financial Crime

By |2019-09-18T08:58:48-04:00September 18th, 2019|

In the past couple years, the European Union has experienced the fallout from multiple scandals relating to money laundering and corruption. In September 2018, a report was released that identified $229 billion worth of suspicious transactions that flowed through one Dankse Bank branch in Estonia. Dutch bank ING N.V. agreed to pay $900 million to settle an investigation into money laundering issues. The Fifth Anti-Money Laundering directive was released to address the current issues with money laundering, but perhaps the [...]

16 Sep 2019

British Based Gambling Firm Fined £5.9m

By |2019-09-16T10:17:24-04:00September 16th, 2019|

Ladbrokes Coral, a British based gambling firm, has been fined £5.9m for a three-year lapse in which they did not follow anti-money laundering measures and did not protect customers. GVC Holdings bought Ladbrokes Coral in March 2018 and while the difficulties occurred between November 2014 and October 2017, the new owners will still be paying this fine. Despite large expenditures of money, Coral did not ask a customer to provide evidence of the source of funds and did not do [...]

12 Sep 2019

Individual Ordered to Pay $9 Million or Face 10 Years in Jail After Being Convicted of Money Laundering

By |2019-09-12T08:20:19-04:00September 12th, 2019|

Ellias Preko, a former Goldman Sachs investment banker, was served a confiscation order by the National Crime Agency (NCA) of the United Kingdom. Preko must pay 7.3 million pounds or face a 10-year jail sentence. After leaving Goldman Sachs Preko began to work for James Ibori, the former governor of Nigeria’s Delta State. Preko was convicted of laundering millions of dollars for Ibori during their time working together. Previous confiscation orders were for much lower amounts, normally around 1 million [...]

10 Sep 2019

London Money Transmitter Fined Record £7.8 million for Failing to Adhere to Money Laundering Regulations

By |2019-09-09T11:32:52-04:00September 10th, 2019|

Her Majesty’s Revenue and Customs(HMRC), a department of the United Kingdom responsible for regulatory regimes, has fined Touma Foreign Exchange Ltd almost ten million dollars for breaching money laundering regulations. This fine follows a crackdown in July where officers executed warrants at 12 separate addresses and arrested two men. HMRC and Metropolitan Police officers are working to educate business, performing visits and hand-delivering thousands of leaflets. HMRC also visited five high-risk money service businesses and decided to take civil action [...]

8 Sep 2019

“The Biggest Financial Fraud Trial” in Germany’s Postwar History

By |2019-09-06T15:23:26-04:00September 8th, 2019|

German media have dubbed it "the biggest financial fraud trial" in Germany since WWII. Two British citizens are accused of using cum-ex transactions to defraud the German government out of almost $500 million dollars. The trial is ongoing in Bonn, Germany with the accused facing a 635-page charge sheet. Cum-ex trading was outlawed in 2012, but the accused are only charged with instances occurring in 2011 or before. However, this trial could help the German government prove that the practice was [...]

7 Sep 2019

HSBC Agrees to Pay $336 million Settlement for Tax Fraud Case

By |2019-09-06T15:08:15-04:00September 7th, 2019|

HSBC has agreed to pay $336 million to settle a tax fraud dispute in Belgium after prosecutors alleged that HSBC committed tax fraud, forgery, money-laundering, and other illegal activities. In 2004, the European Union applied a tax on savings income and the prosecutors allege that HSBC aided wealthy clients in hiding money in off-shore companies. It is possible that billions of dollars were hidden in tax havens around the Caribbean. The payment is intended to cover the losses in tax [...]