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Head of Country’s Largest Bank Apologizes over Corruption Allegations. Oh, the Country is South Korea

What does the chief executive officer of the largest bank in the country do when the bank is facing charges of corruption and it determines that there is some validity to the charges? He admits wrongdoing and bows deeply in apology. At least, the CEO takes those steps if the bank is in South Korea...

Sequestration May Lead to Increase in Financial Fraud and Other Crimes, Preet Bharara Warns

The U.S. Attorney for the Southern District of New York, Preet Bharara, knows about prosecuting financial fraud, and other federal crimes. So, when he warns that sequestration is severely harming the ability of his office to meet its mission, we all should pay attention. Speaking before the New York...

Corruption is Commonplace in New York, and Reforms Cannot Wait, Commission Finds

Several months ago, New York Governor Andrew Cuomo created a commission to investigate public corruption. The commission has just released a report that contains a stinging indictment of the scope of corruption in New York’s state government, political campaigns, and elections. The commission...

Least Corrupt Country in the World Is … Not the United States

The Transparency International Secretariat in Berlin has released its annual Corruption Perceptions Index. The Index ranks the public sector of 177 countries across the world according to perception of corruption. This year, New Zealand ties with Denmark for first place. The United States is on the...

Corruption, Crime, and Tax Evasion Drained US$946.7 Billion from Developing Countries, Study Finds

Corruption, crime, and tax evasion drained US$946.7 billion from the developing world in 2011, up more than 13.7 percent from 2010—when illicit financial outflows totaled US$832.4 billion – a new study has found. The findings—which peg cumulative illicit financial outflows from developing...

For Whom the Bell Tolls: City’s Former Chief Administrative Officer to Plead Guilty to Conspiracy and Tax Charges

Robert A. Rizzo, who for years was the top administrator in the California city of Bell and who became a symbol of municipal corruption, has agreed to plead guilty to federal charges in a scheme that resulted in hundreds of thousands of dollars in unpaid federal income tax, federal prosecutors said....

Should Corrupt Politicians Keep Their Government Pensions? Manhattan US Attorney Says No

Suppose an elected government official is convicted of corruption. Should the official be able to receive his or her government pension – perhaps while in prison? Many people think not. Apparently, the U.S. Attorney for the Southern District of New York agrees with that view. Preet Bharara has...

#9 in Financial Fraud Law for The Year Is…

It was not all that difficult to begin our countdown of the Top 10 in Financial Fraud Law for the year with overseas bank accounts . So, we here at the Financial Fraud Law Blog thought, after we made that decision, that at least the next few “winners” would be rather straightforward choices...

Final Four in Financial Fraud Law’s Top 10 of the Year Is Coming Next Week!

The Financial Fraud Law Blog Top 10 countdown is nearing conclusion. You already have seen our picks for #10 down through #5, which we summarize below. Stay tuned for the final four picks, coming right after the New Year! We wish all of the readers of the Financial Fraud Law Blog , the subscribers...

Oil Services Company’s Ex-General Counsel Pleads Guilty to Bribery and Fraud

Two former chief executive officers of PetroTiger Ltd. – a British Virgin Islands oil and gas company with operations in Colombia and offices in New Jersey – have been charged for their alleged participation in a scheme to pay bribes to foreign government officials in violation of the Foreign...

Alcoa World Alumina Pleads Guilty to Foreign Bribery and Will Pay $384 Million in Fines and Penalties

Alcoa World Alumina LLC, a majority-owned and controlled global alumina sales company of Alcoa Inc., has agreed to plead guilty and to pay $223 million in criminal fines and forfeiture to resolve charges that it paid millions of dollars in bribes through an international middleman in London to officials...

Tennessee Mayor Gambled, and Lost Big

A former mayor of South Pittsburg, Tennessee, has been sentenced to prison for managing an illegal gambling business. Former South Pittsburg Mayor James Michael Killian was sentenced by U.S. District Judge Curtis L. Collier in the Eastern District of Tennessee to serve six months in prison, followed...

Ethically-Challenged Arkansas Lieutenant Governor Resigns

The lieutenant governor of Arkansas, Mark Darr, is resigning following a decision by the state ethics commission to fine him for nearly a dozen ethics violations, including for his personal use of more than $30,000 of campaign funds. Darr, a Republican who has faced mounting pressure since the ethics...

Chris Christie Facing Federal Inquiry into Funding for Superstorm Sandy Ads that Featured Him

The Office of the Inspector General at the U.S. Department of Housing and Urban Development (HUD) will audit the State of New Jersey’s use of $25 million of Sandy aid funds for a marketing campaign to promote tourism at the Jersey Shore. At issue is the bidding process for the campaign and released...

Former Virginia Governor and His Wife Are Charged with Corruption

A federal grand today has returned a 14-count indictment against former Virginia Governor Robert F. McDonnell and former First Lady Maureen G. McDonnell for allegedly participating in a scheme to violate federal public corruption laws. The indictment, returned in the Eastern District of Virginia,...

Three Charged in Alleged Widespread Corruption Schemes at US Military Base

Three Georgia men have been charged in a 51-count indictment for their alleged participation in fraud and corruption schemes at the Marine Corps Logistics Base (MCLB) in Albany, Georgia. Federal prosecutors assert that the U.S. government lost millions of dollars as a result. Christopher Whitman,...

China’s Top Leaders Have Secret Offshore Accounts, ICIJ Reports

Close relatives of China’s top leaders have secret offshore companies in tax havens that help shroud the Communist elite’s wealth, according to the International Consortium of Investigative Journalists. The group said it based its findings on a leaked cache of documents. According to the...

US Government Sues Kellogg, Brown & Root Services, Alleging Kickbacks and False Claims Relating to Iraq Support Services Contract

The U.S. government has filed a complaint against Kellogg, Brown & Root Services Inc. (KBR) and Kuwaiti companies La Nouvelle General Trading & Contracting Co. and First Kuwaiti Trading Co. for allegedly submitting false claims in connection with KBR’s contract with the Army to provide...

Norton Rose Fulbright Launches Global Regulation and Investigations Practice with 600 Lawyers

Norton Rose Fulbright has launched a global regulation and investigations practice to assist businesses around the world in navigating regulatory issues. Regulatory issues were cited by global companies as their number one business challenge in 2013, according to new data from Acritas. Norton Rose...

Financial Fraud Law Quiz: New Jersey Mayors Who Have Been Convicted or Pleaded Guilty in Corruption Cases

With the bribery, fraud, and extortion conviction last week of Tony Mack, the mayor of Trenton, New Jersey, the Financial Fraud Law Blog and the Financial Fraud Law Report thought we would ask our readers if they could identify the communities in New Jersey that have had mayors convicted or have had...

New Jersey Mayors and Corruption: The Answers to the Financial Fraud Law Quiz

Earlier today, in our Financial Fraud Law Quiz, we asked you to identify the communities in New Jersey that have had mayors convicted or have had mayors who have pleaded guilty in corruption cases. We limited it to this century, and we started you off with one answer: Trenton, whose mayor, Tony Mack...

Adoption Agency Employees Charged with Conspiracy to Defraud the US in Connection with Ethiopia Operations

Four current and former employees of International Adoption Guides Inc. (IAG), an adoption services provider, have been indicted by a grand jury in South Carolina for allegedly conspiring to defraud the United States in connection with IAG’s adoption services in Ethiopia. IAG is a South Carolina...

How Bad is Public Corruption in Northern Virginia? Apparently Bad Enough for the FBI to Seek the Public’s Help

We know that the former governor of Virginia and his wife have been charged with corruption , and that Virginia was one of a handful of states to get an "F" in a corruption study , but how bad, really, is corruption here? Apparently, this form of financial fraud is bad enough for the FBI...

Who’s Your Anti-Corruption Hero?

The global anti-corruption organization Transparency International now is accepting nominations for its 2014 Integrity Awards. Launched in 2000, the awards recognize the courage and determination of individuals and groups taking remarkable steps to combat corruption, often at great personal risk, TI...

Singapore Executive is Second to Plead Guilty in International Navy Corruption Scandal

Alex Wisidagama, a former executive with Glenn Defense Marine Asia (GDMA), has pleaded guilty to participating in a scheme to defraud the United States, admitting that he and others duped the U.S. Navy into overpaying by at least $20 million for supplies and services to American ships in Asian ports...