U.S. Charges Huawei CFO With Iran Fraud

The U.S. government charged the CFO of Chinese telecom giant Huawei with deceiving banks as part of a scheme to hide its ownership of a company that did business in Iran.The charges of bank and wire fraud against Meng Wanzhou, the daughter of Huawei founder Ren Zhengfei, are included in a grand j...

By Matthew Heller • Jan. 29, 2019

Seven People Charged in Hack of SEC Database

A suspected Ukrainian computer hacker and several traders have been charged in a scheme that made more than $1.4 million in illicit profits by trading on nonpublic information stolen from a U.S. Securities and Exchange Commission database.The charges resulted from a breach of the EDGAR database t...

By Matthew Heller • Jan. 16, 2019

Judge Blocks NYC Crackdown on Airbnb Rentals

A federal judge sided with Airbnb in a legal battle with New York City over a law that would force online home-sharing sites to disclose renter data to city officials.U.S. District Judge Paul A. Engelmayr on Thursday granted Airbnb’s request for an injunction barring the city from enforcing the l...

By Matthew Heller • Jan. 4, 2019

Currency Risk Mounts as U.S. Dollar Rises

The dollar appreciated over 2018, and the trend will likely continue as the Federal Reserve maintains its rate hike strategy. While that sounds positive, it brings strain on exporters, particularly those trading with foreign companies with debt denominated in U.S. dollars.The math is simple: When...

By Atradius Trade Credit Insurance and Bob Merino • Dec. 17, 2018

GoPro Shifting Manufacturing Out of China Amid Trade War Concerns

GoPro will pull production of some of its cameras out of China by summer 2019 in response to escalating trade tensions. The company said the move would affect most of its cameras intended for sale in the United States. Cameras bound for the inte jirnational market would still be produced in China...

By William Sprouse • Dec. 10, 2018

IT Consultant Accused of Insider Trading

An Indian IT contractor has been charged in the U.S. with using nonpublic information about clients of the investment bank he was working for in Singapore to make $600,000 in illicit stock trading profits for himself, his wife, and his father.The Securities and Exchange Commission said Rajeshwar ...

By Matthew Heller • Dec. 7, 2018

Midland Funding Settles Collections Abuse Probe

Midland Funding, one of the nation’s largest debt buyers, has agreed to a $6 million settlement of allegations of improper collection and litigation practices brought by dozens of states.The agreement ends a six-year investigation of Midland, a subsidiary of Encore Capital Group, and requires the...

By Matthew Heller • Dec. 5, 2018

DJ Khaled, Floyd Mayweather Settle Cryptocurrency Charges

The Securities and Exchange Commission settled with boxer Floyd Mayweather and music producer Khaled Khaled,whose stage name is DJ Khaled,over allegations of failing to disclose payments they received for promoting investments in initial coin offerings.The settlements are the SEC’s first cases re...

By William Sprouse • Nov. 30, 2018

CFOs Find a New Role as Legal Strategists

When company leadership views legal claims as assets, conversations change. General counsels become part of business development and CFOs become part of the legal discussion, creating a powerful alliance that benefits the business on both fronts.Some have already adjusted their leadership teams t...

By Reed Oslan • Nov. 7, 2018

SEC Fines, Disgorgement Hit $3.9B in 2018

The U.S. Securities and Exchange Commission filed 9% more enforcement actions in fiscal 2018 despite budgetary constraints, obtaining more than $3.9 billion in disgorgement and penalties.The commission said in its annual report that enforcement actions totaled 821, up from 754 in fiscal 2017. Dis...

By Matthew Heller • Nov. 5, 2018

Hack to the Future: Cybersecurity in the Age of AI

“My first reaction,” says Cooper Quinton, senior staff technologist with the Electronic Frontier Foundation, “was surprise that it took so long.”He’s talking about the moment he heard of last month’s huge Facebook hack. “It wasn’t a shock,” he continues. “Every organization of any significant siz...

By Miguel Sancho • Nov. 1, 2018

‘Frack Master’ Settles Charges Over $80M Fraud

A Dallas businessman who called himself the “Frack Master” has agreed to pay $23.8 million to settle charges that he bilked investors in oil and gas companies of more than $80 million, diverting some of the money to maintain a lifestyle of “decadence and debauchery.”Christopher A. Faulkner allege...

By Matthew Heller • Oct. 24, 2018

HSBC to Pay $765M in Toxic RMBS Settlement

HSBC has agreed to pay $765 million to settle U.S. allegations that it sold toxic residential mortgage-backed securities before the financial crisis, resulting in “significant losses” to investors.In announcing the deal on Tuesday, the Department of Justice said the London-based bank misrepresent...

By Matthew Heller • Oct. 11, 2018

How to Make Sure You Can Trust Your AI

We know artificial intelligence will remake — is already in the process of remaking — both business and the broader world beyond. What we don’t know yet is what unintended consequences AI will wreak as it becomes more advanced and commonplace.One hindrance to envisioning that future is that AI is...

By David McCann • Oct. 5, 2018

Compliance Functions Lag on Tech Savvy

A majority of compliance functions at financial institutions are following one of three distinct paths aimed at achieving sustainable risk management in the fast-evolving digital age. However, only one path is likely to optimize success.Banks, capital markets firms, and insurers are investing in ...

By David McCann • Sept. 20, 2018

Florence Poses No Big Threat to Insurers

The commercial insurance industry is bracing for losses following the destruction that Hurricane Florence will wreak in the Carolinas, and perhaps beyond, over the next few days.But no matter what happens, the industry is not likely to suffer more than a glancing blow — a testament to its fiscal ...

By David McCann • Sept. 13, 2018

Regulator Continues Crypto Asset Crackdown

The U.S. Securities and Exchange Commission has broken new regulatory ground by charging a hedge fund manager and the owners of TokenLot with registration violations related to digital assets.The SEC’s case against TokenLot, a self-described “ICO Superstore,” is its first charging unregistered br...

By Matthew Heller • Sept. 12, 2018

Risk Psychology Invites Exposure to Black Swans

With weather events swirling and cyber-hackers swarming, CFOs need to keep a clear head and have a coherent risk strategy.Too often, however, companies fail to take to take proper precautions against Black Swans — outlier events, like last year’s extreme flooding in Houston. Their occurrence isn’...

By Frank Licata • Sept. 11, 2018

SEC Halts Trading in Bitcoin Tracking Products

In another move that highlights U.S. regulators’ concerns over Bitcoin exchange-traded funds, the U.S. Securities and Exchange Commission has suspended trading in two investment products that track cryptocurrencies.Bitcoin Tracker One and Ether Tracker One were launched in U.S. public markets las...

By Matthew Heller • Sept. 10, 2018

Nike Likely to Win with Bold Kaepernick Move

As we recently pointed out, companies are growing more emboldened to take stances on social and political issues — and accept the accompanying risks — during this divisive era in American history.The topic has, of course, exploded in the news this week, with Nike’s revelation of its new marketing...

By David McCann • Sept. 6, 2018

Ex-Playgirl Owner Accused of $287M Fraud

The former owner of Playgirl magazine has been charged with fraudulently raising $287 million for a cash-advance business that actually served as a source of cash for his other companies and his own lavish lifestyle.The U.S. Securities and Exchange Commission said Carl Ruderman perpetrated a four...

By Matthew Heller • Aug. 30, 2018

Moody’s Fined $16M Over Rating Deficiencies

Moody’s Investors Service has agreed to pay more than $16 million to settle allegations that it failed to ensure the accuracy of statistical models used in its ratings and apply rating symbols consistently.The U.S. Securities and Exchange Commission on Tuesday said the credit rating agency’s qual...

By Matthew Heller • Aug. 28, 2018

Brand Risk Soars in Today’s Social & Political Climate

“The country is divided, and companies are not getting away unscathed.”So says Peter Horst, a former chief marketing officer with several large companies, including Capital One and Hershey. His new book, “Marketing in the #FakeNews Era” (Advantage Media Group, May 2018), carries the tagline, “New...

By David McCann • Aug. 15, 2018

Oil Firm Founder Settles Charges of ICO Fraud

The founder of an oil and gas exploration company has settled allegations that he attempted to raise $5 million from investors through an initial coin offering he promoted with misleading marketing materials.The U.S. Securities and Exchange Commission said David T. Laurance and his Tomahawk Explo...

By Matthew Heller • Aug. 15, 2018

RBS to Settle RMBS Claims for Record $4.9B

Royal Bank of Scotland Group has settled another case arising out of its sale of toxic mortgage-backed securities for a record amount, agreeing to pay the U.S. $4.9 billion.The Justice Department said the penalty was the largest it had ever imposed for financial crisis-era misconduct at a bank un...

By Matthew Heller • Aug. 15, 2018