Agenda – ‘Egregious and Brazen’ – Former CEO Arrested

Former FTE Networks CEO Michael Palleschi was arrested in New York for what authorities claim was a “years-long scheme to inflate FTE’s revenue, to conceal liabilities and expenses, and to embezzle company funds.” The company’s former chief financial officer, David Lethem, was arrested in Florida on the same charges. The pair of former executives was…

FirstEnergy Board Must Face Investor Suit Over Bribery Scheme

FirstEnergy Corp.’s directors and officers must face a shareholder derivative suit stemming from their alleged involvement in a bribery, racketeering, and pay-to-play scheme with Ohio politicians, after a federal court in that state found enough support Tuesday for allegations of false or misleading statements or omissions. The allegations that the leadership misrepresented or failed to…

How to Actually Prosecute the Worst Financial Crimes – The Atlantic

We agree with the diagnosis but would recommend a stronger proposal for change than “get smart people and try harder.” Too often, as in the financial meltdown, wealthy people are able to shape the law to make it impossible to prosecute them. I spent 27 years fighting white-collar crime and corruption at the Department of…

Public Citizen Report Finds That Corporate Prosecutions Plunged to a 25-Year Low Final Year of Trump Administration – Public Citizen

Corporate impunity increased to record levels during President Trump’s last year in office, when federal prosecutions of corporate criminals fell to just 94 – the lowest on record since the government started tracking corporate prosecution statistics in 1996 – while corporate leniency agreements increased to 45, the highest in Trump’s four years, a new Public…

Bausch Health Agrees to Pay $45 Million to Settle SEC Dispute – WSJ

Bausch Health Cos BHC -3.08% . agreed Friday to pay $45 million to resolve regulatory claims that it improperly booked some revenue and misled investors about the impact of a significant price increase on a single drug. The Securities and Exchange Commission said three former executives also agreed to pay penalties to settle the agency’s…

Two senators demand answers from Wells Fargo following NBC News reports

Citing a recent investigation by NBC News, two U.S. senators have asked the chief executive of Wells Fargo to answer extensive questions about the bank’s practice of pausing mortgage payments for borrowers without their consent under a federal program designed to help homeowners financially hurt by COVID-19. The senators, Elizabeth Warren of Massachusetts and Brian…

Shareholders pay the price for corruption | Minerva-Manifest

Reflecting the materiality of corruption and risk to shareholders, and to mark International Anti-Corruption Day, (Monday, 9 Dec 2019) Minerva is announcing the inclusion of a new anti-corruption metric in its pre-AGM research reports. Alongside indicators for climate change, cyber-security and tax governance, the new corruption indicator and voting guidelines will help investors take an…