Following the LAW


Do you think your corporation or Limited Liability Company (LLC) will protect you from your wrongdoing? See the examples below and make your own decision.


Walmart to Pay $282 Million to settle claims of corrupt payments abroad


WSJ June 20, 2019; Dave Michaels & Sarah Nassauer

Walmart agreed to pay $282 million to resolve an investigation, conducted by the DOJ and SEC, indicating the company paid bribes to win business and accelerate permits, abroad in Brazil, China, Mexico and India. They maintain that the company’s actions violated the Foreign Corruption Practices Act which forbids U.S.-listed companies from paying bribes to win business abroad.


Oneir Sales and Rentals LLC on Marco Island, FL owners arrested in alleged multi-million-dollar Ponzi scheme

Joseph Barnard Charde and Allen Roy Duquet face numerous charges for felonies including RICO Conspiracy. They were accused of taking money for real estate investments and spending the escrow money in stead of utilizing the money properly towards the intended purchase, according to the state attorney.

Naples Daily News

7/4/2019


Ex-UBS Compliance Officer and Day Trader Found Guilty of Insider Trading

A U.K. jury convicted a former UBS Group AG compliance officer and a wealth trader of insider trading.

WSJ 2019

Bradley Hope


Ex-Goldman Banker Sentenced for Insider Trading

A former Goldman Sachs Group investment banker who traded on confidential information regarding perspective deals has ben sentenced to prison and ordered to pay back illegal gains.

WSJ

Maria Armental


Justice Department Indicts Norway Ship Executives on Antitrust Charges

The Justice department has charged two former executives of Norway’s Hoegh Autoliners A/S with participating in a sprawling conspiracy to fix prices for seaborne vehicle shipments.

WSJ

Costas Paris


Equifax execs sold shares before the hack was announced-but was it insider trading?

Equifax said they discovered tha hack on July 29,2019. Three days later, the SEC filings show the CFO and the President of Equifax’s U.S. Information Solutions business unit sol shares. Weeks later Equifax publicly announced the hack. Equifax shares closed down 14%. If the executives know about the hack before the sales, they could be vulnerable to either civil or criminal insider-trading charges.

Los Angeles Times

James Rufus Koren

9/8/2017


Queens Check Cashing Company and its Owner Plead Guilty in $19 Million Scheme

Belair Payroll Services, Inc, a multi branch check cashing company based in Flushing, New York and its owner, pled guilty to failing to follow reporting and anti-money laundering requirements for over $19 million in transactions, in violation of the Bank Secrecy Act (BSA). The owner also pled guilty to conspiring to defraud the United States by willfully failing to pay income and payroll taxes.

Department of Justice

U.S. Attorney’s Office

Eastern District of New York

11/5/2013


Two Found Guilty of Fund Fraud

A federal jury in Brooklyn, N.Y. convicted two executives at defunct hedge fund Platinum Partners of Black Elk Energy Offshore Operations LLC, of fraud charges relating to accusations the men lied to investors about the health of their fund

WSJ

Corinne Ramey

7/10/2019


Theranos Founder’s Trial Set for Next Year

In San Jose, Calif, the founder of a blood-testing startup Theranos Inc. and their employee face charges that they lied to doctors and patients about test results and deceived investors about the company’s finances.

WSJ

Abibail Summerville

6/29-30, 2019


Court Convicts Two of 1MDB-Tied Charges

An employee of Abu Dhabi’s International Petroleum Investment Co. was convicted of charges for exploiting his job and unlawfully appropriating 149 million euros after selling shares he owns of the company he heads.

WSJ

Bradley Hope

2019


Ex-UBS Banker Sentenced in China

A former banker from USB’s Shanghai office was sentenced to nine years in prison in a case involving the leaks of billions of dollars take over by Cosco Shipping Holdings Co.

WSJ

Joanne Chiu and Zhou Wei

6/22-23, 2019


Technip FMC Agrees to Pay around $300 Million to Resolve Foreign Bribery Probes in U.S., Brazil

The U.S. Justice Department deferred prosecution of the oil-and-gas services company with an agreement in to resolve allegations it bribed government officials in Iraq and Brazil, including at the country’s state-controlled oil-and-gas company petroleo brasileiro SA.

WSJ

Dylan Tokar


Federal Agents Search Home of United Auto Workers President

Federal agents searched the home of United Auto Workers President and the home of his predecessor, during a multiyear criminal investigation into alleged corruption in the UAW”s top ranks. The federal prosecutors are investigating allegations of bribes, kickbacks and other financial misconduct by union officials in their dealings with the car makers.

WSJ

Nora Naughton

2019


Former Construction Boss Sentenced for Role In $58 Million HOA Scheme, Tax Evasion

On Aug. 6, 2015 in Las Vegas, Nevada, a former construction boss at Silver Lining Construction LLC, from Las Vegas, was sentenced to 188 months in prison and ordered to pay restitution of $13,294,100. He pleaded guilty on Jan. 23, 2015, to one count of conspiracy to commit mail and wire fraud, 14 counts of wire fraud, two counts of mail fraud and two counts of tax evasion for his role in a scheme to fraudulently gain control of condominium homeowners’ associations (HOAs) in the Las Vegas area in order to secure construction and other contracts for himself and others.

He also, willfully attempted to evade the payment of his individual income taxes by preparing and causing to be prepared false financial forms with the IRS in order to conceal income and assets.


Audi CEO arrested on charges of collusion

Volkswagen emissions scandal lingers; cost company$30B

Nathan Bomey

USA TODAY

The CEO of Audi was arrested in Germany on suspicion of his involvement in the Volkswagen emissions scandal.


Officer and Owner Liability for Corporate Tax by Phyllis Horn Epstein

Phyllis Epstein J.D. cautions that business owners who incorporate to limit personal liability may still be personally liable for corporate tax obligations and subject to criminal and civil penalties even if they have delegated the responsibility for paying taxes over to another officer, shareholder or employee.