Category: General

Under Armour Agrees to Pay $9 Million to Settle SEC Charges it Mislead Investors About Revenue Growth

Under Armour settled its long-pending SEC investigation by agreeing to pay $9 million surrounding misleading statements and practices relating to its revenue growth and uncertainties as to future growth.  As part of the settlement, the SEC declined to bring charges against its CEO, Kevin Plank, and its CFO, David Bergman. The Justice Department inquiry appears to have lost steam since the middle of last year,...

Swiss Life and Three Subsidiaries Agree to Pay Justice Department More Than $77 Million for Conspiracy with U.S. Taxpayers to Hide Assets and Income

In the run-up to the deadline for filing federal taxes, the Justice Department has a well-established practice of bringing tax-related enforcement cases against crooked tax preparers, fraudsters and corporate entities as an important reminder on the importance of tax compliance.  For years, the Justice Department struggled to bring Swiss banks to the enforcement table and eventually was successful in building cooperation in enforcement matters.  It...

MoneyGram Payment Systems Agrees to Pay OFAC $34k for Sanctions Violations

MoneyGram settled with OFAC for $34,329 for 359 sanctions programs violations.  MoneyGram is a global payments service. According to OFAC, the 359 transactions totaled $105,627 in value and were processed on behalf of approximately 40 individuals on OFAC’s Specially Designated Nationals list (SDN List). MoneyGram has been operating under a monitor imposed in 2012 U.S. Department of Justice settlement to ensure MoneyGram’s enhancement of its...

EU Mandatory ESG Due Diligence

Alex Cotoia, Regulatory Compliance Manager, at The Volkov Law Group, rejoins us for a posting on ESG due diligence requirements. Alex can be reached at acotoia@volkovlaw.com. On March 10, 2021—by an overwhelming majority—the European Parliament passed a resolution that directs the European Commission to move forward with a formal directive (“Directive”) mandating Environmental, Social and Governance (“ESG”) due diligence by companies throughout their value chains....

The Headline from the SAP Settlement: It’s a New Dawn for Export and Sanctions Compliance (Part IV of IV)

The Department of Justice’s National Security Division, like its counterpart, the Criminal Division, has made a splash on the enforcement and compliance arena. DOJ has elevated the importance and standing of export and sanctions enforcement to make one message clear – DOJ will hold companies accountable for criminal violations of U.S. export and sanctions laws.  And it will do so with the carrot and stick...

SAP’s Comprehensive Export Control and Sanctions Settlement – A New Compliance Frontier for Cloud-Based Services (Part III of IV)

The Justice Department’s National Security Division used the SAP comprehensive settlement of export control and sanctions violations to send a message – a loud and clear one. As the first real flexing of its Business Organizations Corporate Enforcement policy, the Justice Department underscored that companies that voluntarily disclose illegal conduct, fully cooperate, and implement timely and robust remediation will earn a non-prosecution agreement or deferred...

SAP’s Export Control and Sanctions Failures Results in Numerous Violations of Iran Sanctions Program (Part II of IV)

When reviewing factual reports of global corporate failures – be it FCPA, sanctions, export controls, or anti-money laundering schemes and systemic misconduct schemes – the story appears to follow a familiar pattern.  A company starts with inadequate compliance controls, engages in violations driven by the desire to earn money and increase business, learns about the violations through an internal audit, compliance program assessment and/or whistleblower...

SAP Reaches Broad Settlement and Agrees to Pay More Than $8 Million for Violations of Iran Sanctions Program (Part I of IV)

In a precedent-setting agreement, the Justice Department, OFAC and the Bureau of Industry and Security announced a settlement with SAP SE for more than $8 million for numerous violations of the Iran Sanctions program. While the Justice Department’s National Security Division (“NSD”) has settled prior export control and sanctions cases against corporations for violations of the North Korea Sanctions program, the SAP case is the...

SEC Risk Alert on ESG Investing

I have written extensively about the new and hot business trend – environmental, social and governance programs (“ESG”).  The luster surrounding ESG has been a significant business trend and priority. Like any new trend, the SEC as an important protector of investor interests issued a Risk Alert for investment products and financial services that include ESG factors.  Investors are demanding investment products and financial services...