Tag Archives: White Collar Crime / Fraud / Corporate Crime

UPDATE 1-Samsung Heavy South Korea completed a $ 149 million Brazilian corruption investigation | Instant News

(Added Samsung Heavy archives; paragraph 4)

BRASILIA, February 23 (Reuters) – South Korean shipbuilder Samsung Heavy Industries agreed to pay 812 million reais ($ 148.56 million) in a waiver deal with Brazilian authorities to complete a corruption investigation, federal prosecutors said late Monday.

On its website, the prosecutor’s office said the deal was part of global negotiations between US and Brazilian companies and authorities to resolve alleged crimes over contracts with state-owned oil maker Petroleo Brasileiro SA.

A Samsung Heavy representative confirmed that the company signed a pact with Brazilian authorities but declined to comment further, saying more information would be disclosed in the regulatory filing.

In Tuesday’s regulatory filing, Samsung Heavy said, “The company has accepted and approved the results of the Brazilian authorities’ investigation to resolve management uncertainties, which may arise from the litigation process, if it lasts long.”

Petrobras, as Brazil’s company is called informally, is at the center of an investigation into Operation Car Wash, Brazil’s biggest corruption scandal, which has involved hundreds of government officials and businesses since 2014.

US authorities have been involved in past settlement deals related to the Petrobras corruption investigation because the company has US-listed storage shares.

Under the agreement, Petrobras will receive compensation of 706 million reais, while Samsung Heavy will pay a fine of 106 million reais to the government. ($ 1 = 5,4659 reais) (Reporting by Ricardo Brito and Jake Spring; Additional reporting by Heekyong Yang in Seoul; Editing by Aurora Ellis and Clarence Fernandez)


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Third state in Australia to make a strong investigation into Crown Resorts | Instant News

SYDNEY, February 22 (Reuters) – Australia’s state of Victoria said on Monday it would hold a royal commission investigation into casino operator Crown Resorts Ltd and its suitability to hold a gambling license, extending its impact as media accuses it of money laundering links.

A week and a half since other state regulators found Crown unfit for a gambling license for Sydney’s newly opened casino, the Victorian government said it would conduct its own investigation. Royal commissions are the most powerful type of public inquiry in Australia and have the power to compel witnesses.

“Establishing a royal commission will ensure the most appropriate access to information regarding Crown Melbourne’s suitability to hold a casino license given the commission’s powers to coerce witnesses and documentation,” Victorian Prime Minister Daniel Andrews said in a statement.

A spokesman for Crown could not be reached for comment. Crown separately said on Monday that director Harold Mitchell, an advertising industry veteran, had left the board, following a number of other top executives including its CEO to leave since the Sydney report.

The Victoria probe will be the third state probe against Crown as Australian media reports accuse the company that is one-third owned by billionaire James Packer of doing business with tour operators linked to organized crime. Crown initially denied the allegations but admitted at a Sydney 2020 investigation that some of the claims were true.

The Western Australian state government also said last week it would launch an investigation into Crown, which owns a casino in the city of Perth.

Crown’s Melbourne Casino is its biggest source of revenue since the company exited its offshore interests following the mass arrests of its staff in China in 2015 for violating a law banning the marketing of gambling holidays.

The Sydney corporate casino opened in December with a restaurant, bar, hotel rooms and luxury apartments but not with gambling as the state regulator suspended its license due to the investigation. (Reporting by Byron Kaye; Editing by Christopher Cushing)


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Germany ordered Greece’s Piraeus Bank to step up prevention of money laundering | Instant News

FRANKFURT, February 17 (Reuters) – German financial watchdog BaFin has ordered Greek lending bank Piraeus Bank’s Frankfurt branch to take steps to prevent money laundering and terror financing.

BaFin disclosed the order on Wednesday, but the request was made on January 13. The statement did not provide further details.

Piraeus Bank is one of the four largest banks in Greece. Its main shareholder is the Hellenic Financial Stability Fund (HFSF) bank rescue fund with a 61% stake.

BaFin and the Frankfurt branch lender did not immediately respond to requests for comment.

Reporting by Tom Sims in Frankfurt and Georgiopoulos in Athens; Edited by Edmund Blair


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UPDATE 2-Western Australian watchdog investigations into Crown Resorts deal a new blow to the outlook | Instant News

(Added WA question details, share price)

February 17 (Reuters) – Western Australian gambling watchdog announces an investigation into the Crown Resorts casino in Perth, a new blow to the company as it grapples with a decision last week that it is not eligible to hold a gambling license for its new flagship Sydney resort.

Wednesday’s news raised further uncertainty over the future direction of Crown, and followed a separate year-long investigation by the New South Wales (NSW) state watchdog that uncovered widespread money laundering and governance problems at corporate casinos in Melbourne.

The report last Tuesday called for sweeping changes to Crown’s board and culture and led to the resignation of four directors, including the CEO. The report’s recommendation for a 10% shareholding limit for casino operators could also force major shareholder James Packer to divest part of his 36% stake.

The most recent investigation highlighted two Crown casinos already operating in Australia – in Melbourne and Perth.

The Western Australian Gaming and Betting Commission said an independent investigation would have broad powers from the Royal Commission and would see whether Crown Perth should have a gaming license under the NSW report.

Crown shares fell as much as 1.4% to A $ 9.62, underperforming in the broader market that was 0.5% lower.

Crown, which has lost more than a fifth of its value since this time last year, said it would work with the Commission to regain trust.

“Crown is determined to play a constructive role with all of its regulators as it works to restore public confidence and regulation in its operations,” said Helen Coonan, Crown Executive Chairman. (Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Richard Pullin & Shri Navaratnam)


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