Corporate Crime Report For 2/4/15

Corporate Criminals

Corporate Crime Headlines From Corporate Crime Reporter:

FCC to Fine AT&T $640,000: The Federal Communications Commission intends to fine AT&T Inc. $640,000 for allegedly operating numerous wireless stations throughout the United States without authorization over a multi-year period and failing to provide required license modification notices to the FCC.

FinCEN Fines Oppenheimer $20 Million: The Financial Crimes Enforcement Network (FinCEN) assessed a $20 million civil money penalty against Oppenheimer & Co., Inc., for willfully violating the Bank Secrecy Act (BSA).

Oppenheimer, a securities broker-dealer in New York, admitted that it failed to establish and implement an adequate anti-money laundering program, failed to conduct adequate due diligence on a foreign correspondent account, and failed to comply with requirements under Section 311 of the USA PATRIOT Act.

FinCEN and the New York Stock Exchange assessed a civil money penalty of $2.8 million against Oppenheimer in 2005 for similar violations.
In 2013, the Financial Industry Regulatory Authority fined the firm $1.4 million for violations of securities laws and anti-money laundering failures.

Community Health Systems Hospitals to Pay $75 Million to Settle False Claims Act Charge: Community Health Systems Professional Services Corporation (CHSPSC) and three affiliated New Mexico hospitals (CHS) will pay the United States $75 million to settle allegations that they violated the False Claims Act by making illegal donations to county governments which were used to fund the state share of Medicaid payments to the hospitals.

CHSPSC is based in Franklin, Tennessee, and manages more than 200 affiliated hospitals in 29 states.

“Congress expressly intended that states and counties use their own money when seeking federal matching funds in order to encourage them to join the federal government in ensuring that Medicaid funds are spent on the needs of beneficiaries,” said Justice Department Civil Division chief Joyce R. Branda. “When private hospitals violate the rules against hospital donations funding the state share, that important protection of the Medicaid program is destroyed.”

Standard & Poor’s Financial Services and its parent McGraw Hill Financial Inc. will pay $1.375 billion: to settle charges S&P engaged in a scheme to defraud investors in structured financial products known as Residential Mortgage-Backed Securities (RMBS) and Collateralized Debt Obligations (CDOs).

The agreement resolves the department’s 2013 lawsuit against S&P, along with the suits of 19 states and the District of Columbia.



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Filed under Banking regulation, Big Banks, Corporate Crime, Corporate Greed