Month: December 2011

Banking News – CDR pleads guilty in bid-rigging probe
&nbspUS company at centre of five-year investigation now faces fines of up to $100m while its founder David Rubin could receive prison and fines
Fiscal Times – Fiscal Air force – http://www.ft.com/cms/s/0/cb771f20-3326-11e1-8e0d-00144feabdc0.html?ftcamp=rss

Banking News – SocGen unit to stay away from China IPOs
&nbspFrench bank says legal and reputational risks too much in current market
FT.com – Banks – http://www.ft.com/cms/s/0/920409b4-32c8-11e1-8e0d-00144feabdc0.html?ftcamp=rss

Banking News – Departure deals fresh blow to Plus Markets
&nbspThe head of derivatives affair leaves after a year in the job, the latest setback for the junior chat that has seen five years of losses
Fiscal Times – Fiscal Air force – http://www.ft.com/cms/s/0/d2f3d598-3242-11e1-9be2-00144feabdc0.html?ftcamp=rss

Banking News – Wellcome Trust makes venture capital bet
&nbspThe UK charity raises its venture and growth capital worth as it looks to profit from probable listings of internet companies such as Facebook and Twitter
Fiscal Times – Fiscal Air force – http://www.ft.com/cms/s/0/ead3d26a-3177-11e1-a62a-00144feabdc0.html?ftcamp=rss

Banking News – Ermotti under difficulty to turn round UBS
&nbspScarcely a bank in the world will emerge unconcerned from 2011, but UBS has been through 12 months to cap them all
Fiscal Times – Fiscal Air force – http://www.ft.com/cms/s/0/137627e4-3246-11e1-b4ba-00144feabdc0.html?ftcamp=rss

Banking News – India suspends banks from new listings
&nbspThe Securities and Chat Board of India suspends several investment banks from new share sales and warns that it will fix IPO rules
Fiscal Times – Fiscal Air force – http://www.ft.com/cms/s/0/571a0b00-322d-11e1-b4ba-00144feabdc0.html?ftcamp=rss

Banking News – Ermotti under difficulty to turn round UBS
&nbspScarcely a bank in the world will emerge unconcerned from 2011, but UBS has been through 12 months to cap them all
FT.com – Banks – http://www.ft.com/cms/s/0/137627e4-3246-11e1-b4ba-00144feabdc0.html?ftcamp=rss

Banking News – India’s savers unmoved by deregulation
&nbspShake-up in appeal rate rules yet to turn into better deals for depositors
FT.com – Banks – http://www.ft.com/cms/s/0/e0bff67e-32de-11e1-a51e-00144feabdc0.html?ftcamp=rss

Banking News – SocGen to stay away from China IPOs
&nbspFrench bank says legal and reputational risks too much in current market
FT.com – Banks – http://www.ft.com/cms/s/0/920409b4-32c8-11e1-8e0d-00144feabdc0.html?ftcamp=rss

Banking News – VTB buys stake in metals company
&nbspRussia’s second-largest bank has bought 20% of Metalloinvest for $2.5bn from Vasily Anisimov, whose company Coalco Metals owes VTB $1.5bn
FT.com – Banks – http://www.ft.com/cms/s/0/b9374584-3244-11e1-9be2-00144feabdc0.html?ftcamp=rss

Banking News – SEC Charges Magyar Telekom and Former Executives with Bribing Officials in Macedonia and Montenegro
&nbsp

Firm and Parent Company Agree to Pay $95 Million to Settle Civil and Criminal Charges

FOR IMMEDIATE RELEASE
2011-279

Washington, D.C., Dec. 29, 2011 — The Securities and Chat Fee today charged the largest telecommunications source in Hungary and three of its former top executives with bribing regime and biased party officials in Macedonia and Montenegro to win affair and shut out struggle in the telecommunications diligence.

The SEC alleges that three senior executives at Magyar Telekom Plc. orchestrated, ordinary, and executed a plot to bribe Macedonian officials in 2005 and 2006 to prevent the initiation of a new competitor and gain other dictatorial refund. Magyar Telekom’s subsidiaries in Macedonia made illegal payments of approximately $6 million under the guise of bogus consulting and marketing contracts. The same executives orchestrated a second scheme in 2005 in Montenegro related to Magyar Telekom’s acquisition of the state-owned telecommunications company there. Magyar Telekom paid approximately $9 million through four sham contracts to funnel money to regime officials in Montenegro.

Magyar Telekom’s parent company Deutsche Telekom AG also is charged with books and records and domestic reins violations of the Foreign Corrupt Practices Act (FCPA).

Magyar Telekom agreed to settle the SEC’s charges by paying more than $31.2 million in disgorgement and pre-discrimination appeal. Magyar Telekom also agreed to pay a $59.6 million criminal penalty as part of a late prosecution contract announced today by the U.S. Sphere of Justice. Deutsche Telekom settled the SEC’s charges, and as part of a non-prosecution contract with the Sphere of Justice agreed to pay a penalty of $4.36 million.

“Magyar Telekom’s senior executives used sham contracts to funnel millions of dollars in corrupt payments to foreign officials who could help them keep competitors out and win affair,” said Kara Novaco Brockmeyer, Chief of the SEC Enforcement Rift’s FCPA Unit. “They consciously structured the sham contracts to dodge domestic review, and when questions were eventually raised about their use of ‘consulting’ contracts, they reconfigured them as ‘marketing’ contracts to avoid analysis and prolong their scheme.”

The three former top executives at Magyar Telekom charged by the SEC for orchestrating the bribery schemes are:

• Elek Straub, former Chairman and CEO.
• Andras Balogh, former Boss of Central Strategic Establishment.
• Tamas Morvai, former Boss of Affair Enhancement and Acquisitions.

According to the SEC’s complaints filed in the Southern Constituency of New York, in the wake of legislation projected to loosen the Macedonian telecommunications market, Magyar Telekom entered into a secret contract free the “Protocol of Cooperation” with senior Macedonian regime officials to delay or disqualify the issuance of a license to a new competitor and allay other adverse effects of the new law. To win their support, Magyar Telekom paid €4.875 million to a third-party speaker under a series of sham contracts with the aim that the speaker would forward money to the regime officials. Magyar Telekom also promised a Macedonian biased party the chance to designate the receiver of a affair venture in chat for the party’s support.

The SEC further alleges that in Montenegro, Magyar Telekom used peace corps to pay bribes to regime officials in return for their support of Magyar Telekom’s acquisition of the state-owned telecommunications company on terms favorable to Magyar Telekom. At least two Montenegrin regime officials caught up in the acquisition expected payments made through the bogus contracts. A family member of a top Montenegrin regime authoritative also expected payments.

The SEC’s protest against Straub, Balogh, and Morvai alleges that they debased or aided and abetted violations of the anti-bribery, books and records, and domestic reins provisions of the FCPA; eloquently circumvented domestic reins and anecdotal books and records; and made fake statements to the company’s auditor. The SEC seeks disgorgement and penalties and the annoyance of stable injunctions. Magyar Telekom and Deutsche Telekom consented to the entry of final judgments without admitting or denying the SEC’s allegations. The settlements are subject to court praise.

The SEC’s case was investigated by Adam Eisner under the supervision of Charles Cain, Deputy Chief of the FCPA Unit. Robert Dodge will lead the SEC’s legal action efforts. The SEC acknowledges the help of the Fraud Section of the Sphere of Justice’s Criminal Rift and the Federal Bureau of Investigation. The SEC also acknowledges the help provided by the Hungarian Fiscal Management Power, the German Federal Fiscal Management Power (BaFin), and the Swiss Office of the Attorney General.

# # #

For more in rank about this enforcement action, contact:

Kara Novaco Brockmeyer
Chief, FCPA Unit, SEC Rift of Enforcement
202-551-4767

Charles Cain
Deputy Chief, FCPA Unit, SEC Rift of Enforcement
202-551-4911

SEC.gov Updates: Press Releases – http://www.sec.gov/news/press/2011/2011-279.htm

Banking News – India bans banks from new listings
&nbspThe Securities and Chat Board of India suspends several investment banks from new share sales and warns it will fix IPO rules
Fiscal Times – Fiscal Air force – http://www.ft.com/cms/s/0/571a0b00-322d-11e1-b4ba-00144feabdc0.html?ftcamp=rss

Banking News – Accountants find cause for cool amid the storm
&nbspBut despite signs of faith, no one is ruling out a recommencement of the mayhem of three years ago
Fiscal Times – Fiscal Air force – http://www.ft.com/cms/s/0/c67fb8dc-2d50-11e1-b985-00144feabdc0.html?ftcamp=rss

Banking News – India bans banks from new listings
&nbspThe Securities and Chat Board of India suspends several investment banks from new share sales and warns it will fix IPO rules
FT.com – Banks – http://www.ft.com/cms/s/0/571a0b00-322d-11e1-b4ba-00144feabdc0.html?ftcamp=rss

Banking News – Bank parameter battle focuses on liquidity
&nbspThe diligence is set to step up its lobbying over plotted rules on the amount and type of buffer assets to be held in case of a market crisis
FT.com – Banks – http://www.ft.com/cms/s/0/7011eabc-25b0-11e1-9c76-00144feabdc0.html?ftcamp=rss