Securities regulators are considering charges against Bank of New York Mellon, alleging that it violated federal bribery laws by giving internships to relatives of foreign officials to win business managing investments for their country.
The Bank of New York Mellon disclosed in a regulatory filing that Securities and Exchange Commission investigators told them that they intended to recommend charges against the bank for violating the Foreign Corrupt Practices Act. The violations of federal bribery laws were for giving internships to relatives of foreign officials to win business managing investments for their countryThe bank isn’t facing formal charges yet, but regulators appear ready to hold the institution up as an example as they crack down on hiring practices at financial firms..
The SEC can choose to bring a civil lawsuit or administrative penalties, such as cease and desist orders, suspension of investment adviser registrations or monetary penalties.
Last year, Alcoa Inc. agreed to pay $384 million to settle charges of bribing officials of a Bahraini state-controlled aluminum smelter to win business.
The largest settlement was $800 million by European engineering company Siemens in 2008, Koehler said, though he doubted BNY Mellon’s case would bring such a large price.
Jeffrey Newman represents whistleblowers