Articles Tagged with DOJ

Russian telecom companyRussia-based Mobile TeleSystems PJSC (MTS), the largest mobile telecommunications company in that country and an issuer of publicly traded securities in the United States, has settled with the Department of Justice and Securities and Exchange Commission (SEC) paying $850 million to resolve charges of paying bribes in Uzbekistan.  A former Uzbek official who is the daughter of the former president of Uzbekistan and the former CEO of Uzdunrobita LLC, another MTS subsidiary, were said to have participated in a bribery and money laundering scheme involving more than $865 million in bribes from MTS, VimpelCom Limited (now VEON) and Telia Company AB (Telia) to the former Uzbek official in order to secure her assistance in entering and maintaining their business operations in Uzbekistan’s telecommunications market.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Geoffrey S. Berman of the Southern District of New York, Special Agent in Charge Raymond Villanueva of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C. and Chief Don Fort of IRS Criminal Investigation (IRS-CI) made the announcement.

Gulnara Karimova, 46, a citizen of Uzbekistan, was charged in an indictment filed in the Southern District of New York on March 7 with one count of conspiracy to commit money laundering.  Karimova is a former Uzbek official who allegedly had influence over the Uzbek governmental body that regulated the telecom industry.  Bekhzod Akhmedov, 44, a citizen of Uzbekistan and the former Uzbek executive, was charged in the same indictment with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), two counts of violating the FCPA, and one count of conspiracy to commit money laundering.  Karimova’s and Akhmedov’s case is assigned to U.S. District Judge Kimba Wood of the Southern District of New York.

body-armour-300x200The founder and former president of Second Chance Body Armor, Richard Davis, has agreed to settle with the government after a sale of defective bullet proof vests that lead to life-threatening situations. The vests were purchased for federal, state, local and tribal law enforcement agencies. Under the False Claims Act, Davis will have to relinquish over a million dollars in assets.

The Bullet Proof Vests

Second Chance sold body armor to government agencies and then was reimbursed by the Department of Justice Bulletproof Vest Partnership (BVP) program. The DOJ alleged that Second Chance’s vests were defective when exposed to heat and humidity. They basically lose the ability to stop ballistic fire. The Department of Justice also claims that Davis knew about the faulty nature of the vests.

Suisse-bribe-allegations-300x200An investigation under the Foreign Corrupt Practices Act (FCPA) leads Credit Suisse, a business based in Zurich which offers financial services and counsel, to pay $47 million to the Department of Justice (DOJ). The Swiss financial giant was being investigated due to the employment methods of their Hong Kong unit, Credit Suisse Hong Kong Ltd., and paid the $47 million as a penalty to end the FCPA investigation by the DOJ and the SEC.

First disclosed by Credit Suisse in February of 2018, the reason for the investigation was their recruitment practices in Asia between the years of 2007 to 2013. The Securities and Exchange Commission (SEC) along with the DOJ was also involved in this investigation. Credit Suisse stated that the focus was on whether those hired were referred by government agencies or state-owned entities for investment approval. The latter would go against the FCPA which strictly prohibits business assistance as a bribe to foreign officials.

Credit Suisse and the DOJ have now reached a non-prosecution agreement in regards to this investigation with no criminal charges according to a statement from Credit Suisse’s Hong Kong unit posted on the company’s website.

opioid-300x200DOJ Takes a Step That Could Help in The Opioid Crisis

This week the Justice Department made a big move that could be a game changer for the nation’s opioid crisis. According to Cleveland.com, the DOJ will make a large swath of data on painkillers available, hoping the intel will be used in the fight against big pharma.

The DOJ has made its position clear when it comes to chasing after the legal makers and distributors of these drugs. Attorney General Jeff Sessions even went so far to create an Opioid Fraud Unit in order to target 12 federal districts the DOJ believes have been hardest hit by the opioid epidemic. The Opioid Fraud Unit uses data to find and target doctors or clinics they suspect are overprescribing opioids. They also want to go after pharmacists who are not properly distributing the pills. But with the release of this new data, they are hoping to help with settlement talks between the drug companies and the local governments suing them over the nation’s opioid epidemic.