Skip to main content

Deutsche Bank will pay $130m to avoid criminal charges that it bribed people to win business in Saudi Arabia and manipulated the metals markets to artificially boost prices

Deutsche Bank agreed Friday to pay fines and penalties of about $130 million to avoid a criminal prosecution on charges it participated in a foreign bribery scheme to win business in Saudi Arabia.

Lawyers for the bank, which has longstanding ties to President Donald Trump, waived its right to face an indictment on conspiracy charges during a teleconference with a federal judge in New York City.

According to court papers, Deutsche Bank bribed intermediaries to make deals in Saudi Arabia between 2009 and 2016, labeling the payments as 'referral fees' for consultants. 

In one instance around 2012, the bank paid one of its fixers $1,087,538 'and caused those payments to be falsely recorded in the company's books, records and accounts,' the papers said.

Deutsche Bank has agreed to pay a fine of more than $100 million to avoid a criminal prosecution on charges it participated in a foreign bribery scheme

Deutsche Bank has agreed to pay a fine of more than $100 million to avoid a criminal prosecution on charges it participated in a foreign bribery scheme

Other intermediaries demanded financing for a yacht and for a house in France as compensation, the papers said.

Prosecutors accused Deutsche Bank of violating books-and-records provisions of the FCPA, which forbids companies with U.S. operations from paying bribes elsewhere.

They said the violations included disguising bribes paid to a client's 'decisionmaker' in Saudi Arabia as 'referral fees,' and recording millions of dollars of payments to an intermediary for an Abu Dhabi official as 'consultancy' fees.

In the metals case, prosecutors accused Deutsche Bank traders of placing fraudulent trades, known as spoofing, to induce other traders to buy and sell futures contracts at prices they otherwise would not have. 

Christian Sewing, CEO of German company Deutsche Bank which waived its right to face an indictment on conspiracy charges on Friday, during a teleconference with a federal judge in New York City

Christian Sewing, CEO of German company Deutsche Bank which waived its right to face an indictment on conspiracy charges on Friday, during a teleconference with a federal judge in New York City

After a two-week trial, James Vorley, 42, of the United Kingdom, and Cedric Chanu, 40, of France and the United Arab Emirates, were convicted of three counts and seven counts, respectively, of wire fraud affecting a financial institution.  

Vorley and Chanu, who were employed as traders at Deutsche Bank—Vorley based in London; Chanu based in London and Singapore—engaged in a scheme to defraud other traders on the Commodity Exchange. 

The defendants defrauded other traders by placing fraudulent orders that they did not intend to execute in order to create the appearance of false supply and demand and to induce other traders to trade at prices, quantities, and times that they otherwise would not have traded. 

Specifically, the evidence showed that the defendants engaged in the practice of “spoofing,” which means that they placed orders on the exchange which, at the time the orders were placed, they did not intend to execute, all for the purpose of deceiving other market participants. 

Sentencing has been scheduled for January 21, 2021, before U.S. District Judge John J. Tharp, Jr. of the Northern District of Illinois, who presided over the trial. 

The penalties against Deutsche Bank included a criminal fine of $85,186,206 and a payment of $43,329,622 to settle a related U.S. Securities and Exchange Commission action, prosecutors said.

In 2019, Deutsche Bank agreed to pay $16.2 million to resolve SEC charges it violated the FCPA by hiring unqualified relatives of government officials in China and Russia in order to win or retain business. 

'Deutsche Bank engaged in a criminal scheme to conceal payments to so-called consultants worldwide who served as conduits for bribes to foreign officials and others,' in order to win and retain 'lucrative business projects,' Acting U.S. Attorney Seth DuCharme in Brooklyn said in a statement.  

A Deutsche Bank spokesperson, Dan Hunter, declined to comment on the specifics of the case. But he said that the deferred prosecution agreement showed that the bank was taking responsibility for its actions and that its cooperation with federal authorities 'reflect our transparency and determination to put these matters firmly in the past.'

 'We take responsibility for these past actions,' which occurred from 2008 to 2017, following 'thorough' internal probes and full cooperation with authorities, Hunter said.     

Deutsche Bank has been trying to restore profitability after five years of losses, including by exiting some businesses and reducing its workforce by 18,000.

It has also been trying to restore its image in Washington amid several investigations into its dealings with U.S. President Donald Trump, a longtime client.

His personal business association with a bank has been under scrutiny for years.

(PA)

Deutsche Bank was one of the few banks willing to lend to Trump after a series of corporate bankruptcies starting in the early 1990s and has become central to investigations by Manhattan District Attorney Cyrus R. Vance and New York Attorney General Letitia James that are considered a potential legal threat to Trump after he leaves office this month.

Vance and James, both Democrats, have subpoenaed the bank for documents related to the president. Trump has said the investigations are all politically motivated.

There was no indication that the Saudi Arabia scheme was related to Trump's dealings with the bank.

In previous cases, the Frankfurt, Germany-based bank has agreed to a Securities and Exchange Commission fine of $16 million to resolve separate allegations of corrupt dealings in Russia and China.

Deutsche has also agreed to pay the state of New York $150 million to settle claims that it broke compliance rules in its dealings with sex offender Jeffrey Epstein.  

The wealthy financier killed himself last August in a Manhattan federal jail while awaiting trial on sex trafficking charges.

There were reports last year that the bank gave expensive gifts to senior Chinese officials and others establish itself as a major player in China's financial industry.

Popular posts from this blog

Study Abroad USA, College of Charleston, Popular Courses, Alumni

Thinking for Study Abroad USA. School of Charleston, the wonderful grounds is situated in the actual middle of a verifiable city - Charleston. Get snatched up by the wonderful and customary engineering, beautiful pathways, or look at the advanced steel and glass building which houses the School of Business. The grounds additionally gives students simple admittance to a few major tech organizations like Amazon's CreateSpace, Google, TwitPic, and so on. The school offers students nearby as well as off-grounds convenience going from completely outfitted home lobbies to memorable homes. It is prepared to offer different types of assistance and facilities like clubs, associations, sporting exercises, support administrations, etc. To put it plainly, the school grounds is rising with energy and there will never be a dull second for students at the College of Charleston. Concentrate on Abroad USA is improving and remunerating for your future. The energetic grounds likewise houses various

Best MBA Online Colleges in the USA

“Opportunities never open, instead we create them for us”. Beginning with this amazing saying, let’s unbox today’s knowledge. Love Business and marketing? Want to make a high-paid career in business administration? Well, if yes, then mate, we have got you something amazing to do!   We all imagine an effortless future with a cozy house and a laptop. Well, well! You can make this happen. Today, with this guide, we will be exploring some of the top-notch online MBA universities and institutes in the USA. Let’s get started! Why learn Online MBA from the USA? Access to More Options This online era has given a second chance to children who want to reflect on their careers while managing their hectic schedules. In this, the internet has played a very crucial in rejuvenating schools, institutes, and colleges to give the best education to students across the globe. Graduating with Less Debt Regular classes from high reputed institutes often charge heavy tuition fees. However onl

Sickening moment maskless 'Karen' COUGHS in the face of grocery store customer, then claims she doesn't have to wear a mask because she 'isn't sick'

A woman was captured on camera following a customer through a supermarket as she coughs on her after claiming she does not need a mask because she is not sick.  Video of the incident, which has garnered hundreds of thousands of views on Twitter alone, allegedly took place in a Su per Saver in Lincoln, Nebraska according to Twitter user @davenewworld_2. In it, an unidentified woman was captured dramatically coughing as she smiles saying 'Excuse me! I'm coming through' in the direction of the customer recording her. Scroll down for video An unidentified woman was captured dramatically coughing as she smiles saying 'Excuse me! I'm coming through' in the direction of a woman recording her A woman was captured on camera following a customer as she coughs on her in a supermarket without a mask on claiming she does not need one because she is not sick @chaiteabugz #karen #covid #karens #karensgonewild #karensalert #masks we were just wearing a mask at the store. ¿ o