SEC Charges Credit Suisse With FCPA Violations
Credit Suisse Group AG paid $77 million to settle SEC and DOJ charges for violating the FCPA by hiring over 100 relatives and associates of foreign government officials in Asia-Pacific as part of a quid pro quo scheme to win investment banking business, resulting in millions in illicit revenue.
Credit Suisse agreed to pay $77 million total—$30 million to the SEC and $47 million to the DOJ—to resolve FCPA violations stemming from a six-year scheme in which senior managers in the Asia-Pacific region hired more than 100 individuals connected to foreign officials as 'relationship hires' to secure investment banking contracts. The SEC found the bank violated the FCPA’s anti-bribery and internal accounting controls provisions, ordering disgorgement of $24.9 million plus $4.8 million in interest, while the DOJ imposed a $47 million criminal penalty. Credit Suisse admitted to systemic failures in oversight, with employees across subsidiaries aware of and sometimes approving the bypassed hiring protocols.
Credit Suisse Group AG agreed to pay $77 million to resolve FCPA charges brought by the SEC and DOJ for corrupt hiring practices in the Asia-Pacific region between 2010 and 2016. Senior managers systematically hired over 100 individuals connected to foreign government officials as 'relationship hires' or 'referral hires,' bypassing internal controls and creating a quid pro quo arrangement to win investment banking business worth millions of dollars. Although these hires violated the firm’s normal hiring protocols, employees in other Credit Suisse subsidiaries and affiliates were aware of the practice and in some cases approved it. The SEC found the bank violated both the anti-bribery and internal accounting controls provisions of the Securities Exchange Act of 1934, ordering disgorgement of $24.9 million plus $4.8 million in interest. The DOJ imposed a separate $47 million criminal penalty, bringing the total resolution to $77 million. The investigation was conducted jointly by the SEC’s FCPA Unit, the DOJ’s Fraud Section, the FBI, and the U.S. Attorney’s Office for the Eastern District of New York. Credit Suisse acknowledged systemic failures in oversight and cooperation with authorities as part of the settlement.
Exhibits & Attached Documents (1)
Extracted insights
- $47.00M $47 million $10M–$100M
- $30.00M $30 million $10M–$100M
- $24.90M $24.9 million $10M–$100M
- $4.80M $4.8 million $1M–$10M
- person charles cain
- person credit suisse
- agency Securities and Exchange Commission
- agency the assistance of the federal bureau of investigation
- agency the assistance of the fraud section of the department of justice
- agency the sec’s investigation
- Credit Suisse Group AG Pay Approximately $30 million
- Credit Suisse Agree to Pay $47 million criminal penalty
- Several senior Credit Suisse managers Seek to Win Business By hiring and promoting individuals connected to government officials
- Credit Suisse Offer to Hire More than 100 individuals referred by or connected to foreign government officials
- Charles Cain Say Bribery can take many forms, including granting employment to friends and relatives of government officials
- Credit Suisse Violate The anti-bribery and internal accounting controls provisions of the Securities Exchange Act of 1934
- Credit Suisse Agree to Pay Disgorgement of $24.9 million plus $4.8 million in interest
- Eric Heining and Paul G. Block Conduct The SEC’s investigation
- Rory Alex and Alfred Day Conduct The SEC’s investigation
- The SEC Appreciate The assistance of the Fraud Section of the Department of Justice
- The SEC Appreciate The assistance of the U.S. Attorney’s Office for the Eastern District of New York
- The SEC Appreciate The assistance of the Federal Bureau of Investigation
The Securities and Exchange Commission today announced that Credit Suisse Group AG will pay approximately $30 million to resolve SEC charges that it obtained investment banking business in the Asia-Pacific region by corruptly influencing foreign officials in violation of Foreign Corrupt Practices Act (FCPA). Credit Suisse also agreed to pay a $47 million criminal penalty to the U.S. Department of Justice. According to the SEC’s order, several senior Credit Suisse managers in the Asia-Pacific region sought to win business by hiring and promoting individuals connected to government officials as part of a quid pro quo arrangement. While the practice of hiring client referrals bypassed the firm’s normal hiring process, employees in other Credit Suisse subsidiaries and affiliates were aware of it and in some instances approved these “relationship hires” or “referral hires.” The SEC’s order found that in a six-year period, Credit Suisse offered to hire more than 100 individuals referred by or connected to foreign government officials, resulting in millions of dollars of business revenue. “Bribery can take many forms, including granting employment to friends and relatives of government officials. Credit Suisse’s practice of engaging in these hiring practices violated the law, and it is now being held to account for having done so,” said Charles Cain, Chief of the SEC Enforcement Division’s FCPA Unit. The SEC’s order finds that Credit Suisse violated the anti-bribery and internal accounting controls provisions of the Securities Exchange Act of 1934. Credit Suisse agreed to pay disgorgement of $24.9 million plus $4.8 million in interest to settle the SEC’s case. The SEC’s investigation was conducted by Eric Heining and Paul G. Block of the FCPA Unit and Rory Alex and Alfred Day of the Boston Regional Office. The SEC appreciates the assistance of the Fraud Section of the Department of Justice, the U.S. Attorney’s Office for the Eastern District of New York, and the Federal Bureau of Investigation. This version of the press release contains corrections to errors in the prior version.
The Securities and Exchange Commission today announced that Credit Suisse Group AG will pay approximately $30 million to resolve SEC charges that it obtained investment banking business in the Asia-Pacific region by corruptly influencing foreign officials in violation of Foreign Corrupt Practices Act (FCPA). Credit Suisse also agreed to pay a $47 million criminal penalty to the U.S. Department of Justice. According to the SEC’s order, several senior Credit Suisse managers in the Asia-Pacific region sought to win business by hiring and promoting individuals connected to government officials as part of a quid pro quo arrangement. While the practice of hiring client referrals bypassed the firm’s normal hiring process, employees in other Credit Suisse subsidiaries and affiliates were aware of it and in some instances approved these “relationship hires” or “referral hires.” The SEC’s order found that in a six-year period, Credit Suisse offered to hire more than 100 individuals referred by or connected to foreign government officials, resulting in millions of dollars of business revenue. “Bribery can take many forms, including granting employment to friends and relatives of government officials. Credit Suisse’s practice of engaging in these hiring practices violated the law, and it is now being held to account for having done so,” said Charles Cain, Chief of the SEC Enforcement Division’s FCPA Unit. The SEC’s order finds that Credit Suisse violated the anti-bribery and internal accounting controls provisions of the Securities Exchange Act of 1934. Credit Suisse agreed to pay disgorgement of $24.9 million plus $4.8 million in interest to settle the SEC’s case. The SEC’s investigation was conducted by Eric Heining and Paul G. Block of the FCPA Unit and Rory Alex and Alfred Day of the Boston Regional Office. The SEC appreciates the assistance of the Fraud Section of the Department of Justice, the U.S. Attorney’s Office for the Eastern District of New York, and the Federal Bureau of Investigation. This version of the press release contains corrections to errors in the prior version.