German banking giant Deutsche Bank AG is paying over US$130 million to resolve allegations that it violated anti-bribery laws and securities laws.
The U.S. Department of Justice (DoJ) and the U.S. Securities and Exchange Commission (SEC) both announced settlements with Deutsche Bank that include US$85.2 million in criminal penalties, $43.3 million in disgorgement and interest to the SEC, US$1.2 million in victim compensation and almost $700,000 in criminal disgorgement.
The sanctions resolve allegations related to the bank’s involvement in concealing a bribery scheme, related internal control violations and a separate commodity fraud scheme that involved precious metals futures traded on exchanges operated by CME Group Inc.
In federal court in Brooklyn, N.Y., on Friday the bank entered into a three-year deferred prosecution agreement with U.S. attorney’s office for the Eastern District of New York.
It was charged with one count of conspiracy to violate the books and records and internal accounting controls provisions of anti-corruption laws and one count of conspiracy to commit wire fraud.
“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 so that they could unfairly obtain and retain lucrative business projects,” said Seth DuCharme, acting U.S. attorney for the Eastern District of New York, in a release.
The SEC’s order found that the bank violated the books and records and internal accounting controls provisions of the securities laws. It agreed to a cease-and-desist order and to pay disgorgement. The SEC did not impose a civil penalty in light of the related criminal penalty.
In the commodities fraud case, the DoJ alleged that traders on Deutsche Bank’s precious metals desks in New York, Singapore, and London sought to dupe other traders by entering orders they planned to cancel without executing.
Last year, a U.S. federal jury convicted two former Deutsche Bank traders on wire fraud charges for their roles in the scheme. A third trader pled guilty, and another is still awaiting trial.