Compliance & Ethics

Federal investigators are delving into allegations that funds from Tesla, the innovative electric car company led by CEO Elon Musk, were potentially misappropriated for the development of a massive glass house for Musk himself. The inquiries, spearheaded by both the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC), are aimed at ascertaining whether company resources were improperly diverted for personal use.

The U.S. Securities and Exchange Commission (SEC) has taken action against Citigroup Global Markets Inc, issuing a cease-and-desist order in response to alleged willful violations of record-keeping requirements within the company's underwriting business. The order comes with a $2.9 million penalty, and while Citigroup has agreed to the terms, it has not admitted to the findings.

The Financial Conduct Authority (FCA) has taken action against Raymond James Investment Services, placing several restrictions on the firm's activities. The restrictions come as part of an effort to regulate the company's operations and safeguard investor interests.

3M, the prominent American multinational corporation, has recently entered a $6 billion settlement to conclude the largest single mass tort in U.S. history. This settlement follows a separate agreement reached in June to pay up to $12.5 billion for the resolution of litigation involving "forever chemicals." Despite these settlements, the company's legal difficulties persist, impacting its financial standing and operational outlook.

The Consumer Financial Protection Bureau (CFPB) is set to establish new regulations governing data brokers, with the aim of safeguarding consumer data and privacy. The move follows concerns about the misuse of personal information by data brokers, which has the potential to impact crucial decisions such as employment and financial approvals.

Archipelago Trading Services Inc. (ATSI), a Chicago-based broker-dealer, faces substantial penalties from the Securities and Exchange Commission (SEC) for neglecting to file legally mandated Suspicious Activity Reports (SARs) related to over-the-counter (OTC) securities transactions.

Commodity Futures Trading Commission (CFTC) has imposed a $5.5 million civil monetary penalty on Goldman Sachs & Co. in response to recordkeeping violations and failure to adhere to prior cease-and-desist orders.