Compliance & Ethics

During the height of the COVID-19 pandemic, the Paycheck Protection Program (PPP) was more than just financial aid—it was a lifeline for small businesses fighting to survive. But for Unified Care Services LLC, a chain of skilled nursing facilities based in Torrance, California, it became the focal point of an $18 million settlement for alleged fraud. This case serves as a sobering reminder of the consequences when businesses misuse taxpayer-funded programs meant to provide relief.

The Securities and Exchange Commission (SEC) has recently announced settlements with Wells Fargo and Merrill Lynch over compliance failures related to their cash sweep programs. Combined, the firms will pay $60 million in civil penalties.

The Securities and Exchange Commission (SEC) is taking a tough stand against Two Sigma Investments LP and Two Sigma Advisers LP, two major New York-based investment advisers, for neglecting to fix known vulnerabilities in their investment models, resulting in potential harm to clients. The SEC’s order also highlights a disturbing breach of whistleblower protections that puts a dark cloud over the firm’s reputation.

American Express Company (AMEX) has agreed to pay an estimated $230 million to resolve legal claims arising from deceptive marketing practices and false tax advice related to its Payroll Rewards and Premium Wire products. The multi-faceted settlement includes both civil and criminal resolutions with the U.S. Department of Justice (DOJ), the U.S. Attorney’s Office for the Eastern District of New York, and an expected penalty agreement with the Federal Reserve, which AMEX said is included in the roughly $230 million total.

Imagine this scenario where a construction equipment giant imports sleek, modern machines, but beneath their polished exteriors the engines are churning out emissions from another era. Between 2014 and 2018, Fayat S.A.S. and its nine subsidiaries, including recognizable names like BOMAG and MARINI, introduced hundreds of nonroad machines into the US market with diesel engines that flouted Clean Air Act standards. The result was a lawsuit, an $11 million penalty, and a clear reminder that accountability always prevails.

As 2025 approaches, the French Autorité des Marchés Financiers (AMF) is ready to set its sights on some critical areas of financial supervision. With a clear focus on navigating the evolving landscape of asset management, market infrastructures, and financial product marketing, the AMF is positioning itself to be a vigilant guardian of investor protection and market integrity. But this is more than just routine oversight – it’s about tackling specific risks and ensuring that firms, from asset managers to intermediaries, are keeping pace with changing regulations and increasing market complexity.

In a major settlement, Hino Motors, a subsidiary of Toyota Motor Corporation, has agreed to plead guilty to criminal conspiracy charges and pay a staggering $1.6 billion to resolve allegations of emissions fraud. The U.S. Department of Justice (DOJ), Environmental Protection Agency (EPA), and a host of other federal and state agencies announced the resolution, which includes criminal fines, civil penalties, and a series of corrective measures.