Included in this issue: Former Directors of Defence Firm Jailed; Cantor-Funded settles Money Laundering Probe; Financial Fraud incidents increased in first half of 2016 and more...

Bribery and Corruption

Former Directors of Defence Firm Jailed

Robert Gillam and Simon Davis, two former Directors of Mondial Defence Systems, admitted to the payment of bribes to secure deals for the Doset-based defence company.

Mr Gillam was jailed for two years and Mr Davis was given an 11 month sentence. Both individuals were disqualified from acting as company directors.

BBC, 28 September 2016

GSK settles with the SEC

GSK has settled with the US Securities and Exchange Commission (SEC) in respect of the SEC's allegations that employees and agents of GSK's Chinese subsidiary and Chinese joint-venture paid bribes to foreign officials for the purpose of increasing sales of GSK products in China. In respect of this alleged misconduct, the SEC say that GSK breached the internal controls and record keeping provisions of the US Foreign Corrupt Practices Act 1977.

It is understood that GSK agreed to settle the matter for $20 million on a no-admissions basis.

The Securities and Exchange Commission, 01 October 2016

Hedge Fund settles U.S. Foreign Bribery Charges

Och-Ziff Capital Management Group has, for $200 million, settled an investigation by the SEC. The SEC alleged that the fund had breached provisions of the Foreign Corrupt Practices Act 1977 by using intermediaries, agents and business partners to pay bribes to African government officials.

It is understood that Och-Ziff settled the matter for $200 million on a no-admissions basis.

The Securities and Exchange Commission, 29 September 2016

Money Laundering

Cantor-Funded settles Money Laundering Probe

CG Technology, a gambling and gaming business funded by Cantor Fitzgerald, has been investigated by a number of US authorities in relation to alleged illegal gambling and money laundering.

It is reported that the company agreed to settle these investigations for $22.5 million.

Bloomberg, 03 October 2016


Financial Fraud incidents increased in first half of 2016

Financial Fraud Action UK has published figures showing that there has been a 53% increase in the first six months of 2016, in comparison to the same time period in 2015.

Action Fraud, 20 September 2016

US Hospital Chain settles with U.S. Justice Department

Tenet Healthcare Corporation, a major hospital chain in the US, has agreed to a $513 million settlement with the US Justice Department in relation to a fraudulent scheme and kickbacks paid in relation to patient referrals.

US Department of Justice, 03 October 2016


Potential EU Sanctions on Russia

It has been reported that Germany is considering implementing further European sanctions against Russia as a result of Russia's involvement in the Syrian conflict.

Nasdaq, 05 October 2016

Health and Safety

Tesco fined £500,000 after worker falls through supermarket roof

Tesco has been fined a total of £500,000 after a worker, Mr Burgess, fell 30-feet through a fragile skylight while working with three other colleagues on the roof of the Tesco Express in Liscard. The plastic skylight was not marked as fragile. Mr Burgess sustained cuts and bruises and some muscle damage as a result of the fall.

Tesco Maintenance Ltd, which is group company of Tesco Stores, pleaded guilty to two health and safety breaches involving failing to ensure safety and Tesco Stores admitted one similar breach.

SHP, 04 October 2016

Contractor seriously injured in fragile skylight fall

London exhibition venue firm, The Business Design Centre Ltd, and a building contractor have been fined £300,000 for safety failings after a specialist contractor fell through a fragile skylight.

The Business Design Centre allowed workers to cross an unsafe roof, which contained three fragile skylights. The incident occurred on 14 May 2015 when James Murphy, who had been appointed by The Business Design Centre Ltd to undertake repair work, led a contractor over the unsafe roof. The contractor fell through a skylight, falling 5.5m. He suffered serious injuries including a shattered pelvis, broken wrist, and a broken elbow.

The Business Design Centre Limited pleaded guilty to breaching Sections 2(1) and 3(1) of the Health and Safety at Work etc Act 1974.

HSE, 28 September 2016

Key Contacts

Nichola Peters

Nichola Peters

Partner, Global Investigations

View profile