U.S. told Deutsche Bank that it may have violated criminal settlement -WSJ -Breaking
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© Reuters. On July 8, 2019, the Deutsche Bank logo is displayed in London. REUTERS/Simon Dawson(Reuters] – U.S. Justice Department tells Deutsche Bank (DE) It may have breached a criminal agreement when it didn’t tell prosecutors about an internally filed complaint related to its asset-management arm’s sustainable investing business.
According to the report, DWS Group (Deutsche Bank’s asset manger) was accused of exaggerating how it uses environmental, governance, and governance criteria to manage its assets.
Deutsche Bank, which had already agreed to pay almost $125 million in January to avoid U.S. criminal prosecution for foreign bribery scheme and manipulation of precious metals markets.
The lender signed a deferred prosecution agreement for three years with the U.S. Department of Justice (DOJ) and a civil settlement with U.S. Securities and Exchange Commission. This allowed it to stay out of court.
The Journal reported that Deutsche Bank could be indicted and prosecuted if authorities conclude they have breached the agreement.
The report states that officials from the United States could ask for an extra fine to be paid to the German bank.
Deutsche Bank and the DOJ declined to comment on this Journal report.
A DOJ official presented policy changes in October that were aimed to root out corporate misconduct. This signaled the DOJ’s willingness to take a more aggressive stance against white collar crime under Democratic President Joe Biden.
Lisa Monaco, deputy attorney general, said among other actions that the agency would examine whether it was appropriate and legal to reach agreements that waive or delay prosecutions for companies who continue to violate the law.
Monaco stated that between 10% and 20% in all corporate significant criminal resolutions are involving repeat offenders. He also said that the Justice Department had not named two companies but that it had informed them that they were breaking such agreements.
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