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SEC: Deutsche Bank Hired Relatives of Russian, Chinese Officials in Return for Business

SEC: Deutsche Bank Hired Relatives of Russian, Chinese Officials in Return for Business
A man walks from the Deutsche Bank entrance on Hunter St on July 09, 2019 in Sydney, Australia. ( Don Arnold/Getty Images)

By    |   Monday, 26 August 2019 08:59 PM

Deutsche Bank hired relatives of Russian and Chinese government officials in order to steer business to the bank, the Securities and Exchange Commission alleged in an order filed last week.

Deutsche agreed to pay more than $16 million to settle charges it violated U.S. corruption laws by doing so, though it did not admit or deny the findings.

The SEC in its order outlines several alleged violations of the 1977 Foreign Corrupt Practices Act committed by Deutsche Bank between 2009 and 2012.

“Deutsche Bank, directly or indirectly, hired numerous Referral Hires at the request of government officials in China and Russia including circumstances in which there was evidence connecting the hire to specific business,” the SEC wrote. “Deutsche Bank was unjustly enriched by approximately $10,785,900 from those transactions occurring within the statute of limitations.”

The SEC also found that Deutsche employees created false books and records that concealed corrupt hiring practices and failed to accurately document and record certain related expenses, violating internal accounting rules.

In one case, the SEC said Deutsche Bank hired the daughter of an unnamed “deputy minister” at a Russian government entity.

“We must do it! We should have her in London as it is NOT politically correct to have her in Moscow!” the SEC quoted the bank’s Russia chief in an email to his supervisors in 2009. Deutsche hired the daughter as a temporary employee in Moscow, but only when she was brought on as a permanent employee and transferred to London did Deutsche Bank receive a request for proposal signed by her father for a “2 billion euro Eurobond insurance.”

Information from Reuters was used in this report.

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Deutsche Bank hired relatives of Russian and Chinese government officials in order to steer business to the bank, the Securities and Exchange Commission alleged in an order filed last week....
deutsche, bank, sec, russia, china
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2019-59-26
Monday, 26 August 2019 08:59 PM
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