Securities Industry Commentator by Bill Singer Esq

July 6, 2018

Credit Suisse's Investment Bank in Hong Kong Agrees to Pay $47 Million Criminal Penalty for Hiring Scheme That Violated the Foreign Corrupt Practices Act (DOJ Press Release)
Federal prosecutors alleged that between 2007 and 2013, several senior managers of in the Asia Pacific (APAC) region of Credit Suisse (Hong Kong) Limited (Credit Suisse Hong Kong or CSHK), a Hong Kong-based subsidiary of Credit Suisse Group AG (Credit Suisse or CSAG), a Swiss-based issuer of publicly traded securities in the United States engaged in a practice to hire, promote, and retain candidates referred by or related to Chinese government officials and executives of Chinese state-owned entities (SOE).  The employment of these "relationship" or "referral hires" was part of a quid pro quo with the officials who referred the candidates for employment, whereby CSHK bankers sought and obtained business from the referral sources.  Employees of other subsidiaries of CSAG were aware of the referral hires and facilitated the conduct. CSHK entered into a non-prosecution agreement and agreed to pay a criminal penalty of $47,029,916 to resolve the matter. In related proceedings, Credit Suisse Group AG also settled with the U.S. Securities and Exchange Commission (SEC).  Under the terms of its resolution with the SEC, Credit Suisse Group AG agreed to a total of $24,989,843 in disgorgement of profits and $4,833,961 in prejudgment interest.
READ the FULL TEXT Non Prosecution Agreement
An SEC Order alleges that  several senior Credit Suisse Group AG managers in the Asia-Pacific region sought to win business by hiring and promoting individuals connected to government officials as part of a quid pro quo arrangement.  Although the cited practices purportedly bypassed the firm's normal hiring process, employees in other Credit Suisse subsidiaries and affiliates were aware of at times approved these "relationship hires" or "referral hires."  In settling the SEC's allegation, Credit Suisse Group agreed to pay about $30 million. Separately, the firm agreed to pay a $47 million criminal penalty to the United States Department of Justice..

Mentoring Wall Street Professionals About Determination And Persistence ( Blog)
As a mentor, few things are more frustrating than dealing with someone who doesn't return telephone calls, fails to timely reply to emails, and thinks it is professional to communicate with customers and managers via emoticons. There is no persistence. There is no determination. It's all lackadaisical. Nothing frustrates me more than having to send emails, instant messages, and phone calls asking someone I'm trying to help if they contacted a lead that I had arranged for them -- did you call her yet?  As the "Not Yet" or "I'm too busy right now" or "I got your message and I promise to call her first chance" add up, I often see who's going to make it and who still doesn't get it. Time and tide wait for no one. 

SEC Charges Former Executive for Insider Trading (SEC Litigation Release No. 24186)
In a Complaint filed by the SEC in the United States District Court for the Northern District of Texas, the federal regulator alleged that Nelson "Frank" Molina, the former Vice President of Investor Relations and Treasury at ClubCorp, had discovered that ClubCorp was exploring significant transactions involving the company and purchased shares of the company's publicly-traded stock, which yielded a 16% increase and $78,000 profit. After receiving an inquiry from the Financial Industry Regulatory Authority, ClubCorp contacted Molina, who acknowledged his unlawful trading and promptly resigned from the company. Through counsel, Molina reported his misconduct to the SEC staff and provided materials documenting his unlawful trading.In response to the allegations in the SEC Complaint but without admitting or denying the allegations, Molina agreed to the entry of a final judgment permanently enjoining him from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Molina will disgorge his ill-gotten gains and pay a penalty of $39,230. 
READ the FULL TEXT Complaint