Money laundering

The 2024 Corporate Rap Sheet

My colleagues and I collected more than 22,000 new entries for the U.S. version of Violation Tracker this year. We also launched Violation Tracker Global, which contains cases brought against large corporations in 52 countries. Here are some of the most notable cases of the year from both databases.

McKinsey and Opioids. McKinsey, the leading management consulting firm, had to pay $650 million in criminal and civil penalties to resolve a U.S. Justice Department (DOJ) case concerning its work for the disgraced pharmaceutical company Purdue Pharma. McKinsey was charged with conspiring with Purdue to “turbocharge” sales of OxyContin while misleading users about the addiction risks of the opioid.

TD Bank and Money Laundering. TD Bank N.A., a U.S. subsidiary of Canada’s Toronto-Dominion, pleaded guilty and agreed to pay $1.9 billion in fines and forfeiture to resolve DOJ charges that it violated the Bank Secrecy Act by failing to file reports on suspicious transactions and thereby facilitated money laundering by criminal networks.

BHP, Vale and a Mining Disaster. Mining giants BHP and Vale, co-owners of the Samarco joint venture, agreed to a US$31 billion settlement to resolve litigation brought by Brazilian communities destroyed by the 2015 Mariana mine-waste dam collapse that killed 19 people and polluted 400 miles of rivers.

Raytheon and Fraud and Bribery. Raytheon Company, a subsidiary of military contractor RTX (formerly known as Raytheon Technologies), agreed to pay over $950 million to resolve a DOJ criminal investigation into a major fraud scheme involving defective pricing on certain government contracts and violations of the Foreign Corrupt Practices Act and the Arms Export Control Act.

3M and PFAS. A federal judge in South Carolina gave final approval to a class action settlement in which 3M agreed to pay an estimated $12.5 billion to more than 10,000 public water systems to resolve allegations that PFAS chemicals produced by the company for use in firefighting foam ended up contaminating water sources.

Apple and Improper Tax Breaks. The European Commission ordered Apple to repay 13 billion euros to Ireland after determining that the special tax breaks the company had been receiving for 16 years amounted to a form of illegitimate state aid.

Meta Platforms and Biometric Data. Facebook parent Meta Platforms agreed to pay $1.4 billion to the Texas Attorney General’s office to settle a lawsuit alleging it improperly captured biometric data from millions of users for its facial recognition system without the authorization required by state law.

Teva Pharmaceuticals and Copaxone. The European Commission fined Teva 462 million euros for abusing its dominant position to delay competition to Copaxone, its medication for the treatment of multiple sclerosis. The Commission found that Teva artificially extended the patent protection of Copaxone and systematically spread misleading information about a competing product to hinder its market entry and uptake.

Uber Technologies and Wage Theft. Uber paid $148 million to settle a case brought by the Massachusetts Attorney General alleging that it violated state wage and hour law in the way it paid its drivers. The agreement also required the company to begin paying a minimum wage of $32.50 an hour and providing benefits such as paid sick leave. The case also targeted Lyft, which paid $27 million.

Glencore and Bribery. The Office of the Attorney General of Switzerland ordered commodities trading company Glencore to pay a penalty equal to about $152 million for failing to take steps to prevent the bribery of government officials in the Democratic Republic of Congo by a business partner.

Walgreens and False Claims. Walgreens Boots Alliance Inc. and Walgreen Co. agreed to pay $106 million to the DOJ to resolve alleged violations of the False Claims Act and state statutes for billing government health care programs for prescriptions never dispensed.

Veolia and a Workplace Death. A British subsidiary of France’s Veolia Group pleaded guilty to breaching the Health and Safety at Work Act after a worker died and another was seriously injured while decommissioning a North Sea gas rig. The Health and Safety Executive fined the company £3 million and ordered it to pay £60,000 in costs.

Goldman Sachs and Apple Card Users. The U.S. Consumer Financial Protection Bureau ordered Goldman Sachs to pay $64 million in fines and redress for mishandling customer service breakdowns affecting thousands of Apple Card holders. These failures meant that consumers faced long waits to get money back for disputed charges and some had incorrect negative information added to their credit reports.

You can find many more examples of the year’s corporate scandals in Violation Tracker and Violation Tracker Global. There is every reason to believe there will be many more cases for the Trackers to document in the coming year.

Big Banks and Dirty Money

Toronto-Dominion has joined the dubious club of large companies that have paid a penalty of $1 billion or more in a single case of misconduct. It achieved that distinction with the recent slew of announcements by the U.S. Justice Department and several financial regulators that the book was being thrown at the Canadian bank’s U.S. subsidiary TD Bank for widespread failures in meeting its obligations to prevent the use of its operations for money laundering by criminals and tax evaders.

TD Bank was hit with $1.9 billion in criminal fines by the DOJ and more than a billion from the Federal Reserve, the Office of the Comptroller of the Currency, and the Treasury Department’s Financial Crimes Enforcement Network. It all came to $3.09 billion in penalties. Adding these to Toronto-Dominion’s previous cases documented in Violation Tracker raises the bank’s aggregate penalties in the U.S. to nearly $4 billion, far and away the highest total for any parent company headquartered in Canada.

Looking specifically at penalties for anti-money-laundering (AML) deficiencies, Toronto-Dominion is now at the top of the list in that category, overtaking Denmark’s Danske Bank, which has hit with $2 billion in criminal fines by the DOJ in 2022.

Other banks with the highest penalties for AML and related Bank Secrecy Act violations include: JPMorgan Chase ($811 million), HSBC ($665 million), U.S. Bancorp ($528 million), Deutsche Bank ($491 million), and Capital One ($390 million). The non-bank with the largest total is Western Union at $740 million.

AML violations are not limited to the United States. In the new Violation Tracker Global, which covers cases against large corporations in 45 countries (including the U.S.), AML is one of the most frequent offenses, with total penalties equal to more than $20 billion imposed by regulators and courts in three dozen countries.

The U.S. by far contributes the most ($15 billion) to that total. Other countries with the most AML penalties against large corporations include Australia, the Netherlands, and the United Kingdom, each with between $1 billion and $2 billion. Next are Denmark and Sweden with totals between $500 million and $700 million.

Outside the United States, the largest individual AML cases include: a $916 million penalty in Australia against Westpac Banking Corporation; a $900 million penalty in the Netherlands against ING Bank; a $675 million penalty in Denmark against Danske Bank; a $575 million penalty in the Netherlands against ABN AMRO; a $529 million penalty in Australia against Commonwealth Bank; a $397 million penalty in Sweden against Swedbank; and a $350 million penalty against NatWest in the United Kingdom.

Toronto-Dominion had one AML penalty outside the U.S.—a penalty equal to less than $7 million in its home country of Canada.

These figures suggest that large banks everywhere have a problem complying with AML restrictions. That is probably because doing business with clients flush with dubious cash is simply too lucrative for them to resist. Large penalties imposed in the U.S. and a few other countries may have some deterrent effect, but regulators and prosecutors need to find more effective forms of punishment.

Note: The new TD Bank cases will be added to Violation Tracker and Violation Tracker Global as part of updates that are being prepared.

Handling Crime in the Suites

Figuring out how to get corporate executives to obey the law has been a perennial challenge. The Justice Department has apparently concluded that the key to compliance may be to threaten something CEOs and other C-Suite bigwigs love dearly: their annual bonuses.

As Law360 reports, compliance experts are abuzz about an unusual provision the DOJ included in the plea agreement it recently negotiated with Denmark’s Danske Bank. The company had agreed to forfeit $2 billion and plead guilty to fraud in connection with allegations that its lax anti-money-laundering (AML) controls allowed shady customers from Russia and other eastern European countries to funnel suspicious funds through Danske’s subsidiary in Estonia.

What is remarkable in the plea agreement is a requirement that Danske tie its executive bonuses to compliance with the stricter AML procedures the bank agreed to implement. The agreement states:

“The Bank will implement evaluation criteria related to compliance in its executive review and bonus system so that each Bank executive is evaluated on what the executive has done to ensure that the executive’s business or department is in compliance with the Compliance Programs and applicable laws and regulations. A failing score in compliance will make the executive ineligible for any bonus for that year.”

The bank is also supposed to structure its compensation system to “incentivize future compliant behavior and discipline executives for conduct occurring after the filing of the Agreement that is later determined to have contributed to future compliance failures.”

Tying executive compensation to compliance is not entirely new. For example, last year the SEC adopted a rule requiring executives at publicly traded companies to return bonuses in the event of erroneous financial reporting. The use of such clawbacks was raised in the 2010 Dodd-Frank Act and took a dozen years to come into existence.

I am of two minds about this innovation. On the one hand, it is encouraging that DOJ is experimenting with new ways to punish corrupt behavior in the corporate world. Imposing consequences on individual executives is an improvement over the usual practice of simply having the company pay a monetary penalty to make the case go away.

On the other hand, it is a bit dismaying that the punishment being contemplated for those executives is quite so mild. Taking a hit to a bonus worth six or seven figures may be unpleasant to a corporate executive, but it is far from a multi-year prison sentence.

The focus on financial incentives and disincentives for individual business offenders is consistent with the approach DOJ tends to take when cases are brought against companies. As I wrote about recently, the Department is offering corporations new inducements – in the form of reduced monetary penalties — to get them to voluntarily disclose misconduct. This is addition to continuing the practice of allowing companies to enter into leniency agreements known as deferred prosecution and non-prosecution agreements so they do not have to plead guilty to criminal charges.

Time and again, we see corporate miscreants treated with kid gloves. The repeated calls for getting tough on crime never seem to apply when the offenses occur in the suites rather than the streets.

Corruption Galore

For those convinced of the depravity of large corporations and the super-wealthy, recent days have provided an abundance of vindication. Thanks to the whistleblower at Facebook and an anonymous leaker of a vast collection of confidential financial documents dubbed the Pandora Papers, we have amazing new evidence of corruption and anti-social behavior.

Frances Haugen’s release of internal research paints a picture of Facebook as prioritizing profits ahead of taking steps to address evidence that its algorithms promote social animosity and that its products such as Instagram exacerbate mental health problems among teenage users.

The financial documents revealed in the Pandora Papers depict numerous billionaires and government leaders around the world as brazen tax cheats who are accumulating immense amounts of illegal assets in the form of high-end real estate, yachts and secret bank accounts.

Of course, none of this comes as a surprise. In fact, this is not the first large-scale leak of private financial records showing misappropriation, money laundering and tax evasion among the global elite. We already knew that Facebook is basically unconcerned about the damage caused by its services.

As is always the case after major revelations like these, the main question is whether policymakers will do anything to address the problems. The odds that the Pandora Papers will prompt Congress to act are reduced somewhat by the fact that the disclosures do not include much about members of the U.S. elite. Major controversies have erupted in countries such as Jordan, Kenya and the Czech Republic, whose leaders are among those implicated in the documents. U.S. individuals consist mainly of lesser-known billionaires and art dealers.

Perhaps the most salient U.S. angle in the Pandora Papers is the increasingly important role played by states such as South Dakota as tax havens for elites seeking to shield illicit assets. To some extent this is an issue for state legislatures, though a bill has been introduced in Congress that would require trust companies and others to screen foreign clients seeking to move assets through the U.S. financial system.

There may be more policy momentum when it comes to Facebook. It and the other tech giants have been receiving criticism, for varying reasons, from members of Congress across the political spectrum. Along with the issues raised by the whistleblower, there are increasing concerns about the concentration of ownership within the tech sector. Among other things, Facebook is the subject of a new antitrust complaint by the Federal Trade Commission.

An article in the Washington Post quotes lawmakers suggesting that this may be tech’s “Big Tobacco moment,” a reference to the time in the late 1990s when the major cigarette manufacturers lost their stranglehold over public policy and ended up having to accept stronger federal regulation and paying out tens of billions of dollars in class action settlements.

It is good to hear that legislators are thinking in those terms, but they will have to turn up the heat much higher on Facebook, which so far is not admitting any culpability and whose CEO is too young to remember much about the 1990s.

Money Laundering and Corporate America

Money laundering has jumped back to the top of the corporate crime charts, thanks to Steve Bannon’s statements about Trump’s associates as well as the revelation by the founders of Fusion GPS that they gave Congressional investigators leads about the president’s questionable business transactions.

Amid all this, the Office of the Comptroller of the Currency reminded us of the wider scope of corporate ties to money laundering by announcing that it was fining Citibank $70 million for failing to comply with a 2012 consent order the bank signed with the agency to resolve allegations of violating the Bank Secrecy Act. Western Union is paying a $60 million penalty in a similar case brought by New York regulators.

According to data compiled for Violation Tracker, the Justice Department and federal financial regulators have since 2000 brought more than 80 successful cases against corporations for deficiencies in their anti-money laundering practices. These companies have paid a total of $5.9 billion in fines and settlements.

The targets of these cases include several of the largest U.S. banks. JPMorgan Chase paid the largest penalty, $1.7 billion, to resolve a criminal case connected to its role as the banker for Ponzi schemer Bernard Madoff. Wachovia, now owned by Wells Fargo, was fined $110 million in 2010. Citigroup subsidiary Banamex agreed last year to forfeit $97 million to resolve a criminal case involving remittances to Mexico.

Foreign banks have also been involved. In 2012 HSBC had to pay $1.3 billion to resolve charges relating to anti-money laundering deficiencies as well as violations of economic sanctions. Last year Deutsche Bank – the same institution whose name keeps getting mentioned in connection with the Trump investigation – was penalized $41 million by the Federal Reserve and was fined $425 million by New York State regulators for anti-money laundering deficiencies said to be connected to the illicit transfer of more than $10 billion out of Russia.

Federal prosecutors and regulators have also brought cases against non-bank entities that handle lots of cash, including Western Union, American Express and casinos. In 2015 the Tinian Dynasty Hotel & Casino was fined $75 million, and in 2013 the Las Vegas Sands Corp. paid $47 million to resolve criminal charges.

Also in 2015 the Treasury Department imposed a $10 million penalty on the Trump Taj Mahal Casino Resort, which by that time was no longer controlled by Donald Trump. Yet the justification for that penalty mentioned that the casino had been found in violation of the Bank Secrecy Act many times in earlier years, including 1998, when, with Trump running the show, it was fined $477,000 by Treasury.

All of which is to say that neither Donald Trump, his current and former business interests, nor many of the largest financial institutions are strangers to issues of anti-money laundering deficiencies. For the most part, these cases involve a failure to detect and report suspicious transactions on the part of clients and customers. The big question for the Trump empire is whether it will faces charges of having engaged in such transactions on its own.

Trump’s Commerce Nominee Also Has Suspicious Russian Ties

While the spotlight is on Michael Flynn’s discussions with Russia about sanctions, little attention is being paid to the Russian connections of Trump’s Commerce Secretary nominee Wilbur Ross, who if confirmed would oversee an agency involved with enforcing those sanctions.

The 79-year-old Ross, who was an advisor to Trump’s presidential campaign, is best known as a vulture capitalist who made a fortune restructuring troubled steel, coal and textile companies and then selling them off. Yet he continues to have associations with a wide range of companies. Among those is the Bank of Cyprus, where Ross has served as vice chairman of the board of directors since leading a financial rescue of the institution in 2014.

According to reporting in late 2016 by McClatchy and Mother Jones, the Cypriot bank has close ties to wealthy Russian businessmen linked to Vladimir Putin. One of those is Viktor Vekselberg, whose Renova Group became the second largest shareholder in the bank. One of Renova’s executives, Maksim Goldman, was named to the bank’s board of directors and is now a vice chairman alongside Ross.

McClatchy also pointed out that the Bank of Cyprus was mentioned thousands of times in the Panama Papers in connection with the offshore activities of Putin’s cronies. And then there’s the fact that the chair of the bank Ross helped to install is Josef Ackermann, the retired chief executive of Deutsche Bank, which last month agreed to pay $425 million to resolve allegations by the New York State Department of Financial Services that it helped Russian clients engage in what amounted to money laundering through an international mirror-trading scheme.

What makes all of this more significant is that among the agencies Ross would oversee as Commerce Secretary is the Bureau of Industry and Security (BIS), which along with the Treasury Department’s Office of Foreign Assets Control, administers the sanctions against Russia imposed by the Obama Administration and which, for the moment, are still in effect.

The BIS portion of those sanctions includes restrictions on the ability of U.S. companies to export certain military and energy products to Russian parties whose names are on what is known as the Entity List. The latest Russian additions to the list were made in the final weeks of the Obama Administration in the wake of new sanctions imposed in response to Russian interference in the U.S. presidential election.

In his confirmation hearing last month, Ross was not interrogated about his views on Russian sanctions or how he might adjust the role of BIS. And Ross has defused much of the opposition to his nomination by vowing to divest from most (though not all) of his holdings.

Yet in light of the ongoing controversy over the Russian links of other figures in Trump’s campaign and his administration, Ross’s ties to the Putin network deserve a lot more scrutiny (as do his China connections).

Note: The Bureau of Industry and Security and the Office of Foreign Assets Control, along with the State Department’s Directorate of Defense Trade Controls, are among the agencies whose cases will be included in an update of Violation Tracker that will be posted next week.

Jack Lew’s Citigroup Baggage

For the past four years, the presence of Timothy Geithner as Secretary of the Treasury has been a blight on the Obama Administration.

In keeping with his weak performance as president of the Federal Reserve Bank of New York, Geithner has allowed Wall Street culprits to enjoy lavish assistance from taxpayers as they avoid any serious consequences for having brought on the financial crisis from which the country is still trying to recover.

Now that Geithner is departing, Obama had a chance to take Treasury in a new direction. His choice of White House chief of staff Jack Lew for the post is not a good sign. As a deficit hawk, Lew will reinforce the president’s regrettable inclination to take seriously the wrong-headed notion that the country has a spending problem.

Yet perhaps even more troubling is Lew’s background, particularly the fact that he is a veteran of one of the leading financial-sector miscreants: Citigroup. Unfortunately, it is not unusual for presidents to turn to Wall Street for their Treasury secretaries. Ronald Reagan brought in Don Regan from Merrill Lynch; Bill Clinton got Robert Rubin from Goldman Sachs; and George W. Bush turned to Goldman again when he chose Hank Paulson to be his third Treasury head. The difference is that Lew is the first Wall Street veteran to be chosen for Treasury since the financial meltdown of 2008 exposed the pernicious behavior of the giant banks.

While Lew is not a Wall Street lifer and is not coming straight from the private sector, his time at the bank (2006-2009) was not long ago. Moreover, he was personally involved in some of Citi’s dubious practices. In 2010 the Huffington Post reported that when Lew served as chief financial officer of Citi’s Alternative Investments operation his portfolio included investments put together by hedge fund manager John Paulson that made a killing by correctly betting that the housing market would tank. This was the same Paulson who helped Goldman Sachs put together a similar notorious deal that led to SEC charges and a $550 million settlement.

Actually, Lew’s dealings with Paulson are just the beginning of why it wrong for Obama to be selecting a veteran of Citigroup to such an important position in his administration. It is well known that Citi was bailed out by the federal government to the tune of $45 billion while also getting loss protection for some $300 billion in toxic assets. What some may have forgotten is the absolutely abysmal track record of Citi before and after the bailout, including the following:

It was the merger of Citibank and Travelers Group—technically illegal when it was announced in 1998—that played a key role in bringing about the disastrous policy of financial deregulation.

Citi gave a boost to predatory lending and subprime mortgages when it purchased Associates First Capital. In 2001 Citi had to pay $215 million to settle charges brought by the Federal Trade Commission in connection with Associates’ abusive practices.

In the wake of revelations that it helped Enron conceal its massive accounting fraud, Citi had to pay $2 billion to settle lawsuits brought by Enron investors. It later paid another $2.65 billion to settle lawsuits brought by investors in WorldCom, another perpetrator of accounting fraud, alleging that Citi failed to perform due diligence when underwriting the company’s bonds.

In 2010 the SEC announced that Citi would pay a $75 million penalty to settle allegations that it misled investors about its exposure to subprime mortgage-related assets. The following year, Citi paid $285 million to the SEC to settle charges that it defrauded investors in a $1 billion collateralized debt obligation tied to the U.S. housing market.

The settlement amount in the latter SEC case, which was far below the $700 million in losses suffered by the defrauded investors, was roundly criticized by the federal judge, Jed Rakoff, who was overseeing the case. Judge Rakoff also challenged the SEC’s willingness to let Citi get off without admitting guilt in the matter, calling the deal “neither reasonable, nor fair, nor adequate, nor in the public interest.” He rejected the settlement, but the SEC filed an appeal, which is not yet fully resolved.

Citi was one of five large mortgage servicers that in February 2012 consented to a $25 billion settlement with the federal government and state attorneys general to resolve allegations of loan servicing and foreclosure abuses. That same month, U.S. attorney’s office in Manhattan announced that Citi would pay $158 million to settle charges that its mortgage unit fraudulently misled the federal government into insuring thousands of risky home loans. In August 2012 Citi agreed to pay $590 million to settle lawsuits charging that it deceived investors by concealing the extent of its exposure to toxic subprime debt. And just this month, Citi was one of ten major lenders that agreed to pay a total of $8.5 billion to resolve claims of foreclosure abuses.

Lew, of course, was not personally responsible for all these offenses, but his association with this rogue bank is strong enough to disqualify him from a top economic policy position.

Note: This history draws from my new Corporate Rap Sheet on Citigroup, which was just posted here.

The 2012 Corporate Rap Sheet

Corporate crime has been with us for a long time, but 2012 may be remembered as the year in which billion-dollar fines and settlements related to those offenses started to become commonplace. Over the past 12 months, more than half a dozen companies have had to accede to ten-figure penalties (along with plenty of nine-figure cases) to resolve allegations ranging from money laundering and interest-rate manipulation to environmental crimes and illegal marketing of prescription drugs.

The still-unresolved question is whether even these heftier penalties are punitive enough, given that corporate misconduct shows no sign of abating. To help in the consideration of that issue, here is an overview of the year’s corporate misconduct.

BRIBERY. The most notorious corporate bribery scandal of the year involves Wal-Mart, which apart from its unabashed union-busting has tried to cultivate a squeaky clean image. A major investigation by the New York Times in April showed that top executives at the giant retailer thwarted and ultimately shelved an internal probe of extensive bribes paid by lower-level company officials as part of an effort to increase Wal-Mart’s market share in Mexico. A recent follow-up report by the Times provides amazing new details.

Wal-Mart is not alone in its behavior. This year, drug giant Pfizer had to pay $60 million to resolve federal charges related to bribing of doctors, hospital administrators and government regulators in Europe and Asia. Tyco International paid $27 million to resolve bribery charges against several of its subsidiaries. Avon Products is reported to be in discussions with the U.S. Justice Department and the Securities and Exchange Commission to resolve a bribery probe.

MONEY LAUNDERING AND ECONOMIC SANCTIONS. In June the U.S. Justice Department announced that Dutch bank ING would pay $619 million to resolve allegations that it had violated U.S. economic sanctions against countries such as Iran and Cuba. The following month, a U.S. Senate report charged that banking giant HSBC had for years looked the other way as its far-flung operations were being used for money laundering by drug traffickers and potential terrorist financiers. In August, the British bank Standard Chartered agreed to pay $340 million to settle New York State charges that it laundered hundreds of billions of dollars in tainted money for Iran and lied to regulators about its actions; this month it agreed to pay another $327 million to settle related federal charges. Recently, HSBC reached a $1.9 billion money-laundering settlement with federal authorities.

INTEREST-RATE MANIPULATION. This was the year in which it became clear that giant banks have routinely manipulated the key LIBOR interest rate index to their advantage. In June, Barclays agreed to pay about $450 million to settle charges brought over this issue by U.S. and UK regulators. UBS just agreed to pay $1.5 billion to U.S., UK and Swiss authorities and have one of its subsidiaries plead guilty to a criminal fraud charge in connection with LIBOR manipulation.

DISCRIMINATORY LENDING. In July, it was announced that Wells Fargo would pay $175 million to settle allegations that the bank discriminated against black and Latino borrowers in making home mortgage loans.

DECEIVING INVESTORS. In August, Citigroup agreed to pay $590 million to settle a class-action lawsuit alleging that it failed to disclose its full exposure to toxic subprime mortgage debt in the run-up to the 2008 financial crisis. The following month, Bank of America said it would pay $2.4 billion to settle an investor class-action suit charging that it made false and misleading statements during its acquisition of Merrill Lynch during the crisis. In November, JPMorgan Chase and Credit Suisse agreed to pay a total of $417 million to settle SEC charges of deception in the sale of mortgage securities to investors.

DEBT-COLLECTION ABUSES. In October, American Express agreed to pay $112 million to settle charges of abusive debt-collection practices, improper late fees and deceptive marketing of its credit cards.

DEFRAUDING GOVERNMENT. In March, the Justice Department announced that Lockheed Martin would pay $15.9 million to settle allegations that it overcharged the federal government for tools used in military aircraft programs. In October, Bank of America was charged by federal prosecutors with defrauding government-backed mortgage agencies by cranking out faulty loans in the period leading to the financial crisis.

PRICE-FIXING. European antitrust regulators recently imposed the equivalent of nearly $2 billion in fines on electronics companies such as Panasonic, LG, Samsung and Philips for conspiring to fix the prices of television and computer displays. Earlier in the year, the Taiwanese company AU Optronics was fined $500 million by a U.S. court for similar behavior.

ENVIRONMENTAL CRIMES. This year saw a legal milestone in the prosecution of BP for its role in the 2010 Deepwater Horizon drilling accident that killed 11 workers and spilled a vast quantity of crude oil into the Gulf of Mexico. The company pleaded guilty to 14 criminal charges and was hit with $4.5 billion in criminal fines and other penalties. BP was also temporarily barred from getting new federal contracts.

ILLEGAL MARKETING. In July the U.S. Justice Department announced that British pharmaceutical giant GlaxoSmithKline would pay a total of $3 billion to settle criminal and civil charges such as the allegation that it illegally marketed its antidepressants Paxil and Wellbutrin for unapproved and possibly unsafe purposes. The marketing included kickbacks to doctors and other health professionals. The settlement also covered charges relating to the failure to report safety data and overcharging federal healthcare programs. In May, Abbott Laboratories agreed to pay $1.6 billion to settle illegal marketing charges.

COVERING UP SAFETY PROBLEMS. In April, Johnson & Johnson was ordered by a federal judge to pay $1.2 billion after a jury found that the company had concealed safety problems associated with its anti-psychotic drug Risperdal. Toyota was recently fined $17 million by the U.S. Transportation Department for failing to notify regulators about a spate of cases in which floor mats in Lexus SUVs were sliding out of position and interfering with gas pedals.

EXAGGERATING FUEL EFFICIENCY. In November, the U.S. Environmental Protection Agency announced that Hyundai and Kia had overstated the fuel economy ratings of many of the vehicles they had sold over the past two years.

UNSANITARY PRODUCTION. An outbreak of meningitis earlier this year was tied to tainted steroid syringes produced by specialty pharmacies New England Compounding Center and Ameridose that had a history of operating in an unsanitary manner.

FATAL WORKFORCE ACCIDENTS. The Bangladeshi garment factory where a November fire killed more than 100 workers (who had been locked in by their bosses) turned out to be a supplier for Western companies such as Wal-Mart, which is notorious for squeezing contractors to such an extent that they have no choice but to make impossible demands on their employees and force them to work under dangerous conditions.

UNFAIR LABOR PRACTICES. Wal-Mart also creates harsh conditions for its domestic workforce. When a new campaign called OUR Walmart announced plans for peaceful job actions on the big shopping day after Thanksgiving, the company ignored the issues they were raising and tried to get the National Labor Relations Board to block the protests. Other companies that employed anti-union tactics such as lockouts and excessive concessionary demands during the year included Lockheed Martin and Caterpillar.

TAX DODGING. While it is often not technically criminal, tax dodging by large companies frequently bends the law almost beyond recognition. For example, in April an exposé in the New York Times showed how Apple avoids billions of dollars in tax liabilities through elaborate accounting gimmicks such as the “Double Irish with a Dutch Sandwich,” which involves artificially routing profits through various tax haven countries.

FORCED LABOR. In November, global retailer IKEA was revealed to have made use of prison labor in East Germany in the 1980s.

Note: For fuller dossiers on a number of the companies listed here, see my Corporate Rap Sheets. The latest additions to the rap sheet inventory are drug giants AstraZeneca and Eli Lilly.

Regulators Draw Flak Meant for Corporate Perps

When a mobster or street criminal declares “I was framed” and expresses disdain for police and prosecutors, we dismiss it as part of their sociopathic tendencies. Yet when corporate transgressors do essentially the same thing by criticizing government regulators, they are taken much more seriously. All too often, business perps succeed in portraying themselves as the victims.

This charade is being played out yet again amid the current wave of scandals involving major U.S. and British banks. In the latest case, Britain’s Standard Chartered has been accused by New York State banking regulator Benjamin Lawsky of scheming with the Iranian government to launder billions of dollars in funds that might have been used to support terrorist activists.

Rather than being outraged by the fact a major financial institution may very well have provided substantial material support to a regime that the governments of the United States and other western countries spend so much time vilifying, most of the criticism seems to be aimed at Lawsky.

Some of this criticism, not surprisingly, is coming from Standard Chartered itself, which insists that 99.9 percent of its dealings with Iranian parties were legitimate and that it was already cooperating with other regulatory agencies in investigating the matter. Those other agencies, including the Federal Reserve and the Office of Foreign Assets Control, seem to be siding with Standard Chartered. An article in the New York Times served as a conduit for allegations by unnamed federal officials seeking that Lawsky’s case was seriously flawed.

The accusations against Standard Chartered are hardly unprecedented. Only two months ago, the Justice Department announced that the Netherlands-based ING Bank had agreed to pay $619 million to settle charges of having violated federal law by systematically concealing prohibited transactions with Iran and Cuba. Last month, the Senate Permanent Subcommittee on Investigations issued a report of more than 300 pages on the poor record of the British bank HSBC in avoiding money-laundering transactions linked to terrorism and drug dealing.

The unfriendly response to the Lawsky allegations is not just a matter of the usual tension between federal and New York State regulators when it comes to financial sector investigations. Disapproving comments have also come from officials in Britain, with one member of parliament making the ridiculous suggestion that anti-British bias was involved.

There’s something much larger at stake. We’re in the midst of an ongoing corporate crime wave, with major banks among the most prominent perpetrators. As the Times points out, large corporations are on track to pay as much as $8 billion this year to resolve allegations of defrauding the federal government, a record amount and more than twice the amount from last year.

We should be focusing our criticisms on the companies involved in these and other cases that have not yet reached the settlement stage—not the regulators and prosecutors trying to control the corporate misconduct.

If there is any criticism to be made of regulators, it is that too few of them resemble Lawsky. They are more likely to treat corporations with kid gloves, given that too many of them either come from the private sector or end up there after their stint in government. Or else they simply fail to take decisive action. In the other major financial scandal of the day—the manipulation of the LIBOR interest rate index by Barclays and other major banks—regulators such as the Federal Reserve Bank of New York knew of the abuses years ago and were slow to do anything. The inaction was brazenly used by former Barclays CEO Bob Diamond as a way of spreading the blame for the rate-rigging.

No discussion of regulation would be complete without mentioning the problem that many of the rules are too weak to begin with. The individual most responsible for this during the Obama Administration—Cass Sunstein—recently announced that he will be leaving the Office of Information and Regulatory Affairs to return to academia. An indication of the damage inflicted by Sunstein can be gauged by the fact that both the Business Roundtable and the U.S. Chamber of Commerce bemoaned his departure. Hopefully, Sunstein’s successor will make it harder for corporate malefactors to ply their trade.