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JPMorgan Chase & Co. Settles for $264 Million After Allegedly Catering to Asia’s Elite Through Its “Sons & Daughters Program”

JPMorgan Chase & Co. (“JPMorgan”), the largest U.S. bank based on assets, has agreed to pay a $264 million fine to settle Foreign Corrupt Practices Act (“FCPA”) investigations into its preferential hiring program. The program, known internally as the Sons & Daughters Program, was created by investment bankers at its subsidiary, JPMorgan Securities Asia Pacific … Continue Reading

Agricultural Bank of China Agrees to $215 Million Penalty in Anti-Money Laundering Investigation

On November 4, the New York State Department of Financial Services (“DFS”) and the Agricultural Bank of China agreed to a Consent Order requiring the bank to pay a $215 million penalty and to install an independent monitor to review the bank’s program for compliance with anti-money laundering laws (“AML”), including the Bank Secrecy Act … Continue Reading

IPO Fraud Investigation Marks Historic Turn for Chinese Regulatory Enforcement

On October 21, the China Securities Regulatory Commission (“CSRC”) opened an investigation into six Chinese companies for alleged fraud relating to initial public offerings (“IPOs”).  The six companies under investigation are (1) Longbao Ginseng & Antler Co. (“Longbao”), a biotechnology and pharmaceutical company; (2) Guangdong Guangzhou Daily Media Co., an advertising firm; (3) Ingenious Ene-Carbon … Continue Reading

Novartis Settlement Highlights FCPA Risks for Companies in China

On March 23, 2016, Novartis AG settled with the United States Securities and Exchange Commission (“SEC”) for $25 million, resolving allegations that Novartis subsidiaries in the People’s Republic of China violated the U.S. Foreign Corrupt Practices Act (“FCPA”) when subsidiary employees allegedly bribed Chinese doctors.  The SEC alleged that from 2009 to 2013, Novartis employees … Continue Reading

PRC Shadow Banking Industry’s Multi-Billion Dollar Fraud

On February 1, Chinese state media reported that Ezhubao, an internet-based financial services platform, defrauded nearly one million investors out of more than $7.6 billion in 18 months of operation. This appears to be the largest fraud ever reported in China. China’s Ministry of Public Security has already established a registration system for investors to … Continue Reading

China Cracks Down on Insider Trading in Effort to Calm Volatile Markets

Earlier this month, Chinese law enforcement officials arrested the manager of prominent hedge fund Zexi Investment, as well as executives of trading company Yishidun, for alleged futures trading schemes. First reported by state news service Xinhua, these arrests are part of the Chinese government’s escalating efforts to rein in abuses in the nation’s securities industry … Continue Reading
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