Legal News

PriceWaterhouseCoopers to Pay $25 Million Following Investigation
Download PDF

pwc-1

Summary: PriceWaterhouseCoopers will pay a $25 million fine and go on a two-year suspension following an investigation by the New York Department of Financial Services into an altered report.

In an agreement with New York regulators, PriceWaterhouseCoopers will be suspended for two years from consulting for new bank clients and pay $25 million, according to The Associated Press. The agreement stems from an investigation into the company that found it altered a report regarding the Bank of Tokyo Mitsubishi and its role in money laundering.

  
What
Where


This agreement, announced on Monday, follows a $250 million settlement reached between the bank and regulators in New York just last year.

The investigation was conducted by New York’s Department of Financial Services and it found that the bank altered its report sent to regulators on wire transfers on the behalf of Iran, Sudan and other countries that were under United States sanctions. The bank altered the report when under pressure from its executives.

Ben Lawsky, the department superintendent, said, “We are continuing to find examples of improper influence and misconduct in the bank consulting industry. When bank executives pressure a consultant to whitewash a supposedly ‘objective’ report to regulators — and the consultant goes along with it — that can strike at the very heart of our system of prudential oversight.”

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




The U.S. advisory leader for the bank, Miles Everson, said that the agreement is for a single engagement that occurred six years ago. The bank searched for and identified transactions that were reported by the bank to regulators. He said the report disclosed the facts that it discovered.

The payment of $25 million is for the approximation of fees and the expenses the company was paid for the report it issued to go along with the investigation cost of the company.



The investigation also discovered that the bank withheld more than 20 percent of a director’s compensation after the director suggested the bank stop conducting further analysis that showed wrongdoing by the bank.

 

Most Popular

Legal Career Resources

December 2, 2016 How to Pass the Next Bar Exam

Summary: If you didn’t pass the bar exam in July, what can you do differently for February’s test? If you didn’t pass the bar exam in July, don’t worry! You always have a second chance in February, and besides, lots of people […]

read more

SEARCH IN ARCHIVE

To Top