FINANCIAL MISCONDUCT
Who is Rishi Shah: The man who defrauded Goldman Sachs, Google of $1 billion
Rishi Shah, co-founder of Outcome Health, has been sentenced to seven and a half years in prison for orchestrating a $1 billion fraud scheme involving his healthcare advertising startup. The case has impacted major investors and drawn attention to corporate accountability.
Kinara Capital's resilient model gives it 51% profit rise despite distress in fintech sector
The fintech company has been profitable even when the customer segment was disproportionately impacted, says Hardika Shah, Founder & CEO of Kinara Capital. She says this has happened on the back of a balanced business model and strategic planning.
FIU imposes over Rs 1.66 crore fine on Axis Bank for failing to detect fraud NSG account
The Financial Intelligence Unit has fined Axis Bank over Rs 1.66 crore for failure to detect and report suspicious transactions involving a fraudulent account created in the name of the NSG counter-terrorist force. The agency's order under the PMLA found Axis Bank employees complicit in a large-scale fraud. The bank was directed to review its monitoring mechanisms, improve data-sharing practices, and implement stringent employee screening and training programs.
FIU imposes over Rs 1.66 cr fine on Axis Bank for failing to detect fraud NSG account
The Financial Intelligence Unit (FIU) has fined Axis Bank over Rs 1.66 crore for failing to detect and report suspicious transactions involving a fraudulent account in the name of the National Security Guard (NSG). This action, under the Prevention of Money Laundering Act (PMLA), highlighted that an Axis Bank employee was complicit in creating the fraudulent account for illicit funds. The FIU criticized the bank for not having adequate mechanisms to identify and report such activities.
Audit panels of companies can’t escape blame by citing auditors’ failure: NFRA chief
NFRA chairman Ajay Bhushan Pandey emphasized the audit committee's responsibility in ensuring accurate financial statements, even if auditors fail in their duty. He highlighted the need for meaningful communication between audit committees and auditors, stating that it should not be a mere formality. Pandey's remarks come as the NFRA plans to engage with large listed companies to promote accounting standards and curb corporate frauds. This regulatory outreach is part of efforts to protect retail stock investors, a focus highlighted by Finance Minister Nirmala Sitharaman.
NFRA imposes Rs 2.5 crore fine on two auditors in Reliance Commercial Finance case
The National Financial Reporting Authority (NFRA) has penalized two auditors with fines totaling Rs 2.5 crore for professional misconduct and auditing lapses in the Reliance Commercial Finance case for FY2018-19. It imposed a Rs 2 crore fine on Shridhar & Associates and Rs 50 lakh on Ajay Vastani, along with a 5-year ban on Vastani from undertaking audits. The penalties were issued following a report of suspected fraud and inadequate audit procedures by the auditors.
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Ashneer Grover accused of hypocrisy after demanding roast video removal: Netizens calls him 'Rakhi Sawant of startup world'
Ashneer Grover, renowned for his blunt critiques on Shark Tank India, faced backlash after comedian Aashish Solanki revealed that episode 5 of his 'Pretty Good Roast Show' was removed from YouTube following Grover’s demand. Solanki's roast humorously addressed Grover’s removal from BharatPe, which didn’t sit well with Grover, leading him to request the segment's removal. Social media erupted with criticism, accusing Grover of hypocrisy and inability to handle jokes.
Australia tightens student visa rules, increases financial requirement as migration surges
Australia has raised student visa savings to A$29,710, enforces stricter English rules, and has issued warnings of penalties for misconduct. Efforts aim to tackle migration surge, maintain rental market sustainability, and uphold integrity in the education sector.
More and more Indian companies ramp up background checks on C-suite
Indian companies discreetly monitor CEOs and key personnel through ongoing background screening, focusing on governance, fraud risk, legal liabilities, and regulatory compliance, with costs ranging from ₹1.5-7 lakh.
NFRA debars auditors, imposes Rs 50 lakh penalties for lapses in Brightcom, CMIL cases
The National Financial Reporting Authority (NFRA) has barred auditors of M/s Brightcom Group for up to ten years and imposed heavy monetary penalties on them, citing professional misconduct in auditing the company between FY20 and FY22.
How a hush money scandal tied to a porn star led to Trump's first criminal trial
Trump faces trial in New York for hush money payments to suppress stories of extramarital affairs. The case involves payments to Stormy Daniels and Karen McDougal orchestrated by Michael Cohen and the National Enquirer tabloid.
Harassment and drugs plagued a Citigroup division for years
A recent expose reveals a culture of harassment and discrimination within Citigroup's equities unit in New York. Interviews with 22 insiders describe a decade-long pattern of misconduct, including ogling female colleagues, rating them by looks, and discussing sexual conquests. Complaints to HR and senior executives yielded little change, with some alleged perpetrators still employed. Citigroup, known for its efforts towards inclusivity, faces scrutiny over its handling of the situation amidst ongoing efforts to boost its equities trading revenue.
NFRA debars auditor for lapses in books of Maharashtra-based Bilcare
The National Financial Reporting Authority (NFRA) has debarred auditor Ratan Laxminarayan Rathi of RL Rathi & Co for two years and imposed a penalty of Rs 3 lakh for professional misconduct in the audit of Bilcare. The financial statements of Bilcare were misstated due to interest cost recognition. Sebi reported the lapses.
US prosecutors in Binance case urge judge to accept plea
The crypto trading company pleaded guilty late last year to anti-money laundering and sanctions violations and agreed to pay $4.3 billion in penalties. In a sentencing memo filed on Friday in federal court in Seattle, US prosecutors urged a federal judge to accept the plea deal.
NFRA bans 2 entities for professional misconduct in Seya Industries matter
The National Financial Reporting Authority (NFRA) has imposed a fine of Rs 20 lakh on an auditor and barred him for 10 years for professional misconduct in the matter of Seya Industries Ltd.
Audit regulator NFRA slaps Rs 50 lakh penalty on chartered accountant for lapses
Highest penalty of Rs 50 lakh in recent years was slapped by NFRA on a chartered accountant for professional misconduct that enabled business services provider Quess Corp to claim undue income tax deduction of almost Rs 971 crore over three years. Subsequently, NFRA looked into the professional conduct of the chartered accountants and their firms involved in the certifications that formed the basis of the income tax deduction claims.
BP pulls back $40 million in pay from former CEO Bernard Looney
The company dismissed him without notice effective Dec. 13 and said on Wednesday Looney will not receive further salary or benefits from the dismissal date, and nor will he be paid an annual bonus for fiscal 2023.
NCLAT upholds NFRA’s power. What does it mean for auditors and larger financial sector
The NFRA can also recommend accounting and auditing policies and standards to the government for adoption. Before it was set up, the Institute of Chartered Accountants of India (ICAI) had, more or less, exclusive jurisdiction over disciplining the auditors. The Ministry of Corporate Affairs and regulators like Sebi have limited oversight over auditors.
NCLAT upholds NFRA penalty on DHFL auditors
The National Company Law Appellate Tribunal has upheld the penalty imposed by the National Financial Reporting Authority (NFRA) on auditors of Dewan Housing Finance Corporation Ltd (DHFL). The NFRA had fined 18 DHFL auditors Rs 1 lakh each, with 14 of them being barred from practicing for six months to a year. The auditors were found guilty of misconduct during branch audits and were blamed for failing to detect fraud at DHFL.
Murdaugh Mysteries Timeline: Disgraced attorney Alex Murdaugh receives 27 year sentence for financial crimes
Alex Murdaugh, implicated in murders and financial crimes, receives a 27-year prison sentence for embezzling millions from his law firm and clients. The saga, spanning from a fatal boat crash to high-profile murder trials, marks a downfall in the legacy of a prominent South Carolina lawyer. Murdaugh's guilty plea, admitting to a decade-long fraud, amplifies the shattered trust among victims.
'Binance lapses boosted terrorists and hackers'
The stunning turn of events means Zhao, the most powerful crypto figure in the world, faces prison time and will no longer run the industry's largest exchange. It comes after a multiyear investigation by federal prosecutors and the fraud conviction earlier this month of Sam Bankman-Fried, the disgraced founder of the collapsed FTX exchange.
Toyota to pay $60 million for illegal lending, credit reporting misconduct- US regulator
The Consumer Financial Protection Bureau on Monday said Toyota Motor Credit will pay a $12 million civil fine, and $48 million to harmed consumers. Toyota Motor Credit provides financing for people who buy vehicles at Toyota dealerships.
NFRA levies Rs 15 lakh fine on two auditors for lapses in Lexus Granito India audit
In its order on Wednesday, the regulator found that Lexus Granito India Ltd (LGIL) had unilaterally written back substantial amounts of its liabilities and treated them as other income, which resulted in overstatement of profits by Rs 2.31 crore in 2017-18, and an understatement of losses by Rs 5.89 crore in 2018-19 and Rs 3.15 crore in 2019-20.
BBC presenter accused of inappropriate and financial misconduct, prompting concerns and calls for investigation
A BBC presenter is facing allegations regarding misconduct for allegedly purchasing explicit photos. The news organisation has responded in this matter.
Robust mechanism to address gender-based misconduct in sports imperative: SC judge Hima Kohli
It is imperative to establish a robust mechanism to address gender-based misconduct as the creation of an inclusive environment sends the message that women in sports deserve respect and protection from discrimination and harassment, Supreme Court judge Hima Kohli said. Justice Kohli spoke at a national seminar on 'Women Empowerment through Sports' on Friday.
NFRA imposes fine, debars auditors for 3 yrs for professional misconduct, other lapses in audit of SRS Ltd
An investigation by SFIO had revealed that the company and its group companies had presented financial statements containing false statements of debtors and indulged in the malpractice of round-tripping and layering of transactions resulting in inflated purchases and sales.
NFRA imposes fine, bans auditors for 1 yr for misconduct in audit of DHFL branches
As per the order, NFRA's investigation revealed that the appointment of none of the 33 branch auditors was approved at the Annual General Meeting (AGM) of DHFL, as required by the Companies Act. According to NFRA, the auditors also portrayed themselves as the "branch statutory auditor" in all communications with the DHFL and CAS, and issued an "Independent Branch Auditors' Report".
Adidas launches probe into misconduct allegations against Kanye West
The investigation follows a report by Rolling Stone magazine that detailed alleged incidents of inappropriate behavior by Ye toward staff and prospective employees. Rolling Stone cited interviews with more than two dozen former Yeezy and Adidas staff.
KPMG faces $18 million misconduct fine for misleading regulator
The tribunal found five former KPMG employees guilty of misconduct during a routine FRC inspection of a Regenersis audit to end-June 2014 and a Carillion audit to end-December, 2016. The FRC, which is seeking to fine them between 50,000 pounds and 400,000 pounds and ban them from the profession for up to 15 years, alleged they provided false or misleading information or documents to the regulator. The five had contested the allegations.
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