Bond Traders Charged in Kickback Scheme (with Bondi and Clark Comment)

The SEC charged four individuals with ties to a New York City brokerage firm in a scheme involving millions of dollars in illicit bribes paid to a high-ranking Venezuelan finance official to secure the bond trading business of a state-owned Venezuelan bank.

Bondi and Clark Comment: There is nothing novel about the charges in this matter or the cooperation between the U.S. Attorney's Office and the SEC. What is interesting here is that an examination by the SEC's broker-dealer examination staff apparently spotted the allegedly illegal payments, rather than a voluntary report by the entity or a whistleblower tip. In the post-Madoff era, the SEC's examination staff has become more adept at identifying criminal activity. Also interesting is that the SEC did not charge an FCPA violation, notwithstanding that kickback payments apparently were made to a government official.

See: Complaint.See also: Press Release.Questions on this item may be directed to Brad Bondi or Peter Clark.