Compliance & Ethics

Security giant Paragon Systems has agreed to pay $52 million to settle accusations that it rigged the system meant to benefit small businesses. The Herndon, Virginia-based contractor, which supplies security guards to federal buildings nationwide, stands accused of using fake "small businesses" as fronts to win contracts set aside for disadvantaged groups, all while allegedly funneling millions in kickbacks to its executives.

The Commodity Futures Trading Commission (CFTC) has awarded nearly $4 million to two whistleblowers whose timely and crucial information helped bring a significant enforcement action to a successful resolution. This decision underscores the vital role whistleblowers play in maintaining the integrity of U.S. markets and supporting regulatory enforcement.

The U.S. Department of Justice (DOJ), backed by state attorneys general from Maryland, Illinois, New Jersey, and New York, took a bold step today to halt UnitedHealth Group’s proposed $3.3 billion acquisition of home health and hospice provider Amedisys Inc. The lawsuit, filed in the District of Maryland, argues that the merger could lead to fewer choices, higher costs, and potentially lower standards of care for some of the nation’s most vulnerable patients and overburdened nurses.

In a fresh move aimed at tightening oversight on key players behind the scenes of the financial sector, the Prudential Regulation Authority (PRA), the Bank of England, and the Financial Conduct Authority (FCA) today introduced a framework to bring critical third parties (CTPs) under closer watch. With operational resilience as the focal point, this guidance outlines how these regulators will apply their new oversight powers to major tech firms, data processors, and essential service providers that keep UK finance running smoothly – or could, in a worst-case scenario, pose systemic risks if they stumble.

The Financial Conduct Authority (FCA) has handed Metro Bank PLC a £16,675,200 fine, accusing it of leaving the door wide open to potential money laundering risks due to poor transaction monitoring systems that went unchecked for over four years.

Venezuela’s Telefónica Venezolana—a subsidiary of Spanish telecom giant Telefónica S.A.—has agreed to pay over $85 million to resolve allegations of bribery. The telecom firm admitted to a scheme involving payments to Venezuelan officials to gain preferential access to U.S. dollars through a government currency auction, a critical exchange in a nation with tight foreign currency controls. This DOJ settlement spotlights not only the costs of corporate corruption but also the lengths companies sometimes go to work around challenging market conditions in places like Venezuela.

The Consumer Financial Protection Bureau (CFPB) has ordered Navy Federal Credit Union to pay over $95 million to settle allegations of “surprise” overdraft fees that blindsided millions of customers. The penalty includes $80 million in refunds to consumers and a $15 million fine that will go to the CFPB’s victims relief fund, marking the largest amount the CFPB has ever clawed back from a credit union.