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The Morning Risk Report: Credit Suisse Found Guilty in Money-Laundering Case Tied to Cocaine Ring
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Good morning. Credit Suisse Group AG and a former employee were found guilty Monday in a Swiss federal criminal court of helping a Bulgarian crime ring launder money related to cocaine trafficking.
The court found Credit Suisse didn’t do enough to prevent money laundering by members of the crime ring, which prosecutors said moved tons of cocaine into Europe and washed millions of dollars through Credit Suisse. It fined Credit Suisse around $2.1 million and ordered it to pay around $20 million to the Swiss government.
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Content from our Sponsor: DELOITTE
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Accounting for NFTs in an Expanding Metaverse
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As companies weigh the strategic benefits of a blockchain-enabled metaverse, they may need to take a fresh approach to account for nonfungible tokens (NFTs) and other technologies. Read More ›
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Credit Suisse said it would appeal the decision. It noted that the alleged offenses date to more than 14 years ago. It had said it was astonished to be charged when prosecutors brought the case in December 2020. The bank on Monday said it is continually testing its anti-money-laundering framework and has been strengthening it over time.
The court said Credit Suisse made it possible for the crime ring to launder money through the bank between July 2007 and December 2008 by failing to adequately monitor its accounts and make sure the business complied with anti-money-laundering rules. The crime ring allegedly recruited a Bulgarian wrestler and others in his orbit for operations transporting drugs and laundering money. [Read more]
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The SPAC said the subpoenas and other investigations could delay a merger with Trump Media & Technology Group.
PHOTO: ROSS D. FRANKLIN/ASSOCIATED PRESS
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Digital World acquisition discloses federal subpoenas. Digital World Acquisition Corp., the special-purpose acquisition company that plans to merge with former President Donald Trump’s social-media company, said a federal grand jury in the Southern District of New York has issued subpoenas to each member of its board.
The blank-check company said Monday in a securities filing that it learned of the subpoenas on June 16. The subpoenas seek some of the same documents that were previously requested by the U.S. Securities and Exchange Commission as part of a separate and previously disclosed investigation, Digital World said.
Digital World also said Rocket One Chief Strategy Officer Bruce Garelick had resigned from the Digital World board effective June 22. [Read more]
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A Vermont state trooper, center, speaking to a resident in Barnet, Vt., on Jan. 8, 2018, close to where the body of Gregory Davis was found.
PHOTO: DANA GRAY/CALEDONIAN-RECORD/ASSOCIATED PRESS
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Biotech wizard left a trail of fraud—prosecutors allege it ended in murder. Even as a teenager back in Turkey, Serhat Gumrukcu dazzled audiences. In a 2002 video, he opened one of his magic shows dancing with a cane that appeared to be levitating. He was introduced as a medical student and went by the stage name “Dr. No.”
A little more than a decade later, not long after Mr. Gumrukcu arrived in the U.S., he had his hand in multimillion-dollar oil and real-estate deals. Yet his best-known venture was in medicine. For a time, he thrilled investors with ideas for groundbreaking treatments and drew special notice from the government’s top infectious-disease official, Anthony Fauci.
In America, the magician had found a new, more lucrative audience. [Read more]
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McKinsey & Co. has been a top government consultant since 2016 in Puerto Rico, helping the U.S. territory’s financial overseers manage its spending. In that time, corporate clients of the consulting firm have won tens of billions of dollars of government business, new disclosures show.
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Tether faced regulatory pressure last year and has been a hot topic at recent cryptocurrency events.
PHOTO: ORE HUIYING/BLOOMBERG NEWS
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More hedge funds bet against Tether as crypto melts down. Short sellers have been ramping up their bets against tether, the world’s largest stablecoin, amid a broad market selloff that has called into doubt the financial health of some crypto companies.
In the past month, more traditional hedge funds have executed trades to short tether through Genesis Global Trading Inc., one of the largest crypto brokerages for professional investors. These trades are worth “hundreds of millions” of dollars in notional value, said Leon Marshall, Genesis’s head of institutional sales. He declined to be more specific.
“There has been a real spike in the interest from traditional hedge funds who are taking a look at tether and looking to short it,” Mr. Marshall said in an interview. [Read more]
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Russian missiles hit Ukraine shopping mall as G-7 leaders pledge more aid. Russian missiles hit a shopping mall in central Ukraine on Monday, President Volodymyr Zelensky said, as Russia’s forces sought to surround the last major city in the eastern Luhansk region still under Kyiv’s control despite Western efforts to squeeze Moscow.
The strike came as Mr. Zelensky, in a virtual address to Group of Seven leaders meeting in Germany on Monday, made clear he wants to shorten the war, according to U.S. national security adviser Jake Sullivan, and the U.S. said it would provide more support for Ukraine’s military. [Read more]
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GE CEO to also run aviation business. General Electric Co. said Larry Culp is immediately taking over the reins of the company’s jet-engine business, giving the CEO direct oversight of the sole division that will remain after the manufacturer’s breakup is complete in 2024.
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McDonald’s names new CFO. McDonald’s Corp. has tapped Ian Borden to be its new finance chief as it works to revamp its U.S. franchise system and manage high inflation. Mr. Borden is president of the chain’s international operations, a role he took on in 2019.
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Antiabortion activists praying outside the Supreme Court in Washington, D.C., during a celebration on Monday of the court’s ruling overturning Roe v. Wade.
PHOTO: MICHAEL REYNOLDS/EPA/SHUTTERSTOCK
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Uncertainty over abortion access grows after Supreme Court ruling. Regions across the U.S. faced an uncertain abortion landscape on Monday, as some states moved to enforce new restrictions, others remained in limbo, and fresh legal battles began to take shape after the Supreme Court withdrew constitutional protections for abortion. [Read more]
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Supreme Court says high school coach can pray on field. The high court, siding with a football coach who knelt in prayer at the 50-yard line, ruled 6-3 that a school district cannot bar him from publicly exercising his faith on the field after the game, continuing a line of decisions lowering the wall between church and state. [Read more]
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