Is this email difficult to read? View it in a web browser. ›

The Wall Street Journal. The Wall Street Journal.

Sponsored by
Deloitte logo.

The Morning Risk Report: Justice Department’s Oligarch Hunters Widen Scope to Include Facilitators

By Richard Vanderford

 

Good morning. Prosecutors tasked with investigating Russia’s oligarchs and their assets have a new target: lawyers, accountants and other facilitators that make it possible for the Kremlin and its allies to evade U.S. sanctions.

The Justice Department’s Task Force KleptoCapture is increasingly turning its gaze on the professional services providers who support Russian oligarchs, said Andrew Adams, the team’s inaugural director, in an interview with Risk & Compliance Journal's Dylan Tokar. Adams, who stepped down from his position in late July, on Thursday joined law firm Steptoe & Johnson.

  • Cracking down: Prosecutors in the past year have charged a U.S. lawyer who facilitated payments for Vekselberg and a U.K. citizen who allegedly worked as a property manager for Russian oligarch Oleg Deripaska. They have also targeted companies and individuals who have helped Russia secure military and other sensitive technologies.
     
  • More cooperation: "In the past, the ability to get quick, substantive, powerful, tangible and public support and cooperation abroad was extremely limited, because our sanctions regime wasn’t mirrored in other places," Adams said. "That changed almost literally overnight in February 2022...even beyond the EU and the U.K., cooperation is just fundamentally different and more robust than it was at any point previously."
 
Content from our Sponsor: DELOITTE
Meet Government’s Chief Data Officer in 2023

Government chief data officers are not simply back-office technology leaders. Today, they play a core role in mission enablement, according to a new report.  Keep Reading ›

More Risk & Compliance articles from Deloitte ›
 

Compliance

Vladislav Klyushin was convicted by a federal jury in Boston in February. PHOTO: U.S. ATTORNEY’S OFFICE/ASSOCIATED PRESS

Russian hacker sentenced to nine years in U.S. prison.

A Russian national found guilty of hacking into corporate earnings databases to steal and trade on nonpublic information about companies like Tesla and Roku was sentenced Thursday to nine years in prison.

The sentence for Vladislav Klyushin, handed down by a federal judge in Boston, adds to the U.S. government’s roster of Russian nationals in its possession as U.S. officials seek potential bargaining chips in a negotiated prisoner swap with Moscow for Americans, including the detained Wall Street Journal reporter Evan Gershkovich.

 ‏‏‎ ‎

Former FTX executive Ryan Salame pleads guilty.

Former FTX executive Ryan Salame on Thursday became the fourth associate of company founder Sam Bankman-Fried to plead guilty to criminal charges tied to the collapse of the crypto exchange.

The guilty plea places additional pressure on Bankman-Fried as he prepares to fight fraud charges in a coming trial. Three other members of Bankman-Fried’s inner circle have previously pleaded guilty to fraud and other offenses and are expected to testify against him at his trial starting Oct. 3.

 
  • Railroads that fail to provide reliable service could be ordered to share tracks with competitors under a proposed rule that backers say will increase competition in the business of moving cows, corn, chemicals and other goods across America.
 ‏‏‎ ‎
315,000

The amount of carbon credits, measured in metric tons of carbon dioxide, Microsoft agreed to buy from a startup that pulls the gas from the atmosphere using absorbent rocks.

 

Risk

ALEXANDRA CITRIN-SAFADI/WSJ

Health-insurance costs are jumping.

Health-insurance costs are climbing at the steepest rate in years, with some projecting the biggest increase in more than a decade will wallop businesses and their workers in 2024.

Costs for employer coverage are expected to surge around 6.5% for 2024, according to major benefits consulting firms Mercer and Willis Towers Watson, which provided their survey results exclusively to The Wall Street Journal.

 
  • A record year for cyberattacks on U.S. hospitals is putting patients in danger, as hospitals struggle to cope with disabled equipment and frozen data, an official from the American Hospital Association warned Thursday.
     
  • Why do companies’ IT projects fail so often? Here are four causes.
     
  • First Republic Bank’s collapse this spring was a watershed moment. Now a much smaller lender called Republic First Bank is in financial purgatory, a case that may test regulators and turn the idea of too-big-to-fail upside down.
 ‏‏‎ ‎

“There’s a triple-whammy: higher energy prices, a global environment that’s not conducive to goods trade and the China shock."

— Sander Tordoir, a senior economist at the Centre for European Reform in Berlin, on headwinds facing Germany's economy. The country was once Europe’s main engine of growth.
 

Special Report: Navigating AI

Last week, we shared how generative AI can reshape the economy and jobs. This week, we offer ways for you to leverage this technology while managing its risks and rewards:

Though U.S. workers say they are leery of AI watching over them, the technology can help prevent injuries at the workplace.

Artificial intelligence is helping buildings go greener. Here’s how.

Phishing attempts are being made indistinguishable from legitimate emails, but some security experts are using the technology to get ahead of attackers.

 

What Else Matters

  • Walmart is paying some new store workers less than it would have three months ago, a sign that employers are seeking to cut labor costs as the once-hot market for hourly staff cools.
     
  • General Motors delivered a counteroffer to the United Auto Workers union that shows the sides remain far apart on pay and other benefits, one week out from a strike deadline. Unions for Las Vegas Strip workers such as housekeepers and bartenders are also considering a strike.
     
  • Middle East monarchies eager for global influence are having a moment on the world’s financial stage.
     
  • Canada appointed a judge to lead an investigation into alleged foreign interference into the country’s politics, after security officials told politicians they believe China’s Communist Party paid agents to thwart rivals to Prime Minister Justin Trudeau in the 2021 general election.
     
  • Americans have developed a laxative habit.
 ‏‏‎ ‎

Deloitte Logo.
 

About Us

Follow us on X at @WSJRisk. Follow Risk & Compliance editor David Smagalla @DSmagalla_DJ and reporters Mengqi Sun @_MengqiSun, Dylan Tokar @dgtokar and Richard Vanderford @VanderfordRich.

You can reach us by replying to any newsletter, or email David at david.smagalla@wsj.com.

 
Share this email with a friend.
Forward ›
Forwarded this email by a friend?
Sign Up Here ›
 
Desktop, tablet and mobile. Desktop, tablet and mobile.
Access WSJ‌.com and our mobile apps. Subscribe
Apple app store icon. Google app store icon.
Unsubscribe   |    Newsletters & Alerts   |    Contact Us   |    Privacy Policy   |    Cookie Policy
Dow Jones & Company, Inc. 4300 U.S. Ro‌ute 1 No‌rth Monm‌outh Junc‌tion, N‌J 088‌52
You are currently subscribed as [email address suppressed]. For further assistance, please contact Customer Service at sup‌port@wsj.com or 1-80‌0-JOURNAL.
Copyright 2023 Dow Jones & Company, Inc.   |   All Rights Reserved.
Unsubscribe