On Wednesday, numerous mainstream media sources reported French businessman Vincent Bolloré, Chairman and CEO of the investment group Bolloré, was charged by French investigators as part of a probe into the possible use of bribery in two African nations in order to obtain port contracts from public officials. Specifically, the investigation concentrates on suspicion of wrongdoing in the award of contracts to Bolloré S.A. to operate container terminals in Lome, Togo, and Conakary Guinea.

Bolloré’s business holdings include the global advertising agency Havas, a controlling stake in French media conglomerate Havas, and rail and port companies in Africa. Bolloré, who has built relationships with politicians and well-connected businessman in Africa Europe, has, in the past, combated scrutiny of its operations by filing litigation against journalists investigating his relationships.

Investigators from France’s financial crimes unit examined one of Havas’ subsidiaries helped facilitate the elections of the presidents of Togo (Faure Gnassingbe) and Guinea (Alpha Conde), notably, by underbilling them for advertising work. The investigation reportedly began after a tip from a former employee to law enforcement.

The investigation comes at a time when French authorities are increasing their prosecution of corruption. The judges in the case, Aude Buresi, and Serg Tournaire, are also investigating former French president Nicolas Sarkozy over allegations that former Libyan dictator Muammer Gadaffi donated €50 million to his 2007 presidential campaign. In addition authorities are probing Societe Generale S.A. over allegations of bribery related to the bank’s work with the Libyan Investment Authority.

As governments and international anti-corruption authorities globally are increasingly ramping up the investigation of bribery, money laundering, fraud, and other financial crimes, companies, fortunately, have options for business intelligence and risk mitigation. Partnering with Vcheck, a global investigations firm, can help ensure your business needs are met. This includes satisfactorily meeting domestic and international compliance regulations, identifying and avoiding troublesome business relationships, and researching investment opportunities.

Please reach out to Vcheck’s team at [email protected] with any questions on how your needs can be addressed.

Brock Treworgy

Washington D.C., April 16, 2018 —

The Securities and Exchange Commission today unveiled a public service announcement (PSA) to encourage investors to check the background of their investment professional by using the free search tool on Investor.gov before investing.  Investor.gov, the SEC’s website dedicated to individual investors, provides investors with tools and resources to help them invest wisely and avoid fraud.


“Investor education is an important line of defense against fraud and is critical to our efforts to both protect Main Street investors and improve their financial decision making,” said SEC Chairman Jay Clayton.  “Through public service announcements, investor alerts and bulletins, and direct outreach, the SEC will continue to focus on empowering investors.”

“It can be hard to spot a fraudster, and Investor.gov’s free search tools can help investors verify that they are dealing with a registered investment professional,” said Lori Schock, Director of the SEC’s Office of Investor Education and Advocacy.  “Investors who check the background of their investment professional and use the other tools and resources available on Investor.gov can make more informed investment choices – and better protect themselves from fraud.”

The PSA’s storyline involves a couple seeking advice from an alleged investment professional who turns out to be a fraud.  At first, the investment professional seems genuine, but as the conversation continues his fraudulent scheme quickly unravels.  He uses high-pressure sales tactics – typically a red flag of fraud – to persuade the couple to invest, with statements such as:

•You are definitely getting in at the perfect time

•This investment opportunity will not last long

•I can guarantee that your money will double

•There’s absolutely no risk to you

 

The SEC’s latest PSAs encourage investors to check the background of their investment professional.

The PSA stresses that most fraudsters are not this easy to spot and encourages investors to visit Investor.gov before investing.

The PSAs are in video and audio format.  Additional information on the PSAs can be found here.

More than 9 million new users have used Investor.gov since it launched in October 2009.  The SEC expanded its outreach program in 2016 to include PSAs to reach and educate more investors.  Since that time, the traffic on Investor.gov has increased by 86 percent.

Vcheck Global helps you know more about the people and companies you do business with.

On Thursday, Reuters reported the European Union extended sanctions for one year on Iran over human rights violations, after debating whether to impose a new set of penalties in an attempt to preserve the Joint Comprehensive Plan of Action agreement signed between the P5+1 countries (China, France, Germany, Russia, the United Kingdom, and the United States) and Iran in October 2015. United States President Donald Trump, an opponent of the deal, has given a May 12th deadline to renegotiate the arrangement, or else the United States will not extend sanctions relief.

Divided Camps

Europe is reportedly divided on how to best safeguard the deal. France, on the one hand, has pushed for new sanctions over Iran’s ballistic missile program, and Iran’s greater involvement in the Middle East. This includes in Syria, where Iran supports Syrian President Bashar al-Assad, Hezbollah in Lebanon, and a Houthi insurgency against the Yemeni military. Italy, on the other hand, fears any renegotiation would upset Tehran, and endanger European investments in the country after decades of international isolation. According to Rome, any new punitive measures would not necessarily prevent President Trump from leaving the agreement.

Next Steps

The European Union member state’s foreign affairs ministers must reach a unanimous agreement over a newer set of penalties. Germany and the United Kingdom reportedly support France, whereas Austria and Spain back Italy. Last month, London, Rome and Paris proposed targeting Iranian militias and commanders in building on the Union’s existing sanctions related to Syria, which includes travel bans and asset freezes on people, and a ban on doing business there. The current human rights sanctions, set to expire in April 2019, include asset freezes and travel bans against 82 people and one entity, as well as a prohibition of exports of equipment that could be used for internal repression and monitoring telecommunications. In March, Iran arrested activists and political opponents, as well as allegedly used torture to coerce confessions.

Compliance with Sanctions

Complying with United States Office of Foreign Asset Control and European Union Sanctions are critical for entities and institutions seeking to avoid liability. Any institution engaging in international business in large volumes, or conducting business with moderate to high risk individuals should consider partnering with Vcheck Global to ensure your business is fully compliant and has done its appropriate due diligence on its customers and partners. Also included on the Sanctions list are:

The Balkans
Belarus
Burundi
Central African Republic
Cuba
Democratic Republic of the Congo
Iraq
Lebanon
Libya
North Korea
Russia
Somalia
Sudan
Syria
Venezuela
Yemen
Zimbabwe

-Brock Treworgy

Please reach out to Vcheck’s team at [email protected] with any questions on how your needs can be addressed.

 According to The Washington Post, investigators have uncovered evidence of a multi-billion dollar corruption scheme which helped Iran evade sanctions for more than a decade. Iran is currently subject to United States Office of Foreign Assets Control (OFAC) sanctions for conducting destabilizing activites in the Middle East, including (but not limited to) the funding and training of terrorist groups, human rights abuses, and attempts to subvert internationally recognized governments. The sanctions, in particular, target individuals or entities that materially contribute to the Government of Iran with respect to its arms or ballistic missile program.

Future Bank

According to a Bahraini government audit, Bahrain-based Future Bank, a joint venture partly owned by two of Iran’s largest lenders, Bank Saderat Iran, and Bank Melli Iran, secretly helped Iran evade sanctions for more than a decade, and frequently altered financial documents to hide illict trade between Iran and dozens of foreign partners. FutureBank, aloong with all of its branches worldwide, was previously listed on the Specifically Designated Nationals list maintained by OFAC in March 2008, before it was removed as part of the Joint Comprehensive Plan of Action Agreement. The entity was still identified as part of the Government of Iran, prohibiting transactions with U.S. entities. Bank Saderat Iran and Bank Melli Iran had previously been accused by U.S. officials of helping finance Iran’s nuclear program and its international terrorism network.

The Scheme

The bank reportedly concealed at least USD 7 billion worth of transactions between 2004 and 2015, a time when many Iranian banks were barred by not just OFAC Sanctions, but by the European Union, for Iran’s nuclear activities. Auditors discovered hundreds of bank accounts tied to individuals convicted of crimes including money laundering and terrorist financing, as well as phantom loans provided to companies that operate as fronts for Iran’s Islamic Revolutionary Guard Corps, according to filings in the Permanent Court of Arbitration in The Hague. One of the evasion techniques used, “wire-stripping” involved the removal or changing of identifiying information when transferring money between banks, in order to conceal Iran’s involvement. In short, the bank allowed Iran to buy and sell billions of dollars worth of goods in defiance of international sanctions intended to punish Tehran over its nuclear program and support for terrorist groups.

 

Reaction

According to Bahraini Foreign Minister Khalin bin Ahmed al-Khalifa, criminal proceedings were being pursued in the country, and the results of the investigation would be shared with other countries. In recent years, the Bahraini government has accused Iran of inciting violence against the country’s monarchy. In particular Bahraini officials criticized Future Bank for allowing a Shiite cleric tied to opposition movements in Bahrain, Isa Qassim, to make millions of dollars of cash deposits over several years. According to several Bahraini officials, he directed some of that money to a charity allegedly linked to terrorism, a technique commonly used in terrorist financing, and is difficult to prove.

-Brock Treworgy