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Deutsche Bank Agrees To Pay More Than $130 Mln To Settle US Bribery And Fraud Claims

Deutsche Bank agreed to pay more than $130 million to settle the U.S. government's investigation into violations of the Foreign Corrupt Practices Act and a separate investigation into a commodities fraud scheme.

The settlement includes criminal penalties of $85.19 million, criminal disgorgement of $681,480, victim compensation payments of $1.22 million, and $43.33 million to be paid to the U.S. Securities & Exchange Commission in a coordinated resolution.

"Deutsche Bank engaged in a criminal scheme to conceal payments to so-called consultants worldwide who served as conduits for bribes to foreign officials and others so that they could unfairly obtain and retain lucrative business projects," said Acting U.S. Attorney Seth DuCharme of the Eastern District of New York.

According to admissions and court documents, between 2009 and 2016, Deutsche Bank, acting through its employees and agents, including managing directors and high-level regional executives, knowingly and willfully conspired to maintain false books, records, and accounts to conceal payments to a business development consultant (BDC) who was acting as a proxy for a foreign official and payments to a BDC that were actually bribes paid to a decisionmaker for a client in order to obtain lucrative business for the bank.

Deutsche Bank made payments to business development consultants that were not supported by invoices or evidence of any services provided. Deutsche Bank employees created or helped BDC create false justifications for payments.

According to admissions and court documents, between 2008 and 2013, Deutsche Bank precious metals traders engaged in a scheme to defraud other traders on the New York Mercantile Exchange Inc. and Commodity Exchange Inc., which are commodities exchanges operated by the CME Group Inc.

Traders on Deutsche Bank's precious metals desk in New York, Singapore, and London placed orders to buy and sell precious metals futures contracts with the intent to cancel those orders before execution, including in an attempt to profit by deceiving other market participants through injecting false and misleading information concerning the existence of genuine supply and demand for precious metals futures contracts.

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