Accounting StandardsCrimePractice Regulation

Deutsche Bank settles accounting violation charges for $130m

The bank was also charged with a number of accounting control violations and fraudulent trading practices between 2008 and 2017

Deutsche Bank has agreed to pay over $130m to settle both a Justice Department investigation that was launched into the firm’s violations of the foreign corrupt practices act and a Securities and Exchange Commission (SEC) probe into a commodities fraud scheme, according to Reuters.

The payout, two-thirds of which is comprised by a criminal fine, belongs to a three-year deferred prosecution agreement with the Justice Department and a related settlement with the SEC.

Charges against the firm, which included allegations of a scheme that attempted to conceal corrupt payments and bribes to false intermediaries, were made public at a federal court hearing in New York on Friday (8 January).

The bank was also charged with a number of accounting control violations and fraudulent trading practices between 2008 and 2017.

Robert Zink, acting deputy assistant attorney general at the Justice Department, said via Reuters: “Deutsche Bank engaged in a seven-year course of conduct, during which it failed to implement a system of internal accounting controls regarding the use of company funds and falsified its books and records to conceal corrupt and improper payments. 

“Separately, Deutsche Bank traders on three continents sought to manipulate our public financial markets through fraud for five years.”

The settlement is just one in a number of court cases for both the firm and its industry, with Deutsche Bank agreeing to a payout of $16m to resolve SEC accusations of hiring unqualified relatives to appease Russian officials in 2019.

Moreover, Credit Suisse Group was forced to pay $77m to settle a similar case last year, while JPMorgan resolved its almost identical allegations through a $264m settlement.

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