SEC Charges Deutsche Bank with FCPA Violations Related to Its Hiring Practices
Aug. 22, 2019
File No. 3-19373
August 22, 2019 – The Securities and Exchange Commission today announced that Deutsche Bank AG will pay more than $16 million to settle charges that it violated the FCPA by hiring relatives of foreign government officials in order to improperly influence them in connection with investment banking business.
According to the SEC’s order, Deutsche Bank employees hired relatives at the request of foreign officials in both the Asia-Pacific region and Russia to obtain or retain business or other benefits. These “Referral Hires” bypassed Deutsche Bank’s highly competitive and merit-based hiring process and were often less qualified than applicants hired through the bank’s formal hiring process.
The SEC’s order found that Deutsche Bank violated the books and records and internal accounting controls provisions of the Securities Exchange Act of 1934. Without admitting or denying the findings, the company agreed to pay disgorgement of $10,785,900, prejudgment interest of $2,392,950 and a $3 million civil penalty. The SEC considered the company’s remedial acts and its cooperation with the investigation when determining whether to accept Deutsche Bank’s offer of settlement.
The SEC’s investigation was conducted by Jennifer Moore and Tanya Beard of the FCPA Unit’s Salt Lake City office under the supervision of Daniel Wadley. The SEC appreciates the assistance of the U.S. Department of Justice’s Fraud Section.