Credit Suisse Group AG was a Swiss financial firm that provided a variety of services, including investment banking, globally. Credit Suisse's shares were registered with the SEC and publicly traded on the New York Stock Exchange.
Credit Suisse (Hong Kong) Limited ("CSHK'), a wholly-owned subsidiary of Credit Suisse, provided securities products and financial advisory services in the Asia-Pacific region under the Credit Suisse brand.
According to the allegations in the cease and desist order, between 2007 and 2013, several senior managers at CSHK hired and promoted candidates referred by or related to government officials and executives at several state-owned entities in China and the Asia-Pacific region. These referral hires were, by and large, less qualified, lacking banking experience and relevant technical skills, than candidates hired through Credit Suisse's other employment channels. Despite their lack of qualifications and ongoing often poor job performance, these referral hires were provided with promotions and additional benefits. These referral hires were made as part of a quid pro quo with the government agencies and state-owned entities whereby Credit Suisse would win business from them.
In a settled administrative proceeding filed on July 5, 2018, the SEC issued a cease and desist order against Credit Suisse. Under the terms of the settlement, the SEC ordered Credit Suisse to cease and desist violations of the anti-bribery and internal controls provisions of the FCPA and to pay disgorgement of $24,989,843 plus prejudgment interest of $4,833,961. The SEC did not impose a civil penalty in light of the criminal fines paid in the related DOJ proceeding.
In a related proceeding on May 24, 2018, Credit Suisse and CSHK entered into a non-prosecution agreement with the DOJ. Under the terms of the agreement, the DOJ agreed not to prosecute either company for FCPA violations, and CSHK agreed to pay a criminal monetary penalty of $47,029,916. Both companies agreed to self-report to the DOJ on the status of their anti-corruption compliance for a term of three years.
