A former chief executive officer is indicted for allegedly bribing Japanese officials, while BIT Mining Ltd. agrees to a settlement of $10 million in foreign corruption charges.
A former chief executive officer was indicted for allegedly bribing Japanese officials, in addition to the resolution by BIT Mining Ltd. of a foreign bribery investigation.
Former CEO Accused of Taking Bribes
Between 2017 and 2019, Zhengming Pan, the former chief executive of 500.com Limited, now known as BIT Mining Ltd., was accused by the US Department of Justice of running a bribery scheme to bribe Japanese officials. Pan allegedly authorized illegal payments and excessive presents of about $2.5 million to get himself a license for an integrated casino resort in Japan. These actions were allegedly concealed using false business books and consulting contracts with outside consultants.
BIT Mining Ltd. to Pay $10 Million Penalty to Resolve Foreign Bribery Charges
At the same time, BIT Mining Ltd. consented to pay a $10 million penalty in order to resolve accusations brought by the DOJ and the U.S. Securities and Exchange Commission (SEC). The settlement also includes a $6 million criminal fine against the DOJ and a $4 million civil penalty against the SEC for violating the Foreign Corrupt Practices Act (FCPA) in connection with the same scheme through ACF subsidiaries. According to the SEC’s investigation, the corporation opened the nation’s casino resort by paying substantial sums of money in bribes to foreign officials, including members of the Japanese parliament.
Implications and Corporate Response
These developments highlight the heightened scrutiny of corporate practices and the enforcement of anti-corruption laws worldwide. BIT Mining Ltd. has stated its intent to continue strengthening compliance measures and to cooperate fully with regulatory authorities to prevent similar violations in the future.
The indictment of the former CEO and settlement by the company underscore the criticality of ethics and a robust framework of compliance in conducting international business. Corporations are becoming increasingly held accountable for the actions of their executives and thereby necessitate transparency and adherence to legal standards in all jurisdictions.
These remind the corporations all around the world that the apparent consequences of such malpractices put strict demands for vigilant compliance in the conduct of global business to maintain integrity.
