Host Gregg N. Sofer is joined by Salvador Hernandez, former senior FBI official and private-sector compliance officer and current senior compliance and ethics advisor at Husch Blackwell, to discuss the recent U.S. Department of Justice settlement involving Danske Bank A/S. The settlement resolved a DOJ investigation concerning instances of bank fraud that allowed Danske Bank to move billions of dollars through the U.S. financial system from high-risk accounts for non-resident customers of the bank’s Estonia-based branch. Danske Bank also settled charges brought by the U.S. Securities and Exchange Commission (SEC) in a parallel proceeding for violations of U.S. securities laws. As part of the settlement, Danske Bank pled guilty to conspiracy to commit bank fraud and agreed to forfeit $2.06 billion. In a notable development, the settlement also involved a first-of-its-kind provision whereby Danske Bank agreed to “implement evaluation criteria related to compliance in its executive review and bonus system so that each Bank executive is evaluated on what the executive has done to ensure that the executive’s business or department is in compliance with the Compliance Programs and applicable laws and regulations.” Our discussion will explore how the Danske Bank settlement breaks new ground by targeting executive compensation in the context of compliance program failures.
Host Gregg N. Sofer is joined by Salvador Hernandez, former senior FBI official and private-sector compliance officer and current senior compliance and ethics advisor at Husch Blackwell, to discuss the recent U.S. Department of Justice settlement involving Danske Bank A/S. The settlement resolved a DOJ investigation concerning instances of bank fraud that allowed Danske Bank to move billions of dollars through the U.S. financial system from high-risk accounts for non-resident customers of the bank’s Estonia-based branch. Danske Bank also settled charges brought by the U.S. Securities and Exchange Commission (SEC) in a parallel proceeding for violations of U.S. securities laws.
As part of the settlement, Danske Bank pled guilty to conspiracy to commit bank fraud and agreed to forfeit $2.06 billion. In a notable development, the settlement also involved a first-of-its-kind provision whereby Danske Bank agreed to “implement evaluation criteria related to compliance in its executive review and bonus system so that each Bank executive is evaluated on what the executive has done to ensure that the executive’s business or department is in compliance with the Compliance Programs and applicable laws and regulations.”
Our discussion will explore how the Danske Bank settlement breaks new ground by targeting executive compensation in the context of compliance program failures.
Gregg counsels businesses and individuals in connection with a range of criminal, civil and regulatory matters, including government investigations, internal investigations, litigation, export control, sanctions, trade secrets and regulatory compliance. Prior to entering private practice, Gregg served as the United States Attorney for the Western District of Texas—one of the largest and busiest United States Attorney’s Offices in the country—where he supervised more than 300 employees handling a diverse caseload, including matters involving complex white-collar crime, contract fraud, national security, cyber crimes, public corruption, money laundering, export violations, trade secrets, tax, large-scale drug and human trafficking, immigration, child exploitation and violent crime.
Sal collaborates closely with attorney teams and clients to strategize at all stages of investigative and compliance program work. He has experience building compliance structures for clients and is equally adept at program review, risk assessment, crisis response and mitigation.
Prior to coming to Husch Blackwell, Sal spent 25 years at the Federal Bureau of Investigation, where he rose through the ranks, via numerous assignments, from Special Agent to executive-level positions at FBI Headquarters in Washington, DC, the U.S. Embassy in Mexico City, and the FBI’s Los Angeles Field Office. At FBI Headquarters, as Deputy Assistant Director in the Criminal Investigative Division, he had oversight responsibility for the FBI’s Financial Crimes and Public Corruption Programs. In Los Angeles, he held the title of Assistant Director and served as the office’s chief executive, with responsibility for the work of more than 1,300 FBI employees charged with carrying out the FBI’s criminal, counterterrorism and national foreign-intelligence responsibilities in Southern California. Sal followed his FBI career with a career in the private sector where, first as Security Director, and then as Vice President of Compliance and Ethics, he expanded the security and investigations programs and established and led the legal and regulatory compliance efforts at Enterprise Holdings, Inc., the world’s largest vehicle rental, leasing, and sales company.
Additional Resources
U.S. Department of Justice, press release, “Deputy Attorney General Lisa O. Monaco Delivers Remarks on Corporate Criminal Enforcement,” September 15, 2022
U.S. Department of Justice, press release, “Danske Bank Pleads Guilty to Fraud on U.S. Banks in Multi-Billion Dollar Scheme to Access the U.S. Financial System,” December 13, 2022
U.S. Securities and Exchange Commission, press release, “SEC Charges Danske Bank with Fraud for Misleading Investors about Its Anti-Money Laundering Compliance Failures in Estonia,” December 13, 2022
Wall Street Journal, “Danske Bank to Pay $2 Billion to Resolve Estonia Money-Laundering Probes,” December 13, 2022
Reuters, “Danske Bank pleads guilty to resolve long-running Estonia money-laundering probe,” December 13, 2022
Danske Bank, Company Announcement No. 18/2022, “Danske Bank reaches coordinated resolutions with the US and Danish authorities regarding the Estonia matter,” December 13, 2022