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The so-called Sons and Daughters Program was nothing more than bribery by another name,” said Assistant Attorney General Caldwell.  “Awarding prestigious employment opportunities to unqualified individuals in order to influence government officials is corruption, plain and simple…” (USDOJ)

While a former Louisiana governor allegedly famously said that just because someone is kin or a friend doesn’t mean that they are not qualified for the job, it also doesn’t mean that they are qualified, as seen in this case.

U.S. businesses cannot lawfully seek to gain a business advantage by corruptly influencing foreign government officials,” said U.S. Attorney Capers.  “The common refrain that this is simply how business is done overseas is no defense.” (USDOJ) 

It is worth noting that high levels of immigration from corrupt countries to less corrupt countries will bring these habits to the host countries, as seen in the “this is how business is done”. Furthermore, the non-corrupt citizens of the host countries are put at an unfair advantage since they don’t know how to bribe if they wanted to! Whether this is mafia or corrupt mafia-like government officials matters little in its impacts. Corruption is often even visible to the naked eye. Over the last decades Italian mafia have moved north into Switzerland, as well as Russian and Kosovard mafia, almost certainly facilitated by Switzerland’s membership in Schengen, which is the free movement of people part of the EU. Switzerland isn’t a member of the EU but Schengen means that it has been inundated with immigrants, because of a stronger economy. And, that criminals and terrorists can and do run back and forth across the borders, especially from neighboring countries. Is that why the Swiss, French, Dutch and Portuguese so fear reporting corruption? https://miningawareness.wordpress.com/2016/11/18/half-of-swiss-french-dutch-portuguese-say-people-fear-reporting-corruption/ The apparent impacts upon Switzerland of corruption and decades of unrestrained immigration are utterly shocking and apparent in widespread meanspirited nasty incivility, literal filthiness, and destruction of hills, green space, and houses to make way for immigrant apartments (flats). Switzerland is the future of all who continue to allow an immigration free for all. Well, for that matter, the buy-up of once nice motels by India immigrants who came initially through Mexico destroyed the majority of US motels, running them into the ground, and made once pleasant cross-country travel into an overpriced nightmare (aka “Patel Hotels”) complete with yellowed sheets. The 1965 immigration law allowed the increasing piggy-backing of relatives, which, in turn, allowed this motel takeover. Hotel and Motel chains which hire workers could not and cannot compete with free “family” labor. Unfortunately, Trump’s onto something that most have overlooked, as it’s not just Mexicans coming across the southern US border. Mafia boss Carlos Marcelo was deported by the Kennedy Administration. Did anyone whine that it was racist to deport an Italian mobster?

Overpopulation, whether due to immigration or refusal to address population explosion by pretending that having more than 2 kids (replacement) is a human right, almost always creates shortages of jobs, goods, and services, including energy. How to solve the shortage? The shortage is generally “solved” through patronage or nepotism – by giving the scarce resources to family, friends, or through bribes. The other option is a sort of lottery system, including rolling blackouts of energy. And, of course, planning, which must include family planning for 2 children.

In the so-called developed countries where population growth, without immigration, is zero, the only job growth needed would be for the existing population moving into the workforce. More jobs are needed because of immigration. Countries with zero population growth can also more easily and quickly move to renewables and do other things which are good for the environment.

Immigration for economic growth is a pyramid scheme hoax, as Americans have learned (again) over the last decades. The Americas were colonized as land-grabbing mining and immigration schemes.

Those who want to dump their excess populations, and others who benefit from this fraudulent scheme, must be the ones shouting loud in the media that opposing population dumping is racism. They need to be called on their lie. The louder they shout their lies the more people need to shout the truth. America is not a “dream”. America is the product of Europe’s historic population dumping and slavery, which drastically reduced African populations. America has never been “white”, but it was founded as an extension of Atlantic Culture, not Asian. Europe has its own mostly indigenous populations.

Many refugees have been created due to land grabs by mining companies and for agriculture. Once people are chased from their lands they can no longer benefit from protections accorded to indigenous peoples. However, refugees are small in number compared to legal (and illegal) economic migrants from overpopulated countries such as India and China.

Furthermore, the countries which were historically unfavored for immigration to the US are generally more corrupt with more mafia influence. This includes some European countries. Was it racism to want to keep out the Italian mafia, for instance? The corruption trends by country still largely stand, though with more and more population dumping one can expect increasing corruption everywhere: https://files.transparency.org/content/download/2039/13168/file/2016_GCB_ECA_EN.pdf
The Teapot Dome Scandal: https://en.wikipedia.org/wiki/Immigration_Act_of_1924
https://en.wikipedia.org/wiki/Teapot_Dome_scandal Along with the Teapot Dome Scandal, in the early 1920s people had to pay a $500 bribe to get a US Federal job paying $500 per year, probably because of the immigration-induced explosion of cheap labor. Those who didn’t bribe didn’t get the jobs. Some learned decades later why they hadn’t gotten the Federal job. This is real, living, oral history and may or may not be in a book. Each time there was a major European plague, salaries went up – this is documented in books, and should give pause.

Look at India (and Saudi Arabia) taking traditional lands from Africans to feed India’s population because India has a “human right” to over-reproduce, and surely contributing to the mysterious arrival of boatloads full of Africans everywhere: https://miningawareness.wordpress.com/2016/11/18/the-lesser-known-story-of-indias-role-in-ethiopian-land-deals Why do these Africans have no human rights? Why do Europeans have no human rights? Or Americans? Isn’t it better for everyone for people to stay home on their land, rather than being scattered to the four winds or drowning at sea as refugees? Even more than other places, India, China, and the Middle East need to re-examine their love affair with gold, as well as do population control rather than population dumping.

China is stripping Africa too, of course, as everyone knows: “Asia is the most populous continent, with its 4.3 billion inhabitants accounting for 60% of the world population. The world’s two most populated countries alone, China and India, together constitute about 37% of the world’s population.https://en.wikipedia.org/wiki/World_population Despite being over 1/3rd of the world population, people from India and China can come to the US as immigrants and on H1B and other visas and benefit from the Affirmative Action policies designed to help create a level playing field for African Americans who were persecuted for hundreds of years with slavery and Jim Crow. Thus, Holtec’s India born Kris Pal Singh gets to claim disadvantaged minority status for his company which manufactures cheaply made nuclear waste cans, and his pro-nuclear relative-family friend, SC Gov Nikki Haley, is being eyed up by Trump as possible Secretary of State, where she can promote the East India American nuclear industry across the world – never mind that she’s unqualified. Who cares? She would count as a double minority, even though she and everyone else consider her “white”. She’s also having South Carolina sue the US government to remove nuclear waste from the state but wants to keep making more radioactive waste at the Savannah River nuclear site, and elsewhere. How can she represent a government that she is suing? People from India get to claim minority status apparently because an earlier Sikh from India argued that he was white, but since he looked like an Ethiopian the judge ruled he wasn’t white almost 100 years ago: https://en.wikipedia.org/wiki/Bhagat_Singh_Thind Probably even Japanese firms like Toshiba-Westinghouse get to claim minority status. Why doesn’t Trump choose some African Americans who ARE qualified instead of an unqualified East Indian? Why did Trump allegedly donate so much to Nikki Haley for her election campaigns? He also donated to Norcross who serves on the Holtec Board. Is Trump related to the German Trumpp who worked for the East India company and translated Sikh scriptures?

These Chinese “Sons and Daughters”, hired by JP Morgan, can surely now come to the US as “investment bankers” and declare themselves a “minority” and benefit from Affirmative Action (and the employer benefits), which was put into place to help African Americans.

From the US DOJ:
Department of Justice
Office of Public Affairs
Thursday, November 17, 2016

JPMorgan’s Investment Bank in Hong Kong Agrees to Pay $72 Million Penalty for Corrupt Hiring Scheme in China

JPMorgan Securities (Asia Pacific) Limited (JPMorgan APAC), a Hong Kong-based subsidiary of multinational bank JPMorgan Chase & Co. (JPMC), agreed to pay a $72 million penalty for its role in a scheme to corruptly gain advantages in winning banking deals by awarding prestigious jobs to relatives and friends of Chinese government officials.

Assistant Attorney General Leslie R. Caldwell of the Criminal Division, U.S. Attorney Robert L. Capers of the Eastern District of New York and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office made the announcement. 

“The so-called Sons and Daughters Program was nothing more than bribery by another name,” said Assistant Attorney General Caldwell.  “Awarding prestigious employment opportunities to unqualified individuals in order to influence government officials is corruption, plain and simple.  This case demonstrates the Criminal Division’s commitment to uncovering corruption no matter the form of the scheme.”

“U.S. businesses cannot lawfully seek to gain a business advantage by corruptly influencing foreign government officials,” said U.S. Attorney Capers.  “The common refrain that this is simply how business is done overseas is no defense.  In this case, JPMorgan employees designed a program to hire otherwise unqualified candidates for prestigious investment banking jobs solely because these candidates were referred to the bank by officials in positions to award business to the bank.  In certain instances, referred candidates were hired with the understanding that the hiring was linked to the award of specific business.  This is no longer business as usual; it is corruption.”

“Creating a barter system in which jobs are awarded to applicants in exchange for lucrative business deals is a corrupt scheme in and of itself,” said Assistant Director in Charge Sweeney.  “But when foreign officials are among those involved in the bribe, the international free market system and our national security are among the major threats we face.  Those engaging in these illegal acts abroad may think they’re out of sight and out of mind, but they’re wrong.  The FBI has recently established three dedicated international corruption squads to combat this type of quid pro quo, and we’ll use all resources at our disposal to uncover and put an end to these crimes.”

According to JPMorgan APAC’s admissions, beginning in 2006, senior Hong Kong-based investment bankers set up and used a “client referral program,” also referred to as the “Sons and Daughters Program,” to hire candidates referred by clients and government officials.  The Sons and Daughters Program was used as a means to influence those same officials to award investment deals to JPMorgan APAC.  By late 2009, JPMorgan APAC executives and senior bankers revamped the client referral program to improve its efficacy by prioritizing those hires linked to upcoming client transactions.  In order to be hired, a referred candidate had to have a “directly attributable linkage to business opportunity.” 

According to admissions made in connection with the resolution, these quid pro quo arrangements were discussed internally among JPMorgan APAC bankers.  For example, in late 2009, a Chinese government official communicated to a senior JPMorgan APAC banker that hiring a referred candidate would significantly influence the role JPMorgan APAC would receive in an upcoming initial public offering (IPO) for a Chinese state-owned company.  The banker communicated this message to several senior colleagues, who then spent several months trying to place the referred candidate in an investment banking position in New York.  Despite learning from personnel in New York that this referred candidate was not qualified for an investment banking position, senior JPMorgan APAC bankers created a new position for the candidate in New York, and JPMorgan APAC thereafter obtained a leading role in the IPO.  Further, JPMorgan APAC employees misused compliance questionnaires to justify and paper over corrupt business arrangements.  Employees also used a template with pre-filled answers, including that there was “no expected benefit” from the hire, and compliance personnel drafted and modified questionnaires that failed to state the true purpose of the hire.
JPMorgan APAC further admitted that candidates hired during the scheme were typically given the same titles and paid the same amount as entry-level investment bankers, despite the fact that many of these hires performed ancillary work such as proofreading and provided little real value to any deliverable product. 
The corrupt scheme netted JPMorgan APAC at least $35 million in profits from business mandates with Chinese state-owned companies. 

JPMorgan APAC entered into a non-prosecution agreement and agreed to pay a criminal penalty of $72 million to resolve the matter.  As part of the agreement, JPMorgan APAC has agreed to continue to cooperate with the department in any ongoing investigations and prosecutions relating to the conduct, including of individuals, to enhance its compliance program, and to report to the department on the implementation of its enhanced compliance program.

The department reached this resolution based on a number of factors, including that JPMorgan APAC did not voluntarily and timely disclose the conduct at issue.  However, JPMorgan APAC did receive full credit for its and JPMC’s cooperation with the criminal investigation, including conducting a thorough internal investigation, making foreign-based employees available for interviews in the United States and producing documents to the government from foreign countries in ways that did not implicate foreign data privacy laws.  JPMorgan APAC also took significant employment action against six employees who participated in the misconduct resulting in their departure from the bank, and it disciplined an additional 23 employees who, although not involved in the misconduct, failed to effectively detect the misconduct or supervise those engaged in it.  JPMorgan APAC imposed more than $18.3 million in financial sanctions on former or current employees in connection with the remediation efforts.  Based on these actions and other considerations, the company received a non-prosecution agreement and an aggregate discount of 25 percent off of the bottom of the U.S. Sentencing Guidelines fine range. 

In related proceedings, the U.S. Securities and Exchange Commission (SEC) filed a cease and desist order against JPMC, whereby JPMC agreed to pay $130.5 million in disgorgement to the SEC, including prejudgment interest.  The Federal Reserve System’s Board of Governors also issued a consent cease-and-desist order and assessed a $61.9 million civil penalty. Thus, the combined U.S. criminal and regulatory penalties paid by JPMC and its Hong Kong subsidiary are approximately $264.4 million. 

The FBI’s New York Field Office investigated the case.  The department appreciates the significant cooperation and assistance provided by the SEC and the Federal Reserve Bank of New York in this matter.  Assistant Deputy Chief Leo Tsao and Trial Attorneys James P. McDonald and Derek J. Ettinger of the Criminal Division’s Fraud Section and Assistant U.S. Attorney James P. Loonam of the Eastern District of New York’s Business and Securities Fraud Section prosecuted the case. 

The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters.  Additional information about the Justice Department’s FCPA enforcement efforts can be found at http://www.justice.gov/criminal/fraud/fcpa.
Criminal Division
Criminal Fraud
USAO – New York, Eastern
Financial Fraud
Download JPMorgan Securities Asia Pacific NPA
Updated November 17, 2016