Feds Accused of ‘Colossal Fraud’ in Standard Chartered Bank Suit

Brutus Trading LLC asked a New York federal district court to reopen its False Claims Act suit against Standard Chartered Bank alleging misrepresentations about transactions with Iranian entities that violated sanctions restrictions.

Brutus Trading says the bank violated the FCA by misleading the US government by concealing violations of the Iran sanctions regime before entering into a deferred prosecution agreement. Standard Chartered’s deliberate use of electronic records flaws to beat its own suspicious transaction detection system allowed the bank to avoid paying money to the government it was required to and are reverse false claims under the FCA, Brutus contends. ...