2 New AML Cases from Epoch Times and TD Bank + more

GM! This is The Risk Radar. Your frontline agent, bringing you the latest intel from the world of AML and cyber risk.

New TD Bank AML Case: Florida Employee Accused of Money Laundering

In a twist straight out of a crime thriller, a TD Bank employee in sunny Florida allegedly pocketed $200 bribes to help shuffle millions of dollars to Colombia. This juicy plot unfolded in Hollywood, Florida, where the now-ex banker, Gerardo Aquino Vargas, is accused of giving criminal clients a "friends and family" discount on illegal money transfers, according to charges filed in the U.S. District Court for the District of New Jersey.

Bribes and Banking:
Here's the scoop: Aquino Vargas reportedly handed out 28 debit cards to a co-conspirator, raking in a cool $5,600 in bribes. He spilled the beans during a candid chat, admitting he usually charges much more—between $500 and $800 per account. "Man, to me, this isn’t business. Honestly, I was thinking $200 per client with you guys," he confessed in Spanish, per court docs. However, the plot thickened when TD froze some of the cards due to sketchy ATM withdrawals in Colombia, and Aquino Vargas allegedly played hero, getting two of them unblocked.

The Larger Scheme:
The drama doesn't stop there. This scandal is part of a larger Justice Department probe into TD's anti-money laundering efforts, sparked by a 2021 case involving a New York City-based ring accused of laundering over $653 million from illegal fentanyl sales. Federal agents tracked the suspects making rounds at TD branches, allegedly bribing bank employees with gift cards and cash totaling at least $57,000.

TD's Response and Reforms:
TD is under the microscope, with potential fines looming around $2 billion. The bank's spokesperson, Lisa Hodgins, assured that they are cooperating with law enforcement to bring the bad guys to justice and revamp their AML defenses. "This is unacceptable, and we must and we will do better," she declared, emphasizing the bank's commitment to strengthening their AML strategies and holding leaders accountable.

A New Chapter for TD:
As the story unfolds, the spotlight is on TD's overhauled leadership and revamped AML measures. CEO Bharat Masrani addressed the bank's employees, acknowledging the program's shortcomings and vowing to fortify their defenses. With the bank setting aside a hefty $450 million for anticipated penalties and hinting at more on the horizon, it's clear TD is in a full-blown crisis mode, determined to rewrite its security narrative.

Launch Alert: Falcon for Insurability Soars into the Cybersecurity Scene!

CrowdStrike (Nasdaq: CRWD) just rolled out their latest game-changer: Falcon for Insurability. This fresh program is a golden ticket for cyber insurers to offer top-notch cyber protection via the AI-powered CrowdStrike Falcon® platform at some sweet, sweet preferred rates.

What’s the Big Deal?

Cyber insurers like Ascot Group, AXA XL, Beazley Insurance, Berkley Cyber Risk Solutions, Coalition, and Resilience are now breathing a bit easier. Why? Because hooking up with Falcon means they're covering organizations armed with the crème de la crème of cyber defenses. This isn’t just about fighting off cyber baddies—it’s about beefing up cyber resilience and slamming the door on breaches.

Why This Matters:

The cyberworld is a wild place lately, with attacks getting more cunning by the minute. This has left companies grappling with tough choices: fork out more dough for premiums, settle for skimpier coverage, or slice their cybersecurity budget. Not ideal, right? Well, Falcon for Insurability is changing the game. Carriers can now offer groundbreaking AI-driven protection at rates that don’t make your wallet weep.

Tech Specs to Geek Out Over:

With the Falcon platform, organizations can spot 96% more threats twice as fast as the competition, and zip through investigations 66% quicker. Translation? They're supercharging their breach-stopping powers, which is good news for everyone (except the cyber crooks).

CrowdStrike’s Master Plan:

Led by Daniel Bernard, Chief Business Officer, CrowdStrike isn’t just about selling software; they’re about understanding the ins and outs of cyber insurance. They've got a dedicated squad liaising with the cyber insurance world, ensuring that their AI-native tech doesn’t just protect—it makes organizations a safer bet for coverage.

Bottom Line:

Falcon for Insurability is here to make sure that when it comes to cybersecurity, businesses aren’t just surviving—they’re thriving. It’s about empowering leaders to not only tackle risks but to navigate through them with confidence. So, hats off to CrowdStrike for giving companies and insurers a brighter, more secure future!

Epoch Times CFO in Hot Water:

Big news folks! The U.S. Attorney's Office just announced the arrest of Weidong "Bill" Guan, the CFO of The Epoch Times, on charges connected to a whopper of a money laundering scheme allegedly worth at least $67 million. This wasn't your garden-variety financial mischief either; it spanned continents and involved everything from crypto trickery to pilfering unemployment benefits.

The Charges Unpacked:
Here's the rundown: Guan is facing a trio of charges— one for conspiring to launder money and two for bank fraud. He got nabbed on Sunday and has already pleaded not guilty. But the plot thickens with allegations that he and his cronies used stolen IDs and a slew of prepaid debit cards to funnel money into the media giant's coffers. It’s like something out of a heist movie, but with less charm and more legal trouble.

Financial Shenanigans:
The feds say that while Guan was playing CFO, he was also moonlighting as a master of the dark financial arts. Under his watch, The Epoch Times' revenue supposedly ballooned by 410%—from a cool $15 million to a staggering $62 million between 2019 and 2020. That’s not pocket change, folks!

Banks Smelled Something Fishy:
When banks started sniffing around the flurry of funky transactions, Guan allegedly played it off, claiming those millions were just generous donations to the company. Talk about a creative explanation!

Who’s The Epoch Times, Anyway?
For those out of the loop, The Epoch Times is a New York-based conservative media outlet, known for its sharp critiques of the Chinese Communist Party and cozy vibes with far-right figures in the U.S. They've been quite the champions of former President Donald Trump, spending over a million bucks on pro-Trump ads back in 2019.

Company’s Stance:
In true corporate style, The Epoch Times has distanced itself from the drama, stating they’re all about cooperating with the law and have put Guan on a timeout until this whole mess gets sorted.

If the allegations hold up, Guan could be looking at a hefty stint behind bars—up to 20 years for the money laundering charge and 30 years for each count of bank fraud. As this legal drama unfolds, it’ll be interesting to see how deep the rabbit hole goes.