Monthly op risk losses: China bond fraud implicates leading banks
Breakdown of top five loss events. Data by ORX News
The largest loss this month relates to a Ponzi scheme. On December 20, 2017, the US Securities and Exchange Commission charged the Woodbridge Group of Companies and its founder Robert Shapiro with running a $1.22 billion Ponzi scheme affecting 8,400 investors nationwide.
According to the regulator, Shapiro and Woodbridge told investors they could make returns of between 5% and 10% through his business model in which he made short-term loans to third-party companies for 11% to 15% interest.
In
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