Three news to start your week: October 28
Peru's ex-president Toledo gets more than 20 years in Odebretch scandal
(NPR)
Former President of Peru, Alejandro Toledo, was sentenced to 20 years and six months in prison due to his involvement in a corruption scandal linked to the Brazilian construction giant Odebrecht, which has become infamous for bribing officials across Latin America. Authorities allege that Toledo accepted $35 million in bribes from Odebrecht in return for facilitating the construction of a highway in Peru.
The National Superior Court of Specialized Criminal Justice in Lima delivered this sentence after a protracted legal battle, which included contentious proceedings regarding Toledo's extradition from the United States, where he had sought refuge.
Judge Inés Rojas emphasized that Toledo betrayed the trust of the Peruvian people who elected him as their president. She pointed out that as a leader, he was entrusted with managing public finances and safeguarding state resources. Instead of fulfilling this obligation, Toledo "defrauded the state." The judge further criticized him for failing to act with the neutrality required of his position, ultimately allowing for the abuse and exploitation of public assets.
OpenAI Hires Former Uber Executive as Chief Compliance Officer
(Bloomberg)
OpenAI has appointed Scott Schools, a former executive at Uber Technologies Inc., as its inaugural chief compliance officer, enhancing its strategy to navigate the evolving global regulations surrounding artificial intelligence.
Previously, Schools held the chief ethics and compliance officer position at Uber, a technology firm that has faced its own regulatory challenges and intermittently clashed with lawmakers. His background includes being an associate deputy attorney general at the U.S. Justice Department.
This appointment comes at a crucial time, as regulators across the Atlantic contemplate policies for advanced AI models developed by OpenAI and others. Moreover, this move signifies a significant expansion of OpenAI's leadership team following high-profile exits.
FinCEN Fines a California Casino Over Anti-Money-Laundering Violations
(The Wall Street Journal)
The Financial Crimes Enforcement Network (FinCEN) has fined the Lake Elsinore Hotel and Casino in California substantially for egregious violations of anti-money laundering regulations. This is the first enforcement action of its kind against a casino in six years.
The casino has agreed to pay approximately $900,000 to resolve accusations that it neglected to adhere to the Bank Secrecy Act for over four and a half years. These infractions include failing to establish and sustain an effective anti-money-laundering program and not filing necessary currency transaction reports and suspicious activity reports.
This significant penalty underscores the necessity for compliance as new casinos emerge nationwide. According to the American Gaming Association, traditional gaming revenue reached $33.19 billion by August this year, reflecting a 0.5% increase compared to last year's timeframe.
FinCEN emphasizes that this enforcement action serves as a crucial reminder to all entities under its supervision, regardless of their size, about their legal responsibilities.
