Defendant Name: Deutsche Bank Trust Company Americas

Defendant Type: Subsidiary of Public Company
Public Company Parent: Deutsche Bank AG

Document Reference: 2018-138_3-18605

Document Details

Legal Case Name In the Matter of Deutsche Bank Trust Company Americas
Document Name Deutsche Bank to Pay Nearly $75 Million for Improper Handling of ADRs
Document Date 20-Jul-2018
Document Format Administrative Proceeding
File Number 3-18605
Allegation Type Broker Dealer
Document Summary According to the SEC, "The case stems from a continuing SEC investigation into abuses involving pre-released ADRs. In proceedings against Deutsche Bank Trust Co. Americas (DBTCA), a depositary bank, and Deutsche Bank Securities Inc. (DBSI), a registered broker-dealer, the SEC found that their misconduct allowed pre-released ADRs to be used for abusive practices, including inappropriate short selling and inappropriate profiting around dividend payouts."

Disgorgement & Penalty Information

Resolutions
Cooperation Before the Resolution
Remedial Acts or Efforts Before the Resolution
Monetary Penalties:

Disgorgement

Individual:     $44,400,000.00 Shared:    

Civil Penalty

Individual:     $22,200,000.00 Shared:    

Pre-Judgment Interest

Individual:     $6,600,000.00 Shared:    

Related Documents:

33-10523 20-Jul-2018 Administrative Proceeding
Order Instituting Cease-and-Desist Proceedings, Pursuant to Section 8A of the Securities Act of 1933, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
According to the SEC, "These proceedings arise out of DBTCA's improper practices involving the pre-release of American Depositary Receipts ("ADRs") . . . Contrary to how pre-release transactions were supposed to work, DBTCA at times pre-released ADRs to Pre-Release Brokers in circumstances where DBTCA was negligent with respect to whether the Pre-Release Brokers, or the parties on whose behalf the pre-released ADRs were being obtained, actually beneficially owned the corresponding number of ordinary shares, as they represented to DBTCA in their Pre-Release Agreements. The result of this conduct was the issuance of ADRs that in many instances were not backed by ordinary shares as required by the ADR facility."