Apparently, businesses have been forced to pay millions, and occasionally billions as criminal Fine in history. People who have been proven responsible for environmental catastrophes, or the loss of life have since been forced to make reparations totaling billions of dollars. Now, let us talk about a few of the Largest Criminal Fine in History.
A few of the Largest Criminal Fine in History
Here are some of the Largest Criminal Fine in History:
-
- TEPCO – £330 billion ($450 billion)
In 2011, after the Fukushima nuclear disaster, critics accused a lack of preparation for the situation and a confusing government response. Based on an independent assessment ordered by the Japanese government, Fukushima was a profoundly man-made tragedy. And the energy company was held accountable for failing to follow safety regulations and create emergency plans.
In 2019, the only criminal case resulting from the tragedy was dismissed by a Japanese court that acquitted three former Tepco officials of carelessness. But, the tens of thousands of people who had been evicted from their own home due to radiation leaks filed compensation claims with the business totaling 5 trillion yen, or almost £330 billion.
You have to note that any crime committed by an employee in the course of his work for the firm’s profit is referred to as a corporate crime in corporate law. In TEPCO’s example, the offence was putting residents’ lives in danger. Corporate offences which could incur civil and criminal fines include the following:
-
- Environmental law violations.
- Default on a contract
- Secret trading
- Bribery
- False statements
- Embezzlement.
-
- Bank of America – $16.65 billion (£11 billion)
After the financial crisis of 2008, the new regulatory agencies were established. The banks were subject to more scrutiny for fraudulent business practices. Subprime loans that banks made to the borrowers who were very unlikely to pay them back, played a crucial role in the crisis. At the time, President Barack Obama claimed that the mortgage finance methods which caused the financial crisis were immoral, unethical, and dangerous, however not necessarily criminal, making it challenging to penalize crucial figures, especially in the subprime crisis.
But, Bank of America paid a hefty $16.65 billion or £11 billion in damages in the year 2014 for its role, JP Morgan paid $13 billion or £8 billion to settle similar claims, and BNP Paribas paid $8.9 billion or £6.5 billion for breaking United States sanctions against Sudan, Cuba and Iran. Also, significant penalties have been imposed for activity spanning from money laundering to rate manipulation, retail abuses, and tax evasion on Citigroup, Goldman Sachs, Royal Bank of Scotland, Credit Suisse, Wells Fargo, and HSBC holdings.
-
- B.P. – £47 billion ($64 billion)
In 2010, in history, the Deepwater Horizon Oil Leak, regarded as the most significant marine oil disaster, caused a big oil spill in the Gulf of Mexico. It is trusted to have covered an enormous 60,000 square miles just off the Texas coast and spilled into the sea for 4 months. Used skimmer ships, controlled burns, floating booms, and 7,000 square miles of oil dispersant were a primary response to safeguard the beaches, wetlands, and estuaries from the spreading oil.
Also, the fishing and tourism industries suffered exceptional damage, making this the worst industrial environmental disaster in United States history, besides negative repercussions from the response and cleanup efforts. For your information, in 2016, the oil corporation B.P. reached a £15 billion settlement with the United States Department of Justice. It is estimated that the business eventually paid out more than £47 billion in compensation.
-
- V.W. affected by “Diesel gate” ($34.9 billion)
Volkswagen’s emissions scandal, occasionally known as Diesel gate, has cost the automaker $34.9 billion in criminal and civil fines. In 2014, investigations revealed that V.W. deliberately inserted defective hardware and software into their own cars. The defeat devices were able to distinguish between when the car was being tested and when a regular user was operating it. The gadgets could reduce emissions during testing. According to the E.P.A., the Clean Air Act. U.S, V.W. breach.
For your information, the Clean Air Act, or 42 U.S.C. 7402 et seq, is a body of federal legislation which controls factory and automobile air pollutants. The legislation prohibits selling products which do not adhere to United States emission regulations. According to the E.P.A., V.W. sold approximately 590,000 vehicles with defeat devices installed. Volkswagen Tuareg, Passat, Audi, Golf SportWagen, Jetta SportWagen, and VW Beetle are among the available models.
-
- Facebook ($5 billion)
For violating users’ privacy, the Federal Trade Commission has already ordered Facebook to pay $5 billion in fines. Apparently, it is the biggest fine ever levied against a firm in the United States for violating privacy. Prior to Facebook, in history, who paid the largest Criminal Fine are British Airways that have to pay $230 million, Uber paid $148 million and Equifax paid $2785 million for privacy violations.
Politico and other outlets claim that Facebook overpaid the fine for protecting its owner, Mark Zuckerberg, from legal responsibility. The F.T.C. said that Facebook failed to defend the users against Cambridge Analytica, a corporation which collects user data. Cambridge Analytica utilized the collected data to target Donald Trump’s supporters. In essence, F.T.C. said that Facebook:
-
- They shared user information with outside programs.
- They repeatedly misrepresented the degree to which platform the users can control their own data in contravention of the F.T.C. act and the F.T.C.’s 2012 ruling. Facebook is accused of using mobile phone numbers of users for advertising.
- Misinformed users were about how Facebook uses facial recognition technologies.
-
- Pfizer (£1.7 billion)
Pfizer, who paid the largest Criminal Fine in History is £1.7 billion and is one of the largest fraud settlements in United States history for making fraudulent promises about the now-withdrawn painkiller Bextra.
In 2004, Bextra was taken off the market. In the year 2009, Pfizer Inc. admitted guilt to the accusation. The United States Department of Justice claims that the company’s sales staff directly marketed Bextra to doctors for unauthorized uses and dosages. At the same time, the marketing team pushed the medicine for surgical pain, acute pain, and other unapproved purposes.
A bookworm and researcher especially related to law and citizenship education. I spend time every day in front of the internet and the campus library.
