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The US Securities regulator offered $8.25-million to a whistleblower who helped prove false accounting practices by Deutsche Bank. The person denied the payment. Eric Ben-Artzi, a former bank risk officer, penned an article in the Financial Times stating that the $55-million penalty by the US Securities and Exchange Commission penalty should have been paid by executives at Deutsche instead.

The SEC’s head of enforcement Andrew Ceresney stated that all charges brought against the bank were supported fully by proving and the law. He added that all charges were unanimously approved during the investigation. In 2015, Deutsche Bank agreed to pay a settlement of $55-million to the SEC due to their inadequate accounting controls that were related to their valuation practices regarding complex derivatives. The accounting controls allowed the company to run wild with their payouts. The bank, however never admitted or denied any of the allegations connected to the trade of LSS (leveraged super senior) from 2008 and 2009. In fact, no statement was made at all on the situation.

Matthew Simpson, a second whistleblower was awarded the other half of the payout. Deutsche executives were not punished due to the revolving door where executives moved into different positions regularly. Ben-Artzi also stated that Deutsche lawyer Robert Khuzami should be looked at closely. Khuzami was unavailable for comment.

Ben-Artzi requested that his portion of the awarded money to be distributed to Deutsche Bank and its many stakeholders. He also added that the money should be taken from the large pool fund paid out in bonuses to executives. It is difficult to say who was actually responsible—whether it was a department, stable group of people or individuals. Both Ben-Artzi and his ex-wife are still able to claim the funds in his award.