BNP Parabas, a French bank, has been sued under the False Claims Act for allegedly knowingly aiding a grain exporting and importing company in circumventing Department of Agriculture regulations.

Under the Department of Agriculture’s Supplier Guarantee Program, U.S. exporters are guaranteed payment for shipments of commodities to foreign importers.  However, if both the exporter and importer are owned by the same individual or company, the exporter is ineligible for the guarantee.

BNP allegedly aided a foreign businessman in concealing the fact that he owned both the U.S. grain exporting company and the Mexican grain importing company.  When the importer defaulted on its payments, BNP allegedly helped the exporter submit claims for payment to the Supplier Guarantee Program, totaling at least $78 million.

The former trade finance manager, Jovenal M. Cruz, and the former Vice President of BNP have also been charged.

Read the entire article, “BNP, Foreclosure Suit, RBS, Barclays, AT&T in Court News”