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The SDNY Whistleblower Pilot Program Within the Framework of Corporate Criminal Enforcement

The United States Attorney’s Office for the Southern District of New York recently announced a policy—called the “SDNY Whistleblower Pilot Program”—that seeks to encourage individuals to voluntarily disclose financial crimes in which they themselves participated. First unveiled in January 2024 and then revised this month, the policy sets forth the circumstances under which SDNY says … Continue Reading

Navigating Shifting Legal Landscapes: Implications of Deputy Attorney General Lisa Monaco’s Address to Oxford University on Artificial Intelligence

Deputy Attorney General Lisa Monaco’s (“Monaco”) recent remarks at Oxford University shed light on the evolving intersection of artificial intelligence (“AI”) and the criminal enforcement landscape and its profound implications for the United States Department of Justice and beyond. As the Chief Operating Officer of the Department of Justice, Monaco’s insights underscore the critical importance … Continue Reading

Managing and Reporting Third-Party Cybersecurity Incidents Under the New SEC Cyber Risk Regulations

The rules on reporting cybersecurity risks and incidents pose many challenges for companies. Those challenges can be even more difficult when the cybersecurity incident affects third-party systems. With no exceptions for third-party cybersecurity incidents under the new cybersecurity reporting regulations, companies should take proactive steps to assess and respond appropriately to third-party cybersecurity incidents. The … Continue Reading

Webinar: The New Foreign Extortion Prevention Act – What It Means for US Companies

Please join us on Tuesday, January 30 for a discussion about “the most consequential anti-foreign-bribery law passed in almost 50 years”: the Foreign Extortion Prevention Act (FEPA). FEPA allows the DOJ to prosecute foreign officials who demand or accept a bribe from a U.S. citizen or company. Our seasoned team of three former Department of … Continue Reading

FEPA: the New Tool in the DOJ’s Fight Against Corruption

On December 22, 2023, President Biden signed into law the Foreign Extortion Prevention Act (hereinafter “FEPA” or the “Act”) which was passed by the US Congress as part of the Fiscal Year 2024 National Defense Authorization Act.  The Act aligns with the current administration’s national security agenda in that it broadens the scope and reach … Continue Reading

U.S. Sanctions Review: A Recap of OFAC’s Recent Enforcement Actions (Second Half 2023)

The second half of 2023 saw eight enforcement actions from the Department of the Treasury’s Office of Foreign Assets Control (“OFAC”).  These actions reflect a range of penalties, industries, sanctions programs, conduct, and lessons learned.  Below are some highlights from OFAC’s enforcement releases and settlement agreements. Penalties OFAC imposed a total of $984,851,289.90 in penalties … Continue Reading

Noteworthy Trends in French White Collar Crime

France’s Sapin II Law was created in 2016 to address corporate corruption and implement antibribery measures. The legislation took effect in 2017, marking a significant shift in the country’s regulatory compliance landscape. The law, which tracks closely with similar laws in the US, UK, and other EU countries, requires large companies [1] to implement a … Continue Reading

Federal Courts Continue to Grapple with Causation in Anti-Kickback-Based False Claims Act Cases

Courts around the country continue to disagree on the causation standard to be applied in False Claims Act cases based on alleged Anti-Kickback Statute violations.  Two recent federal district court decisions out of the District of Massachusetts add to differing conclusions on what the causation standard should be, i.e., “but-for,” “exposure,” or some other, less … Continue Reading

Recent Discover Lawsuits Provide Compliance Lessons

In September, a class action lawsuit (Mannacio v. Discover Financial Services, et al., No. 23-cv-06788 (N.D. Ill.)) was filed against Discover Financial Services (“Discover”) alleging Discover and certain current and/or former executives violated the Securities Exchange Act of 1934. Specifically, the class action complaint alleged that the defendants made false and/or misleading statements and/or failed … Continue Reading

Yet Another False Claims Act Salvo (now #4) in DOJ’s “Civil Cyber-Fraud Initiative”

We have been tracking and reporting on the U.S. Department of Justice’s Civil Cyber-Fraud Initiative (“CCF Initiative”), which U.S. Deputy Attorney General Lisa O. Monaco announced in October 2021. The CCF Initiative employs the powerful False Claims Act (“FCA”) in an effort to “hold accountable entities or individuals that put U.S. information or systems at … Continue Reading

DOJ Extends Self-Reporting and Cooperation Incentives To M&A Transactions

Under a new safe harbor policy announced by Deputy Attorney General Lisa Monaco on October 4, 2023, an acquiring company that discloses potential wrongdoing at a company being acquired within six months of the deal closing date—and fully cooperates and fixes the underlying problems within a year of closing—can presume it will not be criminally … Continue Reading

Less than Three Months Until FinCEN’s Beneficial Ownership Reporting Rule Takes Effect: Recent Corporate Transparency Act Developments

FinCEN’s beneficial ownership reporting rule takes effect on January 1, 2024.  This rule requires certain entities to file with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) reports that identify two categories of individuals: the beneficial owners of the entity, and individuals who have filed an application with specified governmental authorities to … Continue Reading

FinCEN Penalizes Puerto Rican Bank for BSA Violations in First Enforcement Action Involving the “Gap Rule”

On September 15, 2023, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) announced a $15 million civil money penalty against a Puerto Rican International Banking Entity (“IBE”), Bancrédito International Bank and Trust Corporation (“Bancrédito” or “the Bank”).  The public consent order details the Bank’s multiple violations of the Bank Secrecy Act (“BSA”), … Continue Reading

How Independent, Internal Investigations and Culture Assessments Can Enhance Sports Programs

Following allegations and complaints of hazing in its football program, Northwestern University retained a former United States Attorney General to conduct an internal review of the allegations and provide an analysis and risk assessment into the Athletic Department’s culture. While the reason for the review is unfortunate, this evaluation offers a critical tool for not … Continue Reading

DOJ’s Focus on Pandemic Relief Fraud Continues

The Department of Justice made a major announcement last week that demonstrates that it is serious about finding those who defraud various COVID-19 relief programs and holding them accountable to the fullest extent of the law. Over the course of the last three months alone, working in concert with numerous law enforcement partners, including the … Continue Reading

Live Event:  Avoiding Litigation and Navigating Regulatory Challenges Amid Growing Privacy, Cybersecurity and Artificial Intelligence Scrutiny

Join subject matter experts across policy, litigation, and regulation for an engaging discussion around privacy, cybersecurity, and AI.  This live event will be in our Washington DC office and will include perspectives from in-house leaders, a former FBI agent, an incident response forensic expert, world-class public policy experts, and our privacy and cybersecurity professionals.  The … Continue Reading

Supreme Court Restricts the Scope of the Aggravated Identity Fraud Statute

Earlier this month, the Supreme Court of the United States decided Dubin v. United States, No. 22-10, 2023 WL 3872518, at *1 (U.S. June 8, 2023), in favor of the defendant. Justice Sonia Sotomayor wrote the opinion for the Court, which held that 18 U.S.C. § 1028A(a)(1), aggravated identity theft, is violated only when the … Continue Reading

Supreme Court Clarifies Knowledge Requirement for False Claims Act Liability

Earlier this year, we previewed two significant False Claims Act (FCA) cases before the U.S. Supreme Court, United States ex. rel. Schutte v. SuperValu, Inc., No. 21-1326 (“SuperValu”), and United States ex. Rel. Proctor v. Safeway, Inc., No. 22-111 (“Safeway”).  The FCA provides that “any person who knowingly presents, or causes to be presented, a … Continue Reading

Can a Private Person Defraud the Public of Honest Services?

Last month in Percoco v. United States (U.S. May 11, 2023), the Supreme Court reversed the petitioner’s judgment of conviction for conspiracy to commit honest-services wire fraud for allegedly accepting $70,000 from a developer in return for asking a state agency to drop its labor peace agreement requirement. Joseph Percoco had previously served as Executive … Continue Reading

Sports Betting and the NCAA: What You Need to Know

“If you put something at risk (such as cash, entry fee, dinner or other tangible item) on any amateur and/or professional sporting event with a chance to win something in return, you violate NCAA sports wagering rules.”[1] Once the Supreme Court ruled unconstitutional the federal law[2] prohibiting sports betting in Murphy v. Nat’l Collegiate Athletic … Continue Reading

Investigations Involving Alleged Redlining

Perhaps the signature initiative of the Department of Justice’s Civil Rights Division under the current Administration has been its Combatting Redlining Initiative. By “redlining,” the Department means that a lender has avoided providing access to home mortgage loans to homeowners and prospective homeowners in majority-minority census tracts, in violation of the Fair Housing and Equal … Continue Reading

Rule 10b5-1 Application and Enforcement

On March 1, 2023, the Department of Justice (“DOJ”) and the Securities and Exchange Commission (“SEC”) demonstrated continued interest in investigating insider trading by company executives who possess material non-public information when they unsealed an indictment and filed a civil complaint, respectively, in the Central District of California. Though a Rule 10b5-1 plan—an investment device … Continue Reading

Women’s Sports on the Rise

The 2023 NCAA Division I Women’s Basketball national championship averaged 9.9 million viewers, becoming the most-watched women’s college basketball game and ESPN platforms’ most-viewed college basketball game (men’s or women’s) on record, and it was not even playing in a prime-time slot. This shows a tidal shift in the interest and growing opportunity in women’s … Continue Reading

Healthcare Companies and Companies Doing Business with the US Government – Supreme Court Appears Likely to Clarify False Claims Act (FCA) Knowledge Requirements

The Supreme Court recently heard oral argument in the appeal of two False Claims Act (FCA) cases from the Seventh Circuit that called into question the level of intent, or scienter, required to establish corporate liability under the FCA for “knowingly” overbilling the government for goods or services.  The Court’s eventual decision may have widespread … Continue Reading
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