FCPA Coming to the Front of the Line
DOJ officials have increased the size of the fraud section's Foreign Corrupt Practices Act ("FCPA") enforcement unit. DOJ officials expect the fraud section to grow by as much as 50 percent over the next few years, with an increased focus on FCPA enforcement, as in a recent action against Daimler that resulted in the appointment of a corporate monitor. This increase is coupled with a new trend among FCPA investigations: increased cooperation with foreign officials. U.S. firms are struggling to comply with the complex provisions of the FCPA as it stands, but now they face increased risk that the foreign officials with whom they work will cooperate in the U.S. investigation.
Fraud Prevention Comes to Main StreetThere is a new tool for fraud prevention: StopFraud.gov, which is a website established by the Federal Financial Fraud Taskforce. In a press release, the DOJ described the site as "a one-stop shop for the American people to learn how to protect themselves from fraud and to report it wherever - and however - it occurs." Only time will tell whether this new access point to report purported fraud to the Taskforce will enhance its investigation efforts or merely distract it from investigating serious frauds.
Six Things You Need to Know About the New SEC Enforcement RulesEarlier this year, the SEC's Division of Enforcement announced that it has formalized its enforcement procedures by outlining clear paths to follow during the course of an investigation. The Division outlined that it would use proffer agreements, cooperation agreements, deferred prosecution agreements and nonprosecution agreements to garner cooperation, reward cooperation and resolve cases. Click here to see the six things you need to know about the new rules. For more about the SEC's cooperation initiative, click here.
Why Hire Lawyers to Conduct Internal Investigations? It's Privileged.The U.S. Court of Appeals for the Seventh Circuit has held that when an internal investigation is in the cards, hiring lawyers to both investigate and give legal advice can shield from disclosure the investigators' notes and report, due to the combination of attorney-client and work-product privileges. For a copy of the opinion, click here.
More Money, More Problems? DOJ Seeks More Money to Combat Financial Crimes.The DOJ has made clear that prosecuting financial crimes is one of its main targets. In its proposed fiscal year 2011 budget, the DOJ sought an additional $96.8 million for its economic fraud enforcement, which is a 23 percent increase over its 2010 budget. In a similar move to increase its focus on financial frauds, the U.S. Attorney's Office for the Southern District of New York has announced the formation of a new Civil Frauds Unit to combat large-scale financial frauds.
Day Pitney Newsletter
Mark Salah Morgan authored an article, "Strengthening Egypt's IP Laws Could Help Fight Brain Drain," which was published in Law360.
Day Pitney Newsletter
Dina Kapur Sanna and Carl A. Merino co-authored an article, "Long Arm of the Law: The Risk to U.S. Practitioners of Prosecution for Facilitating Foreign Tax Offenses," in the June 2017 issue of Trusts & Estates.
On June 15, Dina Kapur Sanna and Carl A. Merino moderated a discussion panel at the Cambridge International Wealth Advisors Forum 2.0 held in Lisbon about the role of wealth advisors as "gatekeepers" to the financial system and measures being implemented by different jurisdictions to combat money laundering and tax evasion, including obligations imposed on lawyers and other advisors.
Adam Grant was quoted in an article, "Content Requirements in Angola Cost Halliburton More Than $29 Million in SEC Disgorgement and Penalties," published in The Anti-Corruption Report.
Jed Davis was quoted in an article, "'Click Fraud' Trial To Test Reach Of Feds' Cybercrime Powers," in Law360.
Steven Cash was quoted in a pair of articles, "Trump-Mueller tensions escalate," published in The Hill; and "Jeff Sessions' appointment of special prosecutor bites Trump," published in The Washington Times.
Eric Fader was quoted in an article, "Nurses Hit Hardest by Medicare and Medicaid Exclusions," published in Bloomberg BNA's Health Care Fraud Report.
Stan Twardy, Elizabeth Latif and Eric Sussman were successful in having a federal judge dismiss a False Claims Act lawsuit against our client Sikorsky Aircraft Corp.