The Subpoenas Are Coming! The Subpoenas Are Coming!
Inspectors general may soon have broader investigative power. Congress is considering enacting the Inspector General Authority Improvement Act of 2010, which would give inspectors general the authority to subpoena nonfederally employed witnesses under some circumstances.
A Sentence by Any Other Judge Would Be as Short (or Long)
The DOJ asked the U.S. Sentencing Commission to investigate the propensity of judges to ignore the sentencing guidelines, especially in the white-collar crime area. It noted, for example, that some defendants involved in a $500 million fraud received less than four years' incarceration while others involved in a $40 million fraud received a 25-year sentence.
The Wire (Fraud)
The wire-fraud statute requires the government to prove only that the use of the wires was "reasonably foreseeable," according to the Tenth Circuit. Therefore, any transaction that might involve the use of the Internet would fall within the statute's purview.
When the Hedge Fails
Hedge-fund managers can become fiduciaries of their investors, opening them up to prosecution under the antifraud provisions of the federal Investment Advisers Act, 15 U.S.C. § 80b-6. Normally, the fiduciary duty runs to the fund, but the Sixth Circuit has held that, in some circumstances, the manager's fiduciary duty can run directly to the investors.
Money in Motion
Money-laundering convictions may be harder to come by, thanks to a Sixth Circuit holding that under 18 U.S.C § 1956(a)(2)(B)(i), the government must prove that the "animating purpose" of the transaction was to conceal the fraudulent nature or source of the funds.
To Catch a Thief . . . Ten Years Later
No actual loss to a financial institution is required to double the otherwise applicable five-year statute of limitations for criminal prosecution for mail and wire fraud, according to the Tenth Circuit. A "new or increased risk of loss" to the financial institution because of the scheme is sufficient to invoke the ten-year statute of limitations applicable to a fraudulent scheme that "affects" a financial institution.
A DPA Ain't Immunity
Criminal defendants can introduce evidence that they rejected an offer of immunity to show consciousness of innocence, but not evidence that they rejected an offer of a deferred-prosecution agreement, says one court of appeals.
Splitting Hairs Too Finely
A grand-jury witness can't be too cute when answering the government's questions. The Ninth Circuit held that a witness can't be convicted of perjury for giving a misleading but "literally true" answer. But if the jury could reasonably conclude that the witness and the government had the same basic understanding during the line of questioning, such that the "literal truth" is just an after-the-fact lawyerly contrivance, a perjury conviction will stand.
On March 26, D.C. Counsel Steven Cash will be featured on live webinar, "When Congress Comes Calling: Unique Rights and Wrongs for Oversight and Investigation Targets," presented by the Washington Legal Foundation (WLF).
Day Pitney Newsletter
Dan Wenner and Stan Twardy authored an article, "Forfeiture and the Eighth Amendment," published in the January/February issue of GPSolo Magazine, a publication of the American Bar Association.
Steven Cash authored an analysis article, "What to Do When a Client Receives a Subpoena From Congress," published by the New York Law Journal.
On February 5, partners Dan Wenner and Jed Davis will present a webinar, "Cybersecurity Incident Report: Applying Reason And Rigor To Control Chaos," produced by PLAC (formerly the Product Liability Advisory Council).
Jed Davis was quoted in an article, "Manager Data in Peril from Growing Cyber Threats," published by FundFire, a Financial Times news service for professionals working in the high net worth and institutional investment management industry.
Stan Twardy appeared live on the RNN-TV program "Richard French Live," a nightly news talk show.
Washington, D.C.-based counsel Steven Cash was quoted in an article, "Five Tantalizing Questions About Mueller's Investigation," published by The Hill.
Washington, D.C.-based counsel Steven Cash was quoted in an article, "Rule Change Sharpens Dem Investigations into Trump," published by The Hill.