Author: Michael Volkov

19 Aug, 2024

Episode 334 — SEC Suffers Dismissal of Claims in Fraud Case Against Solarwinds

A New York federal district judge handed down a significant decision dismissing much of the SEC’s securities fraud enforcement action against SolarWinds arising from its claims relating to SolarWinds’ cybersecurity policies, and disclosure of a significant cyberattack against the SolarWinds’ network. In an unprecedented case, the SEC alleged that SolarWinds, which went public in 2018, mislead the public as to the effectiveness of its cybersecurity...

General

14 Aug, 2024

Quarterly Trade Compliance Update – July 2024

Each quarter, we send many of our clients a quarterly trade compliance update, highlighting important developments over the last few months and summarizing key points for important sanctions programs. Click here to download the quarterly update for July. Below is a summary of events this past quarter: About the document: This handy one-pager is designed to be used by our clients to provide a quick...

Podcasts

11 Aug, 2024

Episode 333 — Boeing Plea Agreement in 737 MAX Safety Case

The Boeing 737 MAX case took another dramatic turn. On July 24, 2024, the Department of Justice filed with the United States District Court for the Northern District of Texas a proposed plea agreement with Boeing. The plea agreement, which has been filed under Federal Rule Criminal Procedure 11(c)(1)(C), requires the Court to approve and accept the deal. The Court can reject the plea deal...

Podcasts

4 Aug, 2024

Episode 332 — Deep Dive into SEC’s Internal Controls and Cybersecurity Settlement with R&R Donnelly

In a significant expansion of internal controls enforcement, the SEC announced a $2.1 million settlement with R.R. Donnelley & Sons Co. (“RRD”) for its handling of a 2021 ransomware attack and resulting disclosure failures. The settlement represents the SEC’s first application of its internal controls enforcement authority to include cybersecurity policies and procedures. The SEC’s interpretation represents a significant expansion of its enforcement authority. In...

General

2 Aug, 2024

Gentiva Pays $19.4 Million for False Claims Act Violations Involving Hospice Care

Gentiva, the renamed former Kindred at Home, agreed to pay $19.4 million to resolve claims that its predecessor company, Kindred at Home and related companies, violated the False Claims Act by retaining overpayments for hospice services provided to patients. Gentiva’s hospice operations, based in Atlanta, include various organizations that previously operated hospice locations under various brand names including Avalon, Kindred, SouthernCare and SouthernCare New Beacon....

General

31 Jul, 2024

Boeing’s Failure to Integrate Compliance Anti-Fraud Controls with Quality and Safety Functions (Part III of III)

Boeing’s Plea Agreement includes two Separate Factual Statements — the January 7, 2021 DPA, which is discussed in a prior blog post, and a factual outline of Boeing’s breach of the original DPA, resulting in the current Plea Agreement. The most recent Factual Statement covers Boeing’s DPA breach for failure to implement an effective ethics and compliance program that is “designed, implemented, and enforced to...

General

30 Jul, 2024

Deep Dive into Proposed Boeing Plea Agreement (Part II of III)

DOJ and Boeing have entered into a proposed plea agreement that will require judicial scrutiny and determinations of the public interest and the victims’ rights under the Crime Victims’ Rights Act, 18 U.S.C. § 3771 [“CVRA”]. The prosed Plea Agreement includes several interesting features that address appointment of an independent compliance monitor, and Boeing’s consideration of the impact of Boeing’s malfeasance on the victims’ families....

General

29 Jul, 2024

DOJ and Boeing Propose Criminal Plea Agreement — Boeing to Plead Guilty to Felony and Pay $243 Million Penalty (Part I of III)

Podcasts

29 Jul, 2024

Episode 331 — NAVEX State of Risk and Compliance

NAVEX delivers quality studies and important insights on ethics and compliance topics. In its 2024 State of Risk & Compliance, NAVEX provides a comprehensive report on current trends and practices involving risk and compliance management. The Report reflects the survey results from over 1,000 respondents global who influence or manage their organization’s risk and compliance programs. Over half of the respondents came from the United...

General

24 Jul, 2024

DaVita Pays $34 Million to Settle Kickback Violations

DaVita is a regular target of government enforcement actions involving fraud and illegal kickbacks. It has an extensive history of violations and settlements. here is a list of some of the highlights:: In its most recent settlement, DaVita paid just over $34 million to resolve claims that it violated the Anti-Kickback Statute (“AKS”) by paying kickbacks to induce referrals to DaVita Rx, a former subsidiary...