In the prior post, I cited three significant risk areas for False Claims Act (“FCA”) risks and trade compliance: (1) Valuation; (2) Misclassification and (3) Country of Origin. Barco Uniforms On April 18, 2025, the United States filed a complaint against Barco Uniforms Inc. (“Barco”), Kenny Chan, David Chan, and companies operated and controlled by the Chans, alleging that they violated the False Claims Act...
As in every Administration, the Trump Department of Justice has made clear its enforcement priorities — government fraud, immigration and national security to include tariff and trade violations. DOJ fully recognizes the power of the False Claims Act as a powerful enforcement tool when it comes to trade and tariff enforcement. Add to the mix, the well-established whistleblower or qui tam relator program and you...
Never underestimate the creativity and ability of federal prosecutors to apply federal criminal laws to address “new” crimes or new enforcement programs. Corporate leaders and compliance officials are making a serious mistake when they confuse a “pause” in FCPA enforcement to mean a reduction in federal criminal corporate prosecutions. This Administration has no problem in taking aggressive positions in the legal arena and I would...
DOJ’s new Corporate Enforcement Program is designed to bring certainty to the voluntary disclosure and cooperation process. DOJ’s intent is clear — voluntary disclosure is likely to lead to a declination, reduced penalties and the absence of a corporate monitor. DOJ’s changes are another attempt to spur voluntary disclosures. Over the last ten years, DOJ has step-by-step sought to increase the benefits of voluntary disclosure. ...
For years, companies have dreaded DOJ’s potential appointment of a corporate monitorship as part of a criminal resolution. Companies have often complained about the experience, citing burdensome and sometimes unnecessary changes being required as part of a corporate monitorship. On the other hand, some companies who have completed a monitorship will acknowledge that the corporate monitor helped the company establish effective ethics and compliance program...
With each new Administration comes a new approach or emphasis on certain enforcement priorities. The Trump Administration is marking its territory and doing so to underscore its priorities. In a recent speech, the Assistant Attorney General Matthew R. Galeotti for the Criminal Division announced DOJ’s new approach. To reinforce this new approach, DOJ issued a new memorandum, Focus, Fairness and Efficiency in the Fight Against...
Call me an optimist — it is a much better alternative than being a pessimist or a “realist” with a pessimistic bent. So, let’s start by acknowledging the obvious. Businesses are operating in a volatile environment. The Trump Administration is moving fast, sometimes changing strategies from one day to another. Businesses clamor for stability. This is particularly important when it comes to trade policy and...
On April 30, 2025, the U.S. Department of Justice’s National Security Division (“NSD”) issued a formal declination of prosecution to the Universities Space Research Association (“USRA”) following the organization’s timely and fulsome voluntary self-disclosure of export control violations perpetrated by a former employee. The declination, conveyed through a detailed letter signed by Principal Deputy Assistant Attorney General David Newman, marks one of the clearest applications...
LRN’s Program Effectiveness Report is an important annual event. LRN consistently provides important trend, benchmarking and program measurements. As an important leader in this area, LRN never pulls any punches. This year’s report is nothing different. In reporting on a survey of 1500 global ethics and compliance professionals, LRN reports on important trends and measurements. This year’s key findings: High-impact programs are more adept at...
CPB’s administrative enforcement program is robust and increasing, especially with the importance of trade and tariff enforcement. There are a lot of “ins and outs” (Big Lewbowski Here) to the administrative process which can make it appear overly complex. Case Initiation: CBP initiates investigations from a variety of sources including routine audits, cargo examinations, e-allegations, and referrals. The import process, for obvious reasons, includes a...
