Category: General

Israeli Freight Forwarder Sentenced to Two Years in Prison for Violating U.S. Export Controls on Aircraft Components to Russia

Israeli Freight Forwarder Sentenced to Two Years in Prison for Violating U.S. Export Controls on Aircraft Components to Russia

The recent sentencing of Israeli freight forwarder Gal Haimovich to two years in federal prison for violations of U.S. export controls serves as a striking example of the aggressive enforcement posture adopted by U.S. authorities in response to the circumvention of trade restrictions on Russia. Prosecuted in the United States District Court for the Southern District of Florida, the case underscores the severity with which...

Quadrant Magnetics Executives Plead Guilty to ITAR Violations for Transmitting Controlled Technical Data to China

Quadrant Magnetics Executives Plead Guilty to ITAR Violations for Transmitting Controlled Technical Data to China

Heightened federal scrutiny of unauthorized technology transfers to foreign entities has once again resulted in high-profile criminal convictions, as two senior executives of Quadrant Magnetics, a Kentucky-based manufacturer specializing in rare earth magnetics, have pleaded guilty in federal district court to charges stemming from the unlawful transmission of ITAR-controlled technical data to an affiliate in China. The case, which underscores the heightened scrutiny of corporate...

Episode 359 — Review of the EU Whistleblowing Directive with Alex Cotoia and Daniela Melendez

Episode 359 — Review of the EU Whistleblowing Directive with Alex Cotoia and Daniela Melendez

This week, we bring you a replay of one of our most impactful podcasts from last year, featuring Alex Cotoia and Daniela Melendez. Listen in as we discuss the EU Whistleblower Directive of October 2019. We’ll return next week with one of our regular updates. Directive 2019/1937 of the European Parliament and Council dated 23 October 2019 on the “protection of persons who report breaches...

Flighttime Enterprises, Inc. and Employees Indicted Over Alleged Role in Facilitating Illegal Exports to Russia

Flighttime Enterprises, Inc. and Employees Indicted Over Alleged Role in Facilitating Illegal Exports to Russia

In one of the most significant enforcement actions involving the illicit export of aircraft components to Russia since the imposition of sweeping sanctions in response to the country’s invasion of Ukraine, the U.S. Department of Justice recently unsealed an indictment charging FlightTime Enterprises, Inc. (“FTE”) and three of its employees implicated in a complex scheme to circumvent U.S. export controls. The indictment, filed in the...

Mitigating Risks of “Interacting” with Cartels and TCOs

Mitigating Risks of “Interacting” with Cartels and TCOs

We have some new vernacular to bring into the compliance arena — companies need to address risks of interacting with cartels and transnational criminal organizations (TCOs).  Companies need to understand the laws used to designate cartels and other organizations as Foreign Terrorist Organizations (FTOs) and Specially Designated Global Terrorists (SDGTs). Under current criminal and sanctions laws, FTOs and SDGTs create criminal and civil risks for...

Import Enforcement and Compliance Risks

Import Enforcement and Compliance Risks

The scope of new import tariffs and regulations portends significant operational risks and disruptions.  It is easy to imagine numerous companies that depend on imports for production purposes are facing a new set of challenges.  This is when companies are at risk of significant disruptions.  However, let us hope that many companies are prepared — the disruption caused from the 2020 Pandemic challenged companies to...

Updating Your Risk Profile to Respond to the New Trump Administration

Updating Your Risk Profile to Respond to the New Trump Administration

We live in a topsy-turvy world.  This is an exaggeration but sets up my points in this blog post. We are now seeing the shuffling of corporate risks and every board, C-Suite and legal, compliance and risk management team has to take a hard look at your company’s risks and reassess and re-rank them. Initial Review Some basic business and technology risks will stay the...

Sifting Through the Rubble — What to Make of the Topsy-Turvey World of FCPA Enforcement? (Part V of V)

Sifting Through the Rubble — What to Make of the Topsy-Turvey World of FCPA Enforcement? (Part V of V)

The dust is settling and for all the drama surrounding the Trump Administration’s refocus on FCPA enforcement, the picture is becoming a little bit clearer.  When cooler heads prevail, it is much easier to pick through the relevant issues and prioritize the issues and analysis. First, we need to put this in perspective.  From a much larger viewpoint, the FCPA pause has to be considered...

New FCPA Guidance — What to Expect (Part IV of V)

New FCPA Guidance — What to Expect (Part IV of V)

As we continue through the maze of Executive Orders and new Guidance, which is expected in 180 days, the questions surrounding FCPA enforcement are swirling.  In some respects, we have had a preview.  It is hard to know what will happen beyond some basic points. Let’s start with last week’s memo issued by Attorney General Bondi, which was entitled — Total Elimination of Cartels and...

Taking Stock of the FCPA Fallout (Part III of V)

Taking Stock of the FCPA Fallout (Part III of V)

What an amazing turn of events? — Who would have predicted that the Trump Administration would take such a bold action in the name of advancing “American Competitiveness.” I admit I did not see this coming — the Trump Administration during the first term had an aggressive record of FCPA enforcement. We all expected that to continue. Boardrooms, C-Suites and Legal/Compliance professionals are stunned.  How...