Compliance and ethical culture mandates have experienced a significant transformation. From the early days of compliance, organizations pigeon-holed compliance into a role akin to “law enforcement.” I will always recall meeting with a client years ago and when the CCO walked into the room, a senior executive exclaimed, “Uh, oh, the sheriff is in town.” That was not a good sign. Compliance by fear is...
False Claims Act prosecutions continue against healthcare executives, physicians and professionals. Last year, DOJ recovered over $5.6 billion in FCA enforcement. DOJ expects total recoveries to increase in 2022. Over 95 percent of False Claims Act prosecutions involved healthcare fraud and kickbacks. Two Doctors and Eight Others Indicted for Healthcare Kickbacks In a recent prosecution in the Northern District of Texas, DOJ announced the indictment...
The rise of ESG programs did not just come out of thin air. Frankly, in many respects, ESG tied together important trends relating to sustainability, social justice, reputational damage and climate change. Many organizations involved in the extractive industries already had elevated sustainability as an important priority. Indeed, for years, a number of these organizations issued annual sustainability reports. With increasing focus on environmental and...
In a much-anticipated action, President Biden announced a prohibition on all Russian oil and gas imports. The United States relies on Russia oil for approximately 8 percent of its needs. Simultaneously, the United Kingdom announced it will reduce oil and gas imports from Russia over the next nine months. The UK relies on Russian oil and gas imports for approximately 18 percent of its energy...
The U.S. Attorney’s Office for the Southern Direct of New York recently announced the indictment of Jack Hanick, a United States citizen, of violating the U.S. sanctions against Russia and false statements in connection with his work for a sanctioned oligarch Konstantin Malofeyev. Hanick is a television producer ad worked with Malofeyev, a Specially Designated National (“SDN”) designated under the Crimea Sanctions Program adopted in...
The Department of Justice has announced its plan to aggressively enforce the new Russia Sanctions Program. In response to the dire humanitarian situation in the Ukraine, DOJ took two significant actions – creation of the KleptoCapture Task Force and a commitment to enforcement of the Russia sanctions and export control. DOJ’s second statement of intent is significant. DOJ’s record of criminal enforcement of prior sanctions...
As announced during his State of the Union, President Biden and U.S. Allies and partners, announced additional sanctions against Russia and Belarus. In recognition of the impact of the sanctions and export controls on the energy industry, the United States and Allies released 60 million barrels of oil from strategic reserves. The new restrictions include: Expansion of BIS Sanctions from Russia to Belarus: The United...
The Russia-Ukraine crisis has created a fast-moving compliance nightmare – sanctions and export controls around the globe are changing each day. Some major companies are pulling out of Russia completely in response to the crisis. Others are trying to keep up with sanction requirements and adjusting specific controls each day. Whatever approach is taken, trade compliance officers have their hands full. United States On the...
In a significant step designed to increase financial pressure on Russia in response to its invasion of Ukraine, the Department of Treasury’s Office of Foreign Asset Control (“OFAC”) issued new sanctions to prohibited United States persons from engaging the Central Bank of the Russia, the National Wealth Fund of Russia, and the Ministry of Finance. In effect, the new sanctions freeze all Central Bank assets...
In a significant step, on Saturday, February 26, 2022, the United States and leaders of the European Commission, France, Germany, Italy, the United Kingdom, and Canada announced additional sanctions against key Russian institutions and banks. The weekend announcement indicated that the specific sanctions will be released in the next few days. The United States and Allies explained that the additional measures are designed to “ensure...
