Each year, Michael Volkov reviews current trends concerning the state of the chief Compliance Officer. As we witness the continuing growth in stature of the CCO, it is important to exercise caution and realistically evaluate future trends and concerns.
The False Claims Act is a powerful tool for government prosecutors to use against healthcare providers, and drug and device companies. The Trump Administration used the False Claims Act to attack the opioid industry and rein in the industry. The Biden Department of Justice is likely to ramp up use of the False Claims Act. From an enforcement standpoint, the current situation creates a “perfect...
Federal prosecutors take an oath to execute their duties faithfully. Yet, like all professions, some federal prosecutors have violated this oath. For years, prosecutorial misconduct has come under heightened scrutiny. Do not get me wrong – most prosecutors (except for a small number) may engage in misconduct. There are numerous high-profile cases where misconduct has been egregious and troublesome (e.g. Senator Ted Stevens prosecution). I...
The Justice Department’s criminal investigation of the chicken producing industry continues to gain momentum. Pilgrim’s Pride is the first company to plead guilty and cooperate in the ongoing criminal investigation of the broiler chicken industry. Pilgrim’s Pride is the second largest chicken producer in the United States. Pilgrim’s Pride is the first company to plead guilty, although Tyson Foods (and possibly other companies) are cooperating...
Corporate boards will continue to face higher risks of liability. As the last bastion of legal privilege and protection, the wall of protection is crumbling bit by bit. Eventually, corporate stakeholders will demand that board members improve performance. At the core of board member protection from liability is the well-known Caremark doctrine that requires corporate boards to make a good faith effort to implement a...
The Treasury Department’s Office of Foreign Asset Control continues to focus enforcement activities on digital currency companies. This focus is likely to increase given recent comments by Janet Yellen, the head of the Treasury department, criticizing digital currencies and the utility of this rapidly growing new technology. Last year, OFAC announced an enforcement action against BitGo, a digital wallet asset management service. In OFAC’s latest...
Alex Cotoia, Regulatory Manager and Compliance Consultant at the Volkov Law Group, re-joins us for a posting on U.S. Antiboycott Laws. Alex can be reached at [email protected]. An often overlooked, but potentially substantial risk factor in a company’s export compliance strategy is the degree to which the company is both familiar with—and adheres to—U.S. Departments of Treasury and Commerce regulations governing the participation of covered...
The Justice Department recently announced a settlement with Avnet Asia for illegal shipments of sensitive U.S. commodities to China and Iran. Under the settlement, DOJ agreed to a non-prosecution agreement (NPA) in exchange for Avnet Asia’s payment of a $1.508 million monetary penalty and continued cooperation. Avnet Asia also agreed to an administrative settlement of approximately $1.72 million to settle claims that it illegally exported...
The Volkov Law Group is pleased to announce scheduling of new Ethics and Compliance Working Sessions (E&C Working Sessions) to foster small group discussions on ethics and compliance issues of interest. As we all continue to push through the pandemic and remote working arrangements, legal and compliance professionals require more than large group webinars. Perhaps you’ve grown a bit tired of passively listening to webcasts...
PT Bukit Muria Jaya (BMJ), a global supplier of cigarette paper based in Indonesia, agreed to pay $1,561,570 for conspiracy to commit bank fraud as part of a scheme to deceive various banks in order to collect payments for cigarette paper exports to North Korea. BMJ entered into an eighteen month deferred prosecution agreement with the Justice Department in exchange for the payment of the...
