Deutsche Bank, the infamous German bank connected to President Trump, settled FCPA and fraud cases with the Justice Department and the SEC, and agreed to pay a total of $130 million.  The settlement included resolution of fraud charges against Deutsche Bank relating to a commodities fraud scheme, commonly referred to as “spoofing.” Under the global resolution, Deutsche Bank agreed to pay: (1) criminal penalties of...

The Justice Department handed Walmart a huge slap in the face last year with the filing of a comprehensive civil case alleging that Walmart knowingly distributed large quantities of opioids in disregard of the law that fueled the national opioids crisis. In a lengthy complaint (160 pages), DOJ outlined Walmart’s serious deficiencies in its compliance program and its unwillingness to spend money needed to prevent...

Congress enacted The Corporate Transparency Act, as part of the National Defense Authorization Act.  The CTA expands beneficial ownership disclosure requirements for US entities.  The new disclosure requirements target shell companies and small businesses to ensure disclosure beneficial ownership information. Liz Slim, Senior Counsel at The Volkov Law Group, interviews Scott Greytak from Transparency International USA, and Erica Hanichak from the FACT Coalition and review...

Sabre Corporation, the travel technology company, agreed to pay $2.4 million as a settlement with twenty-seven (27) State Attorneys General for a 2017 data breach involving hotel booking services.  In 2017, Sabre suffered a major data breach involving 1.3 million credit cards. Sabre was cited for failing to adhere to state laws governing breach notification and data security in response to a cyberattack against Sabre’s...

The 2020 OFAC enforcement record underscores the importance of sanctions compliance.  Yet, companies appear to move slowly in response to sanctions risks, often relying on outdated or outmoded screening technologies and failing to build basic policy controls and procedures. In reviewing the 2020 enforcement actions, many of the cases involve common miscues and compliance failures.  These cases fall into the following categories: (1) basic screening...

The pandemic and its impact is the story of 2020 – no doubt.  Federal prosecutors and regulatory enforcement agencies faced unprecedented challenges. In the face of these challenges,  however, enforcement almost across the board continued with some significant exceptions relating to individual criminal enforcement.  Prosecutors faced almost impossible obstacles to convening grand juries and conducting court proceedings while the deadly pandemic raged. Despite the challenges...

In 2020, the Justice Department did not insist on the appointment of any independent compliance monitors.  The year before, in 2019, DOJ insisted on the appointment of three independent corporate monitors – MTS Telecommunications, Fresenius and Wal-Mart.  If you ask me to distinguish between these cases and Goldman Sachs, Novartis or Herbalife, I would be hard pressed to provide a cogent explanation.  Granted, we are...

Despite the challenges facing OFAC during the pandemic and the strain on resources, OFAC continued its dogged commitment to sanctions enforcement.  While the numbers racked up by OFAC were lower because of the pandemic, OFAC later in the year resumed its aggressive pace of sanctions enforcement.  It even released two enforcement actions during the week between Christmas and New Year’s. In this Episode, Michael Volkov...

Jessica Sanderson, Partner at The Volkov Law Group, rejoins us for a posting on recent changes to export regulations involving Hong Kong. Jessica can be reached at [email protected]. Until recently, the U.S. government treated Hong Kong and China as two separate destinations for export control purposes and in many cases provided Hong Kong with preferential treatment.  At the end of 2020, however, on December 23,...