Featured Articles:

DOJ and Boeing Propose Criminal Plea Agreement — Boeing to Plead Guilty to Felony and Pay $243 Million Penalty (Part I of III)

The Boeing 737 MAX case took another dramatic turn.  On July 24, 2024, the Department of Justice filed with the United States District Court for the Northern District of Texas a proposed plea agreement with Boeing.  The plea agreement, which has been filed under Federal Rule Criminal Procedure 11(c)(1)(C), requires the Court to approve and accept the deal.  The Court can reject the plea deal...

Episode 331 — NAVEX State of Risk and Compliance

NAVEX delivers quality studies and important insights on ethics and compliance topics.  In its 2024 State of Risk & Compliance, NAVEX provides a comprehensive report on current trends and practices involving risk and compliance management. The Report reflects the survey results from over 1,000 respondents global who influence or manage their organization’s risk and compliance programs. Over half of the respondents came from the United...

OFAC Releases Guidance on Extended Statute of Limitations & Forthcoming Recordkeeping Changes

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) has released updated guidance concerning recent legislation that doubled the statute of limitations for violations of certain sanctions and export control provisions. This updated guidance provides clarity regarding time-bars for enforcement and includes additional information about OFAC’s planned extension of record-keeping requirements. On April 24, 2024, President Biden signed into law the 21st Century Peace...

DaVita Pays $34 Million to Settle Kickback Violations

DaVita is a regular target of government enforcement actions involving fraud and illegal kickbacks.  It has an extensive history of violations and settlements.  here is a list of some of the highlights:: In its most recent settlement, DaVita paid just over $34 million to resolve claims that it violated the Anti-Kickback Statute (“AKS”)  by paying kickbacks to induce referrals to DaVita Rx, a former subsidiary...

The Continuing Plague of Healthcare Fraud

Healthcare fraud is an ever-growing constant in our economy.  It is a battle that presents new and exponential challenges.  The U.S. Department of Justice, the HHS-Office of Inspector general and State Attorneys’ General all are united in this fight with the support of federal state and local law enforcement. Companies in the healthcare sector continue to operate in this high-risk environment.  The war against healthcare...

SEC Suffers Major Blow in Securities Fraud Case Against SolarWinds

A New Your federal district judge handed down a significant decision dismissing much of the SEC’s securities fraud enforcement action against SolarWinds arising from its claims relating to SolarWinds’ cybersecurity policies, and disclosure of a significant cyberattack against the SolarWinds’ network. In an unprecedented case, the SEC alleged that SolarWinds, which went public in 2018, mislead the public as to the effectiveness of its cybersecurity...

Episode 330 – Halyna Senyk on Anti-Corruption Progress in Ukraine

Halyna Senyk, a Senior Program advisor from the CEELI Institute, joins us to discuss anti-corruption progress and challenges in the Ukraine.  Halyna is responsible for managing the CEELI Institute’s anti-corruption portfolio.  Based in Prague, the CEELI Institute focuses on promoting the rule of law through professional training programs for judges, law enforcement, lawyers, prosecutors, civil society representatives and investigative journalists. While its main activities are...

NAVEX’s Report on the State of Compliance: Positive News with Serious Gaps Noted

NAVEX delivers quality studies and important insights on ethics and compliance topics.  In its 2024 State of Risk & Compliance, NAVEX provides a comprehensive report on current trends and practices involving risk and compliance management. The Report reflects the survey results from over 1,000 respondents global who influence or manage their organization’s risk and compliance programs. Over half of the respondents came from the United...

District Court Rejects Challenges to ITAR Criminal Charges

On July 9, 2024, District Judge David Hale in Kentucky denied motions to dismiss and motions to suppress filed by four defendants against a criminal case involving ITAR charges for illegal exports of sensitive, defense-related diagrams to Chinese companies. The Justice Department has charged Quadrant Magnetics LLC and three executives, Phil Pascoe, Scott Tubbs, and Monica Pascoe in a nine-count indictment for the illegal shipment...

SEC Expands Internal Controls Provision to Cover Cybersecurity Incidents and Reaches $2.1 Million Settlement with R.R. Donnelley & Sons Co.

In a significant expansion of internal controls enforcement, the SEC announced a $2.1 million settlement with R.R. Donnelley & Sons Co. (“RRD”) for its handling of a 2021 ransomware attack and resulting disclosure failures.  The settlement represents the SEC’s first application of its internal controls enforcement authority to include cybersecurity policies and procedures.  In 2021, RRD suffered a cyber attack in which a threat actor...