Corruption, Crime & Compliance

Featured Articles:

13 Aug, 2024

BIS Publishes Proposed Revisions to EAR Addressing U.S. Person Support for “Foreign Security” and Military End Users

On July 25, 2024, the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) published two (2) new rules in the Federal Register that significantly expand the scope of existing “U.S. Person” prohibitions currently in existence under the Export Administration Regulations (“EAR”) to encompass support activities that relate to both newly defined “foreign-security” end users as well as certain redefined “military” end users. The rules—introduced...

Episode 333 — Boeing Plea Agreement in 737 MAX Safety Case

Podcasts

11 Aug, 2024

Episode 333 — Boeing Plea Agreement in 737 MAX Safety Case

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...

General

7 Aug, 2024

EU Revises Restrictive Measure “Best Practices” to Account for Adoption of OFAC 50% Rule Equivalent

On July 3, 2024, the Council of the European Union (“EU Council”) officially promulgated a new set of best practices (“best practices” or “guidance”) for organizations seeking to comply with the latest sanctions regulations (also known as “restrictive measures”) adopted by the EU to advance critical foreign policy objectives—including, but not limited to, the EU’s ongoing support for Ukraine against Russian Federation aggression. The issuance of...

General

6 Aug, 2024

FinCEN Issues Proposed Rule to Strengthen and Modernize Financial Institutions’ AML/CFT Programs

By: Sam Finkelstein and Daniela Melendez, associates at the Volkov Law Group . Sam can be reached at [email protected] and Daniela can be reached at [email protected]. On June 28, 2024, the Financial Crimes Enforcement Network released a notice of proposed rulemaking. The purpose of the proposed rule is to strengthen and modernize Anti-Money Laundering and Countering the Financing of Terrorism (“AML/CFT”) processes for financial institutions (including, but not...

General

5 Aug, 2024

State Street’s $7.45MM OFAC Penalty Highlights Importance of Sanctions in M&A Due Diligence

The U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) has released a $7.45 million penalty against State Street Bank and Trust Company and its non-bank, fintech subsidiary Charles River Systems for 38 apparent violations of the Ukraine/Russia-Related Sanctions Regulations, which occurred between December 2016 and May 2020. State Street is a global financial services and bank holding company headquartered in Boston, and is...

Podcasts

4 Aug, 2024

Episode 332 — Deep Dive into SEC’s Internal Controls and Cybersecurity Settlement with R&R Donnelly

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. The SEC’s interpretation represents a significant expansion of its enforcement authority. In...

General

2 Aug, 2024

Gentiva Pays $19.4 Million for False Claims Act Violations Involving Hospice Care

Gentiva, the renamed former Kindred at Home, agreed to pay $19.4 million to resolve claims that its predecessor company, Kindred at Home and related companies, violated the False Claims Act by retaining overpayments for hospice services provided to patients. Gentiva’s hospice operations, based in Atlanta, include various organizations that previously operated hospice locations under various brand names including Avalon, Kindred, SouthernCare and SouthernCare New Beacon....

General

31 Jul, 2024

Boeing’s Failure to Integrate Compliance Anti-Fraud Controls with Quality and Safety Functions (Part III of III)

Boeing’s Plea Agreement includes two Separate Factual Statements — the January 7, 2021 DPA, which is discussed in a prior blog post, and a factual outline of Boeing’s breach of the original DPA, resulting in the current Plea Agreement. The most recent Factual Statement covers Boeing’s DPA breach for failure to implement an effective ethics and compliance program that is “designed, implemented, and enforced to...

General

30 Jul, 2024

Deep Dive into Proposed Boeing Plea Agreement (Part II of III)

DOJ and Boeing have entered into a proposed plea agreement that will require judicial scrutiny and determinations of the public interest and the victims’ rights under the Crime Victims’ Rights Act, 18 U.S.C. § 3771 [“CVRA”]. The prosed Plea Agreement includes several interesting features that address appointment of an independent compliance monitor, and Boeing’s consideration of the impact of Boeing’s malfeasance on the victims’ families....

General

29 Jul, 2024

Featured Articles:

BIS Publishes Proposed Revisions to EAR Addressing U.S. Person Support for “Foreign Security” and Military End Users

Episode 333 — Boeing Plea Agreement in 737 MAX Safety Case

EU Revises Restrictive Measure “Best Practices” to Account for Adoption of OFAC 50% Rule Equivalent

FinCEN Issues Proposed Rule to Strengthen and Modernize Financial Institutions’ AML/CFT Programs

State Street’s $7.45MM OFAC Penalty Highlights Importance of Sanctions in M&A Due Diligence

Episode 332 — Deep Dive into SEC’s Internal Controls and Cybersecurity Settlement with R&R Donnelly

Gentiva Pays $19.4 Million for False Claims Act Violations Involving Hospice Care

Boeing’s Failure to Integrate Compliance Anti-Fraud Controls with Quality and Safety Functions (Part III of III)

Deep Dive into Proposed Boeing Plea Agreement (Part II of III)

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

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