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OFAC Sanctions Compliance Insights from Standard Chartered Bank Enforcement Action (Part III of III)

The Treasury Department’s Office of Foreign Asset Control (OFAC) has promised to issue guidance on effective sanctions compliance programs.  This is a long-anticipated update to prior information OFAC has released on the same subject. OFAC has raised the stakes for sanctions enforcement, especially with respect to Iran and Venezuela sanctions programs.  So far this year, OFAC has announced a number of significant enforcement actions and...

Standard Chartered Bank’s Continuing Culture Challenges and Sanctions Compliance (Part II of III)

Standard Chartered Bank certainly has its troubles.  You know a company is in trouble, however, when it breathes a sigh of relief after paying nearly $1.1 billion in fines and penalties and compares itself to BNP Paribas, the global French bank, which paid over $8 billion for pervasive US sanctions violations.  The Justice Department and OFAC have had a target-rich environment when reviewing global bank...

Stephen Cheng and Noah Smith Write on Senator Warren’s Corporate Executive Accountability Proposal

Stephen Cheng and Noah Smith, Associates at The Volkov Law Group, recently published an article on Law 360, How Warren Bill Would Change Liability For Corporate Execs. “If the criminal penalties in the Corporate Executive Accountability Act — recently proposed by Sen. Elizabeth Warren, D-Mass. — ever became law, they would usher in sweeping implications for the way big companies approach their legal compliance efforts.”...

Standard Chartered Pays Over $1 Billion for Continuing Sanctions Violations (Part I of III)

Global banks are the poster children of sanctions violations and the importance of trade compliance.  At the top of the heap is Standard Chartered Bank. In a long-awaited resolution of a multi-year investigation, the Justice Department, the Treasury Department’s Office of Foreign Asset Control (OFAC), the New York District Attorney’s (DANY), the Federal Reserve, the New York State Department of Financial Services (DFS) and the...

Episode 85 — A Deep Dive into the Fresenius Medical FCPA Settlement

Fresenius Medical, the largest supplier of dialysis equipment and services agreed to pay $231 million to the Justice Department and the SEC to resolve FCPA violations in 17 countries in Africa, the Middle East and Europe.  Fresenius entered a non-prosecution agreement  with the Justice Department, in which it agreed to pay an $87 million payment and a two-year corporate monitor.  Fresenius agreed to enhance its compliance program and...

Checking in on Criminal Healthcare Fraud Prosecutions

For criminal defense practitioners, it is easy to lose perspective when focused on FCPA, export control/sanctions and AML prosecutions.  In the healthcare fraud area, prosecutors continue to aggressively enforce anti-kickback and fraud statutes through criminal prosecutions. The Justice Department has made its priority in this area clear – by dedicating law enforcement resources and prosecutors to investigating and prosecuting healthcare fraud schemes.  As government participation...

Three Pharmaceutical Companies Pay a Total of $122 Million to Settle Kickback Allegations Involving Co-Pay Assistance Foundations

In a significant False Claims Act enforcement action, DOJ announced settlements with three pharmaceutical companies – Jazz Pharmaceuticals, Lundbeck, and Alexion Pharmaceuticals – under which they agreed to pay $122 million to resolve allegations they violated the False Claims Act by paying Medicare of the Civilian Health and Medical Program (ChampVA) copayments for their own products through allegedly independent foundations that the companies used as...

DOJ Collects Millions in Two High-Profile False Claims Act Cases

Companies that depend on federal funding (e.g. healthcare, government contractors and university researchers) face significant risks for False Claims Act prosecutions.  Relying on pro-government False Claims Act statutes, potential whistleblowers can earn enormous judgments by filing private actions under seal, and seeking federal government intervention in the matter, to prosecute False Claims Act violations.  In those cases where the federal government agrees to intervene, the...

Five Signs Your Company Lacks Integrity

It is always easy to second-guess or look back with 20-20 hindsight on a compliance breakdown and point out all the problems that were ignored or created by corporate actors.  There are common factual scenarios that recur in DOJ and regulatory enforcement actions, some of which fall into certain categories.  While defense counsel (being effective advocates) often argue that bad actors are often “rogue” employees,...

Tom Fox and Mike Volkov Discuss the Fresenius Medical FCPA Enforcement Action

Tom Fox and I recently had a chance to discuss the Fresenius Medical FCPA enforcement action. A link to the podcast is here. Fresenius Medical, the largest supplier of dialysis equipment and services, agreed to pay $231 million to the Justice Department and the SEC to resolve FCPA violations in 17 countries in Africa, the Middle East and Europe. Fresenius entered a non-prosecution agreement with...