The SolarWinds cyber-attack was devastating in scope and impact. If any lesson can be learned from this event, the SolarWinds case presents all the pitfalls, enforcement and reputational damage, rolled into one tragic series of events. In a recent 10-K disclosure, SolarWinds announced that it is the subject of ongoing investigations conducted by the Department of Justice, the Securities and Exchange Commission, and various state...
There is much to be learned from reviewing the wreckage of a major Justice Department enforcement action. It is helpful to identify these themes, analyze the conduct and reasons for the violation, and identify helpful insights that can be applied to your company or project. Two significant enforcement actions in 2020 highlighted an important issue that lies at the heart of every company’s culture, especially...
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.
Webinar: Proactive Compliance, Monitoring and Testing Strategies Tuesday, March 9, 2021, 12 Noon EST Sign Up Here Compliance is rapidly evolving bringing together technology, data analytics and real-time monitoring capabilities. Compliance functions have to incorporate these capabilities to implement effective and cost-effective solutions. Michael Volkov and Jonathan Marks from Baker Tilly review this rapidly changing environment in this joint webinar.
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...
Deutsche Bank, the infamous German bank connected to former President Trump, settled FCPA and fraud cases with the Justice Department and the SEC, and agreed to pay a total of $130 million. In this Episode, Michael Review reviews the Deutsche Bank settlement.
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...
