In a recent brief to the Ninth Circuit Court of Appeals, the government argues that the federal wire fraud statute applies extraterritorially. This is yet another avenue through which federal authorities seek to acquire jurisdiction over conduct occurring outside the United States, particularly where the victims are US nationals, including corporations, or are located in the United States.
United Arab Emirates Courts Convict Fraudsters; Warn Banks and Telecoms Providers
The onshore and offshore courts of the United Arab Emirates (UAE)—that is to say, the courts in “mainland” UAE and the courts in the free zones of the UAE, respectively—have issued a number of recent convictions for fraud. In one noteworthy case, the Dubai Court held a local bank responsible for an AED 4.7 million (~USD 1.3 million) SIM card swap fraud, serving a reminder to all banks and telecommunication providers of the need to adopt rigorous security protocols.
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Extradition to US for Antitrust Violation
The US Department of Justice recently extradited an individual from Sicily to face an antitrust violation in the US. Barry Pupkin explains this is developing trend. Read his analysis here.
2019 Year-end White Collar Updates
In 2019, the US Department of Justice (DOJ) and other federal regulators continued to emphasize the importance of effective compliance programs, self-disclosure of violations of the law and cooperation with regulators during investigations.
In a new client alert out this week, we shed light on some of the updated guidance from various government agencies released last year, landmark state and federal court cases changing the enforcement landscape, as well as what they mean for companies dealing with them.
DOJ Revises Sanctions and Export Self-Disclosure Policy
The National Security Division recently revised its policy on cooperation credit in order to align with other components of the U.S. Department of Justice. The changes, which are designed to “reassure companies,” are discussed in our client alert available here.
Whistleblowers Root Out Corruption
The U.S. government relies upon whistleblowers to drive its recoveries under the False Claims Act. See our analysis here of how the Act’s qui tam provisions work, especially in healthcare, by Colin Jennings, Marisa Darden, and Ayako Hobbs.
False Claims Act Recoveries Back On The Rise
After a dip in the 2018 fiscal year, False Claims Act (FCA) settlements and judgments are back and climbing. The Department of Justice (DOJ) recently announced that it had obtained more than $3.05 billion from FCA settlements and judgments for the 2019 fiscal year. 2018 may have just been an aberration after the 2010s saw steady increases in FCA recoveries. This is particularly true because 633 new qui tam suits (12+ per week) were filed last year.
Recent South African Publication on Non-Profit Organizations and Financial Crimes
South Africa’s Financial Intelligence Centre (FIC) recently issued a public compliance communication on anti-money laundering and combating the financing of terrorism relating to non-profit organizations (NPOs). The publication aimed to create “awareness within the NPO sector around the vulnerabilities that NPOs face,” and sets out Financial Action Task Force (FATF) principles relating to NPOs.
Threat of Iranian Cyberattack Matters to Your Organization
The ongoing Iran-US tensions, and potential for retaliatory cyberattacks, alert each organization to prepare to defend against a cyberattack. Iran has a history of sophisticated cyberattacks in response to increased tensions. In a new client alert, our Data Privacy & Cybersecurity team recommends a thorough review of your people, facilities, networks, and data procedures in response to this increased threat environment.
Rare Due Process Reprieve for Company Penalized by OFAC for Violating Ukraine Sanctions
Following a ruling issued last week by a federal judge in Texas, ExxonMobil Corporation (“ExxonMobil”) will not have to pay a previously issued penalty for contracting with Russia’s state-owned PJSC Rosneft Oil Company (“Rosneft”), since it was not provided fair notice by the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) that Rosneft’s President and Chairman, designated by OFAC in his individual capacity, would provide a prohibited service to ExxonMobil by executing contracts between the parties in his official capacity.
