Welcome to Dorsey & Whitney’s monthly Anti-Corruption Digest. The Digest puts material regarding anti-corruption enforcement from around the world at your fingertips, keeping you ahead of critical events that impact global...more
7/7/2017
/ Bribery ,
Chief Compliance Officers ,
Civil Monetary Penalty ,
Compliance ,
Criminal Convictions ,
Criminal Prosecution ,
Declination ,
Department of Justice (DOJ) ,
Disgorgement ,
Enforcement Actions ,
Fédération Internationale de Football Association (FIFA) ,
Financial Conduct Authority (FCA) ,
Foreign Corrupt Practices Act (FCPA) ,
Money Laundering ,
SCOTUS ,
Securities and Exchange Commission (SEC) ,
Statute of Limitations ,
Tax Evasion
The classic 1957 American mystery film “Three Faces of Eve,” about a woman with multiple personalities, may well describe the approach taken by the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange...more
Internal controls has been at the center of a number of Commission enforcement actions in recent months. Its most recent action in this area focuses on a firm that recognized revenue in a manner that was inconsistent with its...more
The Commission’s enforcement division and inspectors at OCIE continue to work closely and have developed a series of cases in recent months. One of the more unusual proceeding spawned through this relationship is the action...more
Welcome to Dorsey & Whitney’s monthly Anti-Corruption Digest. In this digest, we draw together news of enforcement activity throughout the world and aim to reduce your information overload. Our London, Minneapolis, New York...more
4/28/2016
/ Alstom ,
Anti-Corruption ,
Avon ,
Brazil ,
Bribery ,
Compliance ,
Cooperation ,
Deferred Prosecution Agreements ,
Department of Justice (DOJ) ,
Egypt ,
Enforcement Actions ,
Federal Pilot Programs ,
Federal Sentencing Guidelines ,
Foreign Corrupt Practices Act (FCPA) ,
Kuwait ,
Novartis ,
Remediation ,
Securities and Exchange Commission (SEC) ,
Self-Reporting ,
Serbia ,
Serious Fraud Office (SFO) ,
Turkey ,
UK ,
Voluntary Disclosure ,
Wells Fargo ,
White Collar Crimes
The Commission prevailed at trial in a market manipulation case. The trial followed a series of settlements and a grant of summary judgment in the Commission’s favor as to one defendant. The remaining defendant, a former NFL...more
4/22/2016
/ Audits ,
Cherry Picking ,
Enforcement Actions ,
Hong Kong ,
Hong Kong Securities and Futures Commission (HKSFC) ,
Internal Controls ,
Investment Adviser ,
Investment Fraud ,
Jury Trial ,
Market Manipulation ,
Misrepresentation ,
PCAOB ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
Swaps
The Commission has increasingly focused on data analysis as an aid to its enforcement program. Two recent cases brought against investment advisers for cherry picking illustrate different facets of the approach....more
Financial fraud has long been a staple of SEC enforcement. In the wake of the market crisis the agency has attempted to once again focus on the area creating, for example, a financial fraud task force two years ago. Last...more
Sometimes is does not pay to be the last man standing – particularly in a Commission enforcement action. Such was the fate of former NFL player and Olympic athlete Willie Gault. SEC v. Heart Tronics, Inc., Case No....more
The lure of big profits from the settlement of large personal injury law suits was the hook used by a lawyer and his partner to attract investors to Prometheus Law. The thought of all those dollars — virtually riskless...more
Budget hearings were a focus this week as the Chair of the SEC and Chairman of the CFTC visited Capitol Hill. Both sought substantial increases, requesting more money for technology, inspections and enforcement. While the...more
4/15/2016
/ Books & Records ,
CFTC ,
Class Action ,
Compliance ,
Congressional Committees ,
EB-5 ,
Enforcement Actions ,
False Statements ,
Financial Reporting ,
FinCEN ,
Foreign Corrupt Practices Act (FCPA) ,
Immigrant Investor Program ,
Insider Trading ,
Internal Controls ,
Municipal Bonds ,
Offering Fraud ,
Securities and Exchange Commission (SEC)
A new report on securities class actions records an increase in the number of filings in 2015. Most of those actions were brought against smaller issuers, according to the report. PWC, Small Companies, Big Targets – 2015...more
The Commission brought another in a series of actions centered on ConvergEx Execution Solutions LLC and its affiliates. As with the prior actions, this one centered on secretly adding substantial commissions to transactions...more
A former Texas Attorney General and state representative combined with others at a computer firm to promote the shares of the company which claimed to compete with Dell, Apple and others. About $26 million in stock was sold...more
FCPA cases typically center on the payment of bribes to obtain or retain business. The bribes paid are usually small in comparison to the profits achieved – the obvious motive for the wrongful conduct. The profits of course...more
4/11/2016
/ Casinos ,
China ,
Compliance ,
Corporate Counsel ,
Department of Justice (DOJ) ,
Financial Reporting ,
Foreign Corrupt Practices Act (FCPA) ,
Gaming ,
Hotels ,
Internal Controls ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act
The Foreign Corrupt Practices Act was a key focus this week. The DOJ announced a new one year Pilot Program which holds the promise of a significant reduction in penalties if the firm self-reports and takes a series of steps....more
4/8/2016
/ Class Action ,
Compliance ,
Department of Justice (DOJ) ,
Electronic Trading ,
Enforcement Actions ,
Federal Pilot Programs ,
Foreign Corrupt Practices Act (FCPA) ,
Gaming Commissions ,
Hong Kong ,
Hong Kong Securities and Futures Commission (HKSFC) ,
Internal Controls ,
Moody's ,
PCAOB ,
Securities and Exchange Commission (SEC) ,
UK
In recent years the SEC has brought a series of investment and offering fraud actions. Typically those actions center on schemes which promise to-good-to-be-true returns in which investors lose substantial sums. In what may...more
DOJ’s continuing focus on individuals has spawned a new one year FCPA Pilot Program which offers companies enhanced cooperation credit The new Pilot Program is part of an overall effort to bolster FCPA compliance. Those...more
4/6/2016
/ Compliance ,
Cooperation ,
Corporate Misconduct ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Federal Pilot Programs ,
Foreign Corrupt Practices Act (FCPA) ,
Individual Accountability ,
Remedial Actions ,
Risk Assessment ,
Securities and Exchange Commission (SEC) ,
Self-Reporting
The Supreme Court declined to hear Bebo v. SEC, 799 F. 3d 765 (7th Cir. 2015), a suit challenging the SEC’s venue selection. The Court’s order left standing the decision of the circuit court affirming the dismissal of the...more
4/4/2016
/ Accounting Standards ,
Administrative Proceedings ,
Bebo v SEC ,
Blockchain ,
CFTC ,
Enforcement Actions ,
EU ,
European Securities and Markets Authority (ESMA) ,
Mary Jo White ,
Petition for Writ of Certiorari ,
Risk Assessment ,
SCOTUS ,
Securities and Exchange Commission (SEC) ,
Securities Litigation ,
Venue
Cornerstone Research released a report on Securities Class Action Settlements, “Securities Class Action Settlements, 2015 Review and Analysis”. It records an increased number of settled securities class actions last year....more
The founder of a venture capital fund, assisted by its chief legal officer and controller, took more money from the fund as “advanced fees” than was actually due and owing. The money was used for other entities in the...more
A former managing principal of Blackstone Group, and a partner at Park Hill Group which raises capital for private equity, was charged by the SEC and Manhattan U.S. Attorney’s Office with fraud. The charges are based on...more
The SEC continues to prevail in actions brought challenging its venue selections. On March 28, 2016, the Supreme Court denied a request for a writ of certiorari in Bebo v. SEC, 799 F. 3d 765 (7th Cir. 2015). Ms. Bebo’s case...more
The Commission prevailed on a summary judgment motion this week in a case based on an offering fraud. It also filed another settled FCPA action centered on gifts, travel and entertainment provided to healthcare professionals...more
3/28/2016
/ Audits ,
Criminal Conspiracy ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Hong Kong ,
Hong Kong Securities and Futures Commission (HKSFC) ,
Market Manipulation ,
Meals-Gifts-and Entertainment Rules ,
Novartis ,
Offering Fraud ,
Pump and Dump ,
Securities and Exchange Commission (SEC) ,
Unregistered Securities
Pump- and-dump schemes keyed to microcap stocks seem to be the flavor of the week. On Friday the mastermind of an international market manipulation scheme was sentenced to serve 18 years in prison. U.S. v. Gallison,...more