News & Analysis as of

Third-Party Fraud

American Conference Institute (ACI)

The Big Picture: Anti-Corruption Enforcement and Integrity Program Developments in Brazil

The last several months brought forth major reforms to Brazil’s anti-corruption regulations and enforcement environment, including in the way that Brazilian companies are expected to enhance their compliance programs....more

Foley & Lardner LLP

Key Takeaways: 7th Annual “Let’s Talk Compliance” Conference

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Editor’s Note: PYA and Foley & Lardner hosted the 7th Annual “Let’s Talk Compliance” two-day virtual conference on January 23 and 24, 2025. Panelists included Foley attorneys and PYA subject matter experts. The event was...more

Vedder Price

FINRA Publishes 2025 Regulatory Oversight Report

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On January 28, 2025, FINRA published its annual regulatory oversight report for 2025 (Report), which highlights observations and findings from FINRA’s oversight programs. The Report covers 24 topics, and for each topic it...more

Ankura

Balancing Agility and Speed with Preparation and Stability: Importance of Governance in a Fintech Startup

Ankura on

In all our work with clients, my evaluation and expectations around compliance readiness come down to one point: Governance. This can mean a variety of things when it comes to a compliance program, but overall, we boil it...more

Whiteford

Indemnity Clauses, Claims & Controversies

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Indemnification is a key component in virtually every M&A deal, serving as a detailed and nuanced contractual risk allocation device between the Buyer and Seller. Though drafted in a two-way fashion, indemnity operates in the...more

King & Spalding

Bankruptcy Appellate Panel of the Tenth Circuit Rejects Claw Back for Third Party Guaranty

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On February 21, 2024, the U.S. Bankruptcy Appellate Panel of the Tenth Circuit held that a debtor who receives several direct benefits from a loan to an operating company has received “reasonably equivalent value” in exchange...more

Knobbe Martens

Minority Owners of a Trademark Registrant, Who neither Use nor Possess Ownership Rights in the Mark, Cannot Seek Cancellation of...

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Appeal from the United States Patent and Trademark Office, Trademark Trial and Appeal Board. Summary: Parties that own minority shares in the trademark registrant, but do not separately use or possess an ownership right in...more

Perkins Coie

CFPB Issues New Report Examining Financial and Privacy Risks to Consumers in Video Gaming Marketplaces: What Now?

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On April 4, 2024, the Consumer Financial Protection Bureau (CFPB) issued a new report, titled “Banking in Video Games and Virtual Worlds” (Report), that examines the growth of financial transactions in online video games and...more

Morrison & Foerster LLP

CFPB Issues Report on Risks Posed by Video Game Marketplaces

On April 4, 2024, the Consumer Financial Protection Bureau (CFPB) issued a report on “Banking in video games and virtual worlds” (Report). The Report focuses on the movement of money in virtual worlds and how gamer data is...more

Fox Rothschild LLP

IRS Identifies Seven ERC Red Flags (and Other ERC Updates)

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The IRS recently issued a news release identifying seven signs that a business’s Employee Retention Tax Credit (the ERC) may be incorrect. The IRS identified these warning signs based on feedback from tax professionals and...more

Brownstein Hyatt Farber Schreck

State AGs and the INFORM Consumers Act: Key Takeaways

With a new law on the books aiming to protect consumers from fraudulent online sales, it’s a good time for online marketplaces, third-party sellers and retailers to reexamine their compliance programs and relationships with...more

Dechert LLP

UK Court of Appeal Indicates that Victims of Fraud Can Target Third Parties

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Under section 213 Insolvency Act 1986, liquidators may bring claims against third parties suspected of being a party to fraud, even where they were not involved in the management or control of the insolvent company. The...more

Fox Rothschild LLP

IRS Renews Warning on Employee Retention Credit Fraud, DOJ Files First Criminal Charges

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Employers should be careful before claiming the Employee Retention Credit (ERC). Over the past several months, the Internal Revenue Service (IRS) has warned taxpayers twice about third parties who advise employers to claim...more

Wiley Rein LLP

Court Finds Business Interruption Coverage for Losses Resulting From Fraudulent Email Scheme

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A Minnesota federal district court has held that a software company is entitled to coverage for losses related to diverted billing emails under its business interruption coverage, rejecting the insurer’s argument that the...more

Ervin Cohen & Jessup LLP

Third-Party Email Fraud Covered By Insurance Policies

In Medidata Solutions, Inc. v. Federal Insurance Company, 268 F. Supp. 3d 471 (S. D. N. Y. 2017), aff’d, 729 Fed. Appx. 117 (2nd Circuit 2018), the Court found that there was insurance coverage where a company had been...more

Winstead PC

Suing Attorneys In Texas For Participating in Fiduciary Breaches

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It is not uncommon for an attorney to execute all or part of his or her client’s wishes, which may be in breach of a fiduciary duty owed by the client to a third party. The third party can certainly sue the client for...more

Wiley Rein LLP

Third-Party Wire Fraud Triggers Conversion Exclusion Under Professional Liability Policy, Despite No Direct Insured Involvement in...

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Applying New Jersey law, the United States District Court for the District of New Jersey has held that a conversion exclusion bars coverage under a professional liability policy for multiple claims against an insured title...more

Snell & Wilmer

Patience on Payments Can Hurt

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A recent Utah Court of Appeals opinion, HKS Architects, Inc. v. MSM Enterprises Ltd. 2021 UT App. 70, puts contractors and designers on notice that they need to pay attention to receivables and excuses for non-payment. The...more

ArentFox Schiff

Investigations Newsletter: Former Theranos CEO Convicted of Defrauding Investors

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Former Theranos CEO Convicted of Defrauding Investors - Elizabeth Holmes, founder and former CEO of blood testing start-up Theranos, was found guilty of one count of conspiracy and three counts of wire fraud for her...more

Cozen O'Connor

Show Me the Money: Attorneys General Urge CFPB on Complaints About Money-Sharing Platforms, Apps

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On December 20, 2021, a bipartisan group of 33 AGs, led by Idaho AG Lawrence Wasden and Oregon AG Ellen Rosenblum, sent a letter to the Director of the CFPB in response to the CFPB’s Request for Comments on its inquiry into...more

Morrison & Foerster LLP

Theranos: The Limits of the “Fake It Till You Make It” Strategy

In the case that tested the limits of the “fake it till you make it” approach to a startup business, on January 3, 2022, a jury in the U.S. District Court for the Northern District of California convicted Elizabeth Holmes,...more

Foley & Lardner LLP

CMMC 2.0 Brings Increased Flexibility — and Increased Risks — for Contractors

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Defense contractors and their subcontractors and supply chains that have been preparing for the challenge of complying with the Cybersecurity Maturity Model Certification (CMMC) recently received some welcome news from the...more

McGlinchey Stafford

Florida Real Property And Business Litigation Report Volume XIII, Issue 50

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M & M Realty Partners at Hagen Ranch, LLC v. Mazzoni, Case No. 18-13536 (11th Cir. 2020). A “binding financial commitment” from a third party, including a wholly owned business entity, is required in order to satisfy the...more

Bass, Berry & Sims PLC

Chris Lazarini Discusses Judicial Review of FINRA's Refusal to Compel Arbitration

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Bass, Berry & Sims attorney Chris Lazarini discussed a court’s authority to compel arbitration where FINRA has declined to accept a case. In this case, following the Director of FINRA’s Office of Dispute Resolution...more

Winstead PC

Court Holds That A Plaintiff Can Raise A Conspiracy To Breach Fiduciary Duty Claim Even Where The Party Who Owed Fiduciary Duties...

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In Klinek v. Luxeyard, Inc., a company sued its majority shareholder in a suit for breach of fiduciary duty arising from a pump-and-dump scheme and later settled that claim. No. 14-17-00899-C, 2019 Tex. App. LEXIS 9421 (Tex....more

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