News and Analysis Related to Global Enforcement, White-Collar, and Regulatory Trends and Developments
On May 8, 2019, the Division of Enforcement of the Commodity Futures Trading Commission released an Enforcement Manual – the first public document of its kind from the Division.
Though the Manual does not reveal any significant shifts in policy, it will undoubtedly serve as an important resource for individuals and entities dealing with CFTC…
On May 7, 2019, the Department of Justice issued formal guidance to DOJ’s False Claims Act litigators on the circumstances in which DOJ will grant credit for cooperation during FCA investigations.
The guidance explains the factors that DOJ considers in determining whether to award cooperation credit in FCA investigations and the types of credit available.…
On May 2, 2019, the United States District Court for the Southern District of New York issued an important decision delineating the boundaries between conducting a proper internal investigation and acting as an arm of the government.
For the government, the consequences of “outsourcing” an investigation to a company and its counsel could be exclusion…
In recent weeks two enforcement actions by the UK Financial Conduct Authority (“FCA”) against regulated firms have highlighted the regulator’s continued scrutiny of transaction reporting. In the decisions, the FCA has reiterated the importance of complete, accurate and timely transaction reporting to assist in its objective of protecting and enhancing the integrity of the UK’s financial system. The significant penalties imposed in each case, £27.6 million and £34.3 million respectively, demonstrate the serious consequences for firms that fail to meet their transaction reporting requirements.
Continue Reading FCA Continues Focus on Transaction Reporting Breaches
Legal and regulatory scrutiny regarding the use of non-disclosure agreements by companies to resolve allegations of sexual harassment and misconduct continues to increase in the wake of the #MeToo movement. Such scrutiny featured prominently this month in two high-profile sexual harassment matters: the Wynn Resorts investigation and the various legal proceedings following the allegations against Harvey Weinstein. Both in-house and outside counsel for companies with senior executives facing such allegations should take note of these developments, as they call into question whether the use of NDAs could in certain circumstances amount to investigatory obstruction or a violation of ethical obligations.
Continue Reading New Scrutiny for NDAs in Sexual Harassment Matters
In the much-awaited Judgment No. 63, filed on March 21, 2019 and published on March 27, 2019 on Issue No. 13 of the Italian Official Gazette, the Italian Constitutional Court found that the principle of retroactive application of the most favorable law applies to the administrative penalties set forth under Legislative Decree No. 58 of…
On March 25, 2019, partners Lev Dassin and Arthur Kohn participated in a webcast hosted by The Conference Board, entitled “Corporate Prosecutions: What Companies, Boards and Executives Need to Know.” Daniel Gitner, a partner at Lankler Siffert & Wohl, also participated on the panel.
The panelists and moderator Doug Chia, executive director of The Conference Board, began by discussing corporate prosecutions generally, including the history of corporate prosecutions and how DOJ attitudes regarding corporate prosecutions have changed over time. Dassin explained that the DOJ has more recently refocused its attention on prosecuting individuals engaged in corporate misconduct.
Continue Reading Cleary Partners Participate in Panel Discussion on Corporate Prosecutions
On April 3, 2019, staff of the Securities and Exchange Commission released (1) a framework providing principles for analyzing whether a digital asset constitutes an investment contract, and thus a security, as defined in SEC v. W.J. Howey Co. and (2) a no-action letter permitting TurnKey Jet, Inc., without satisfying registration requirements under the Securities…
On March 27, 2019, the Supreme Court issued a 6-to-2 decision in Lorenzo v. SEC focusing on the distinction between “making” a false statement under Exchange Act Rule 10b-5(b) and engaging in deceptive conduct—so-called “scheme liability”—under Rules 10b-5(a) and (c).
The Court upheld a D.C. Circuit majority decision concluding that the SEC could hold an…
On March 6, 2019, the U.S. Commodity Futures Trading Commission (“CFTC”) Enforcement Division released an advisory (the “Advisory”) on self-reporting and cooperation for violations of the Commodity Exchange Act (“CEA”) that involve foreign corrupt practices.[1] The Advisory lays out guidelines for companies or individuals “not registered (or required to be registered) with the CFTC” to receive significant cooperation credit for voluntarily and timely disclosing CEA violations involving foreign corrupt practices.[2] Indeed, where such disclosure is followed by “full cooperation and appropriate remediation” and other measures, the Division of Enforcement will extend a presumption that no civil monetary penalties be imposed.[3] Moreover, while registrants—which are subject to “independent reporting obligations”—will not benefit from such a presumption, cooperation may still garner “substantial reduction in the civil monetary penalty.”[4]
The Advisory is the latest signal of the CFTC’s efforts over the last two years to more clearly define the benefits of voluntary cooperation with the Agency.[5] This may indicate that the CFTC is taking an increased interest in corruption cases related to the commodities or swaps markets.
Continue Reading CFTC Enforcement Division Issues New Advisory on Self-Reporting and Cooperation
WE VALUE YOUR PRIVACY
This site uses cookies and full details are set out in our Cookie Policy. Essential Cookies are always on; to accept Analytics Cookies, click "I agree to all cookies." Learn more about cookies.
