Last week, Deputy Attorney General Lisa O. Monaco delivered remarks on corporate criminal enforcement, announcing revisions to DOJ’s policies for addressing corporate ethics and compliance matters. These changes reflect an increased focus on holding individuals accountable for corporate wrongdoing, guidance on handling corporate recidivism, further transparency regarding the appropriateness and necessity of monitorships; incentives for voluntary self-disclosure of misconduct; and a recognition of compensation related incentives to garner a corporate culture of compliance.… More
On Friday, September 16, 2022, the Department of Justice (“DOJ”) announced a formalized focus on digital asset abuse by publically releasing a 46 page report on the Role of Law Enforcement in Detecting, Investigating, and Prosecuting Criminal Activity Related to Digital Assets (the “Report”). DOJ describes this Report as a “companion” to its other recent report, How to Strengthen International Law Enforcement Cooperation For Detecting, Investigating And Prosecuting Criminal Activity Related To Digital Assets,… More
On August 31, 2022, in a lengthy order, Judge Timothy Hillman of the U.S. District Court of Massachusetts denied motions to dismiss that were filed by multiple defendant banks (the “Banks”) in an attempt to avoid liability for allegedly aiding and abetting a multibillion-dollar Ponzi scheme by TelexFree. While the Banks raised a variety of issues, the judge’s rulings regarding the “substantial assistance” element of a tortious aiding and abetting claim is particularly noteworthy.… More
Federal prosecutors from the Southern District of New York recently charged Nathan Chastain with wire fraud and money laundering in connection with a purported scheme to illegally profit from sales and purchases of Non-Fungible Tokens (“NFTs”). This landmark criminal case marks the first time federal prosecutors have pursued criminal action to police insider trading in the NFT marketplace.
Chastain is a former employee of Ozone Networks,… More
In the 2022-2023 term, the Supreme Court will address the definition of “property” under the federal wire fraud statute, which prohibits a person from “obtaining money or property by means of false pretenses.” 18 U.S.C. § 1343. The definition of “property” for the purposes of this statute has been much debated—need “property” be economic in nature? Must it be tangible? Can one’s admission to a university constitute “property”? … More
- The Second Circuit held that Hoskins, a foreign national, had not acted as an “agent for a domestic concern” and therefore fell outside of the jurisdictional reach of the Foreign Corrupt Practices Act (“FCPA”).
- The ruling will make it more difficult for the Government to prosecute individuals located outside the United States under the FCPA.
- Multinational companies should clearly and specifically define the scope of responsibilities and line of reporting for foreign executives located abroad whose roles relate to the operations of U.S.…
On July 13, 2022, the United States Court of Appeals for the First Circuit ruled that the whistleblower protections contained in Section 806 of the Sarbanes-Oxley Act (SOX) do not apply to employees who report potential violations of the Foreign Corrupt Practices Act (FCPA). The ruling in Baker v. Smith & Wesson, Inc., 40 F.4th 43 (1st Cir. 2022) is the second recent decision narrowing the important whistleblower protections of the Act,… More
On August 1, 2022, the New York Department of Financial Services (“DFS” or the “Department”) secured its first enforcement win against a cryptocurrency platform, Robinhood’s crypto trading arm Robinhood Crypto, LLC.
Robinhood Crypto is a wholly-owned subsidiary of Robinhood Markets, Inc. (RHM). RHM allows users to trade stocks on a commission-free basis through its broker-dealer subsidiary, Robinhood Financial, LLC (RHF). Robinhood Crypto allows RHF customers to trade cryptocurrencies using customers’ U.S.… More
- The U.S. Securities and Exchange Commission (“SEC”) and U.S. Department of Justice (“DOJ”) have brought the first-ever insider trading actions involving cryptocurrency against a former manager of Coinbase, one of the largest U.S. crypto asset trading platforms, and two tippees for sharing or trading upon confidential information relating to the planned listing of various cryptocurrencies on Coinbase.
- The SEC’s securities fraud charges are based on its longstanding position that certain cryptocurrencies are investment contracts and therefore “securities” subject to the SEC’s jurisdiction.…
- OFAC imposes restrictions on the importation of gold from the Russian Federation
- OFAC and the U.S. Department of State impose new sanctions on Russian entities and individuals with a focus on the Russian defense and aerospace industries
- The U.S. Department of Commerce’s Bureau of Industry and Security imposes additional export controls on entities identified as attempting to evade U.S. export controls and sanctions on Russia and issues a joint alert with FinCEN warning U.S.…