Business Crimes Hotline

New York

Required Code of Conduct Condition of Resolution in Student Lending Investigation

The New York and Florida Attorney General's Offices jointly entered into an Assurance of Discontinuance Agreement with another student lender, this time a Florida-based company having agreements with approximately 63 colleges and universities. While the company did not admit, and in fact expressly denied, any violation of law, the agreement calls for the institution of a detailed code of conduct resulting in the discontinuation of certain marketing practices, referral techniques and business relationships with universities and/or university athletic departments, as well as continued cooperation with the on-going investigation. According to the New York Attorney General's Office, this investigation has resulted in previous agreements with 12 other student loan companies. See In the matter of Student Fin. Servs., et al., Dec. 11, 2007 (available at http://www. oag.state.ny.us/press/ 2007/dec/SFS%20AOD%20FINAL%20EXECUTED.pdf).

Oregon

Individual Enforcement Actions a Priority in FCPA Prosecution

Over a year after Schnitzer Steel paid in excess of $15 million to resolve concurrent enforcement actions by the SEC and Department of Justice (DOJ) under the Foreign Corrupt Practices Act (FCPA), the Commission reminded executives that a corporate settlement can be just the beginning. On Dec. 13, 2007, the former Schnitzer Chairman and CEO resolved an SEC ' 13 enforcement action, and agreed to pay $169,863.79 in disgorgement, and over $16,000
in prejudgment interest, as well as a $75,000 civil penalty. SEC v. Robert
W. Philip, No. CV 07-1836 (MO) (D.Or.Dec. 13, 2007) (available at http://www.sec. gov/litigation/litre leases/2007/lr20397.htm).

United Nations

Disgorgement in ' 13 Enforcement, Wire Fraud Charges and Compliance Under FCPA Provisions

The sanction of disgorgement, once a practice thought limited to enforcement action ' 30, can now be seen prominently in several SEC FCPA ' 13 actions. Among other fines and civil penalties in concurrent DOJ and SEC resolutions of ' 13 actions, the Commission has sought and obtained disgorgement of profits ranging from $2 million to $25 million. Also of significance is the recent inclusion of a conspiracy to commit wire fraud charge in the Ingersoll-Rand action. The recent resolutions also have noteworthy on-going compliance dictates that range, in cost and intrusiveness, from a requirement to under take FCPA compliance activities, to the imposition of a three-year independent compliance monitor. See, e.g., Agreement, Textron Inc., Aug. 22, 2007 (available at http://www.abanet.org/intlaw/fall07/materials/TextronDPA.pdf).

Florida

SEC and FBI Join Forces in Kickback Sting Operation

The U.S. Attorney's Office for the Southern District of Florida, the FBI and the SEC joined forces in a recent sting operation targeting illegal kickbacks to hedge fund managers. Authorities used an undercover FBI agent posing as a hedge fund manager to gather evidence, which has resulted in five indictments and five Commission complaints. Defedants are alleged to have violated securities laws, including Section 17(a)(1) of the Securities Act of 1933 and SEC Rule 10b-5, plus mail and wire fraud. See, e.g., Compl. SEC v. Vincent Cammarata, No. 07-81163- KAM (S.D.F.L. Dec. 7, 2007); Indictment, U.S. v. Gjonbalaj and Haynes, 07-CR-80177-KLR, (S.D.F.L. Dec. 4, 2007).

New York

Required Code of Conduct Condition of Resolution in Student Lending Investigation

The New York and Florida Attorney General's Offices jointly entered into an Assurance of Discontinuance Agreement with another student lender, this time a Florida-based company having agreements with approximately 63 colleges and universities. While the company did not admit, and in fact expressly denied, any violation of law, the agreement calls for the institution of a detailed code of conduct resulting in the discontinuation of certain marketing practices, referral techniques and business relationships with universities and/or university athletic departments, as well as continued cooperation with the on-going investigation. According to the New York Attorney General's Office, this investigation has resulted in previous agreements with 12 other student loan companies. See In the matter of Student Fin. Servs., et al., Dec. 11, 2007 (available at http://www. oag.state.ny.us/press/ 2007/dec/SFS%20AOD%20FINAL%20EXECUTED.pdf).

Oregon

Individual Enforcement Actions a Priority in FCPA Prosecution

Over a year after Schnitzer Steel paid in excess of $15 million to resolve concurrent enforcement actions by the SEC and Department of Justice (DOJ) under the Foreign Corrupt Practices Act (FCPA), the Commission reminded executives that a corporate settlement can be just the beginning. On Dec. 13, 2007, the former Schnitzer Chairman and CEO resolved an SEC ' 13 enforcement action, and agreed to pay $169,863.79 in disgorgement, and over $16,000
in prejudgment interest, as well as a $75,000 civil penalty. SEC v. Robert
W. Philip, No. CV 07-1836 (MO) (D.Or.Dec. 13, 2007) (available at http://www.sec. gov/litigation/litre leases/2007/lr20397.htm).

United Nations

Disgorgement in ' 13 Enforcement, Wire Fraud Charges and Compliance Under FCPA Provisions

The sanction of disgorgement, once a practice thought limited to enforcement action ' 30, can now be seen prominently in several SEC FCPA ' 13 actions. Among other fines and civil penalties in concurrent DOJ and SEC resolutions of ' 13 actions, the Commission has sought and obtained disgorgement of profits ranging from $2 million to $25 million. Also of significance is the recent inclusion of a conspiracy to commit wire fraud charge in the Ingersoll-Rand action. The recent resolutions also have noteworthy on-going compliance dictates that range, in cost and intrusiveness, from a requirement to under take FCPA compliance activities, to the imposition of a three-year independent compliance monitor. See, e.g., Agreement, Textron Inc ., Aug. 22, 2007 (available at http://www.abanet.org/intlaw/fall07/materials/TextronDPA.pdf ).