Examining the SEC's Rulemaking Process
March 01, 2022
SEC Chair Gary Gensler's agenda raises important questions of both substance and process, including the technical, but very important, matter of SEC rulemaking: What is required for the Commission to create new rules, or change well-established rules? The answers to these questions, in turn, may determine what can realistically be accomplished given timing and political constraints.
DOJ 2021 Fraud Section Report Shows COVID Effect Dissipating
March 01, 2022
Although billed as an annual look-back, the U.S. Department of Justice Criminal Division's Fraud Section annual report provides important insight for individuals, entities, and their lawyers as to where the Fraud Section is setting its sights for 2022 and beyond.
Mail and Wire Fraud Post 'Kelly v. United States'
February 01, 2022
This article discusses the holding by the U.S. Supreme Court Kelly v. U.S. and explains its impact on subsequent cases and concludes with a discussion of the "right to control" theory of mail and wire fraud, which has been challenged in light of the Kelly decision.
Anti-Bullying and Corporate Responsibility
February 01, 2022
As boards implement anti-bullying policies to protect against a toxic management-to-employee workplace environment, they should also consider extending similar protection to the vital interactions between the general counsel and the CEO.
Insurance Fraud Remains Key Area of Government Focus
February 01, 2022
During the past year, there were important government reports examining the defrauding of health insurance programs, new trends and government initiatives relating to fraud, and insurance fraud cases involving significant numbers of defendants. When added together, it is not difficult to understand why insurance fraud remains such a key area of focus for government officials, carriers and attorneys.
Fourth Circuit: Shareholders Face High Bar In Demonstrating Scienter
February 01, 2022
A recent Fourth Circuit decision held that shareholders must meet a high bar in demonstrating scienter to avoid early dismissal of the case. The decision also shows the fact-intensive approach courts use to distinguish fraudulent statements from those that, even if mistaken, were made innocently.
With 'Great Resignation', Corporations Need to Prepare for the Great Investigation
January 01, 2022
Major crisis events, such as political uprisings or financial downturns, are typically followed by an increase in fraud in the business sector and heightened risk to corporate IP and other sensitive information. Anecdotally, this seems to be proving out again in the recent and ongoing fallout from the pandemic. Even before this Great Resignation movement, corporations across the globe were reporting increases in suspicious activity, data leakage, IP theft and other data risks stemming from departing employees and remote workers.
Potential Criminal and Civil Penalties of Digital Asset Exchanges
January 01, 2022
This article discusses the potential criminal and civil penalties that companies can face if their employees engage in insider trading in digital assets, and suggests several measures that exchanges can take to reduce their exposure from such risks.
