The False Claims Act After <i>Escobar:</i> A Three-Part Test
September 01, 2016
In a unanimous opinion in <I>Universal Health Servs. v. United States ex rel. Escobarr</I>, 195 the Supreme Court recently provided a new framework for assessing false certification liability under the False Claims Act (FCA).
The Real-World Impact of the Yates Memo
August 01, 2016
The DOJ is focused on prosecuting individuals who are responsible for corporate wrongdoing, and corporations must be prepared to provide all available facts about the individuals responsible for the wrongdoing if they wish to receive any cooperation credit from the DOJ. This is the thrust of the DOJ's "Yates Memo."
In the Courts
August 01, 2016
Discussion of a case in which the Supreme Court vacated the conviction of ex-Virginia Governor Bob McDonnell.
Recent Guidance Regarding Deduction of Fines
August 01, 2016
Internal Revenue Code ' 162 provides: "No deduction shall be allowed under subsection (a) for any fine or similar penalty paid to a government for the violation of any law." The controversies that continue to arise under ' 162(f) are illustrated by two memoranda released within the past few months.
Foreign Whistleblowers Fuel SEC Enforcement Activity, Raising the Stakes for Global Corporate Compliance
July 01, 2016
An "eligible" whistleblower is a person who voluntarily provides original information about a possible violation of the federal securities laws that has occurred, is ongoing, or is about to occur. If that information leads to a successful SEC action resulting in an order of monetary sanctions over $1 million, the whistleblower(s) can collect their bounty. Over the lifetime of the program, the SEC has addressed more than 390 award claims and has awarded more than $67 million to 29 individuals, known as claimants, in connection with 16 actions.
Antitrust and Corruption
July 01, 2016
In March 2016, nine Brazilian executives received prison sentences from a Brazilian court ranging from 10 to 19 years for their roles in the $35 million Petrobras Scandal, a scheme among construction and engineering companies to submit fraudulent bids to, and bribe agents of, the state-owned oil company, Petroleo Brasileiro SA (Petrobras). Several former Petrobras directors and a manager were also sentenced, some to more than 20 years in prison.
Bonus Compensation Clawbacks
July 01, 2016
In an emerging trend, chief executive officers and chief financial officers of companies settling U.S. Securities and Exchange Commission (SEC) financial reporting cases are personally paying back bonuses and other incentive-based compensation, despite the absence of accusations of personal misconduct or formal SEC actions against them individually.
Business Crimes Hotline
July 01, 2016
The IRS released a Chief Counsel Advice holding that disgorgement, the remedy commonly used to generate large monetary settlements in white-collar enforcement actions with the Securities SEC, was not tax deductible.
