Last month, the Supreme Court granted certiorari in United States ex rel. Polansky v. Executive Health Resources, Inc., a case presenting the question whether the federal government forfeits the authority to dismiss False Claims Act (FCA) suits brought in its name if it first declines to intervene in them.
Subject to Inquiry
Latest from Subject to Inquiry
Broker-Dealer and Investment Adviser Account Recommendations
By Brian Baltz & John Ayanian
This article was originally published in “The Review of Securities & Commodities Regulation,” Vol. 55 No. 13, July 20, 2022.
Department of Justice Criminal Chief Points to Prevention as Key Aspect of Corporate Compliance
The Assistant Attorney General and head of the Department of Justice’s Criminal Division recently sat for an interview with the Wall Street Journal where he provided important insight into the Department’s increased focus on corporate compliance.
Drawing on his experience in the U.S. Attorney’s office and as the Chief Compliance Officer at a Fortune 500…
DOJ and Aerojet Settle for $9 Million in Qui Tam Cybersecurity False Claims Act Case
On July 8, 2022, the U.S. Department of Justice announced a $9 million
settlement with federal government contractor Aerojet Rocketdyne, Inc. for
alleged violations of the False Claims Act in a case pending in the Eastern
District of California. The settlement results from alleged false
statements by Aerojet related to compliance with Department of Defense…
Court Holds U.S. Wire Fraud Statute Reaches Foreign Defendant’s Conduct
The federal wire fraud statute has a far-reaching scope, allowing prosecutors to go after conduct as varied as investor fraud to college admissions scandals. In late June, the Fourth Circuit U.S. Court of Appeals arguably broadened that scope even further by affirming a wire fraud conviction for a defendant who devised the scheme from…
DOJ’s Public Struggles with Electronic Evidence Highlights the Need for Counsel to Formally Demand Discovery Early and Often
DOJ’s dismissal last week of a Foreign Corrupt Practices Act case in Boston is the latest in a string of bad outcomes for the government due to discovery mishaps. While the government works to revise its discovery policies and seek resources to collect, review, and analyze the vast amount of electronic evidence attendant to nearly…
Less is More? DOJ Signals Shift to More Targeted Evidence Collection
For a corporation receiving a grand jury subpoena, the most difficult (and expensive) part of a U.S. Department of Justice (DOJ) inquiry is often sifting through corporate data to find relevant material. That is proving to be increasingly burdensome to prosecutors as well—not just because it costs DOJ time and resources to review extensive data…
Twitter to Pay $150M for Violating 2011 FTC Order Regarding Misrepresentation of its Privacy and Security Practices
On May 25, 2022, the Federal Trade Commission (FTC) announced that it, along with the Department of Justice, fined Twitter $150 million for violating a 2011 agreement the company had with the Commission. Under the 2011 FTC order, Twitter agreed that it would protect the integrity of nonpublic consumer information, including users’ phone numbers and…
CFPB’s New Interest in Examining Fintechs is Likely to Mean More Naming and Shaming by the Agency
On April 25, 2022, the Consumer Financial Protection Bureau (CFPB) announced that it will begin examining nonbank “covered persons” that it has determined pose risks to consumers. The CFPB has had this authority since its inception. The Dodd-Frank Act empowered the CFPB to examine this category of nonbanks, which might include fintech firms that are…
DOJ and SEC Kick Off the Second Quarter with Major FCPA Settlement with International Waste Management Company
On April 20, 2022, the U.S. Department of Justice (DOJ) and Securities and Exchange Commission (SEC) separately announced that Stericycle Inc. (Stericycle), an international waste management company headquartered in Lake Forest, Illinois, has agreed to pay more than $84 million to resolve parallel investigations by authorities in the United States and Brazil. The investigation is…