Category: White Collar Crime
UK Publishes Guidance on Failure to Prevent Fraud: Companies Without “Reasonable Prevention Procedures” Could Be Held Criminally Liable
On 6 November 2024, the UK government published guidance in respect of the failure to prevent fraud offence, which was introduced in the Economic Crime and Corporate Transparency Act 2023 (ECCTA).Under this offence, companies may be held criminally liable if they did not have ‘reasonable prevention procedures’ in place when a fraudulent act was […]
DOJ Focuses on AI, Emerging Tech in Newly Issued Guidance Updates for Evaluating Corporate Compliance Programs
On September 23, 2024, the Criminal Division of the US Department of Justice (DOJ) issued an updated Evaluation of Corporate Compliance Programs (ECCP). The updated ECCP emphasizes that companies should address risks associated with new technologies, such as artificial intelligence (AI). The updated ECCP also highlights the importance of incentivizing […]
EDNY Launches New Whistleblower Non-Prosecution Pilot Program
On September 17, 2024, the US Attorney’s Office for the Eastern District of New York (EDNY) announced a new pilot program that offers non-prosecution agreements (typically referred to as NPAs) to individuals who voluntarily disclose information about certain corporate crimes to EDNY. Officials explained that the program, which took immediate […]
A Sword and A Shield: How SCOTUS Expert Testimony Rulings May Benefit Corporate Defendants
The US Supreme Court decided several criminal procedure cases during the 2023 – 2024 term – including Diaz v. United States, 144 S. Ct. 1727 (2024) and Smith v. Arizona, 144 S. Ct. 1785 (2024) – which have relevance and strategic value to corporate defense, despite being facially outside the […]
DOJ Launches New Incentive Program for Corporate Whistleblowers
The US Department of Justice has officially launched its whistleblower rewards pilot program, which offers financial incentives to individuals who report corporate misconduct to the DOJ and meet certain criteria. Deputy Assistant Attorney General Nicole Argentieri has made clear that the DOJ is attempting to break down barriers between whistleblowers […]
Federal Court Dismisses Bulk of SEC’s Complaint Against SolarWinds in Cyberattack Case
On July 18, 2024, US District Judge Paul Engelmayer of the Southern District of New York issued a detailed 107-page opinion and order dismissing most of the US Securities and Exchange Commission (SEC) case against SolarWinds and its chief information security officer (CISO). The SEC’s amended complaint alleged that SolarWinds and its […]
The Prisoner’s Dilemma Comes for Corporate Crime
As part of its continued effort to incentivize the voluntary self-disclosure of corporate crime, the Criminal Division of the Department of Justice (DOJ) announced a pilot program in mid-April 2024 that will offer non-prosecution agreements (NPAs) to individuals who voluntarily self-disclose information about certain corporate crimes. This program, along with […]
Fatal Flaws in SEC’s Amended Complaint Against SolarWinds
In March 2024, a coalition of more than 50 cybersecurity leaders and organizations called for dismissal of an amended complaint by the Securities and Exchange Commission (SEC) against SolarWinds and its chief information security officer (CISO), Tim Brown. Amici from the business community and the software industry, as well as […]
Addressing Workplace Complaints: A Critical Step in Light of Whistleblower Incentives
Prosecutors and regulators have recently offered significant financial rewards to whistleblowers to come forward in an effort to spur corporate enforcement. But whistleblowers aren’t made overnight – many times they are persuaded to act by the perception that management is ignoring their complaints. In light of increased efforts by prosecutors […]
Ephemeral Messaging Isn’t a Fleeting Interest for Regulators
It has been one year since the Department of Justice announced updated guidance on use of ephemeral messaging platforms for corporate communications. Since then, the DOJ and other regulators continue to sound alarms about these tools, which automatically erase conversations between parties. Their stance is clear: Companies with strong policies will be […]