On January 9, 2009, the U.S. Department of Justice (see press release) and the New York County District Attorney's Office ("NYDA") (see press release) announced that Lloyds TSB Bank plc ("Lloyds") agreed to forfeit $350 million and take other actions to resolve its liability for violating the International Emergency Economic Powers Act ("IEEPA") and U.S.
Client Alert | January 20, 2009
I. Hedge Fund Enforcement Update A. Introduction 1. 2008--A Watershed Year in Hedge Fund Enforcement By virtually any measure, 2008 was a watershed year on the hedge fund enforcement front. Driven by the turmoil that has reshaped our capital and credit markets, enforcement efforts soared to new heights.
Client Alert | January 9, 2009
I. Introduction Today's headlines are riddled with allegations of fraud and fraudulent schemes--against investors, markets, homeowners, individuals, corporations, and the government.
Client Alert | January 8, 2009
Introduction The dramatic surge in worldwide criminal antitrust enforcement over the last decade continued at a remarkable pace in 2008, with no signs of ebbing on the horizon.
Client Alert | January 7, 2009
2008 – A Dynamic Year in Corporate Deferred Prosecution AgreementsIn the post-Enron and WorldCom era, the U.S. Department of Justice ("DOJ") often uses corporate deferred prosecution agreements ("DPAs") to resolve federal criminal investigations.
Client Alert | January 6, 2009
The Status of Forces Agreement (SOFA) between the United-States and Iraq was scheduled to take effect on January 1, 2009. Since the SOFA agreement became final on November 28, 2008, contractors operating in Iraq have had numerous questions on how the SOFA will be implemented and what effect it will have on their business operations. One of the primary concerns for U.S.
Client Alert | January 5, 2009
By any measure, 2008 was a monster year in Foreign Corrupt Practices Act ("FCPA") enforcement. With thirty-three enforcement actions between the Department of Justice ("DOJ") and Securities and Exchange Commission ("SEC"), the statute's dual enforcers, 2008 was the second busiest numerical year on the books, trailing only 2007. But beyond the numbers (after all, with the massive Siemens resolution, 2008 dwarfs all other years combined in fines and disgorgement), 2008 saw the FCPA's enforcement regime mature like never before. There were no unimportant FCPA enforcement actions this year. Whether the trend was increasingly aggressive enforcement against individuals, ramped up international coordination, the joining of FCPA prosecutions wi
Client Alert | January 5, 2009
Position on Waiver of Attorney-Client Privilege Follows Trend of DOJ, SEC The Financial Industry Regulatory Authority ("FINRA") has recently provided guidance on the extent to which "extraordinary cooperation" by a firm or individual in an investigation can influence FINRA's enforcement decisions. In particular, with respect to waiver of the attorney-client privilege, the guidance states that waiver or non-waiver of the privilege will not be considered in whether to grant credit for cooperation, but rather it is the assistance in "uncovering the facts in an investigation" that will yield credit for cooperation. In this respect, FINRA follows the trend recently set by the Securities and Exchange Commission and the Department of Justice. Despit
Client Alert | December 5, 2008
On November 16, 2008, the White House and the Iraqi Cabinet approved a Status of Forces Agreement (SOFA), subject to the approval of the Iraqi Parliament. On November 27, 2008, the Iraqi Parliament approved the SOFA by a vote of 149 to 35. This new SOFA subjects U.S.
Client Alert | December 1, 2008
A final rule issued on November 12, 2008, amends the Federal Acquisition Regulation ("FAR") to require mandatory disclosure by federal government contractors of certain violations of federal criminal law and the civil False Claims Act. (Text of final rule available here.) The new rule also mandates that certain federal government contractors create a business ethics awareness and compliance program, as well as an internal control system. Federal government contractors that currently have compliance and control systems in place will find it necessary to review and potentially to update their existing programs. Contractors that violate the disclosure and compliance mandates included in the new rule face possible suspension or debarment. (For more infor
Client Alert | November 13, 2008
On October 23, 2008, the United States Court of Appeals for the Second Circuit issued a published and precedential decision in Morrison v. National Australia Bank (Docket Number 07-0583-cv), which left open the door for applications of the anti-fraud provisions of American securities laws in so-called "Foreign-Cubed" securities cases--that is, cases brought by foreign plaintiffs, against a foreign company, arising out of a foreign securities transaction. Although the Court declined to exercise jurisdiction because of the particular facts of the National Australia Bank case, the Court also declined to adopt a bright-line rule barring jurisdiction in all such cases. Facts and Procedural Posture of National Australia BankNational Australia Bank ("NAB") is Austr
Client Alert | October 29, 2008
The SEC's Division of Enforcement issued its first-ever manual this week. Intended as a reference for Enforcement Division staff, the Manual provides important insight into SEC decision-making and processes on such key matters as evaluating possible investigations, opening and closing matters, issuing Wells letters, communicating with senior SEC officials, responding to document subpoenas, "witness assurance" letters, contacting current and former employees, and respecting the attorney-client privilege during an investigation. It will be an essential guide for anyone with a matter before the Division of Enforcement.
Client Alert | October 10, 2008
The conviction in August of two former Bank of China managers and their wives in Las Vegas for money laundering and other crimes illustrates the continuing vulnerability of casinos to money laundering.
Client Alert | October 3, 2008
On Friday, September 19, 2008, the Securities and Exchange Commission announced a "sweeping expansion" of its ongoing investigation of possible manipulation of the price of equity securities of financial institutions, to determine whether certain market participants engaged in illegal activity to enhance the value of short positions. SEC Chairman Christopher Cox stated that the investigation will look into the activity of investors with significant short positions in equity markets and positions in credit default swaps. This expansion, according to Chairman Cox, supplements ongoing SEC investigations concerning the origination and securitization of sub prime mortgage loans, the involvement of credit rating agencies and insurers in the securitization proce
Client Alert | September 24, 2008
A key Senate investigative body has issued its latest findings in its investigation of alleged abusive tax practices, which is now in its seventh year. The investigation has examined alleged offshore tax havens, the way tax shelters are promoted, how assets are "hidden" offshore, and, most recently, dividend tax abuse. While it is not clear where the investigation will focus next, it is highly likely that it will continue.
Client Alert | September 22, 2008
In a speech delivered by Deputy Attorney General Mark Filip to the New York Stock Exchange on August 28, 2008, the Department of Justice announced sweeping changes to the factors federal prosecutors may consider in determining whether to bring criminal charges against business organizations.
Client Alert | September 2, 2008
Washington, D.C. partner F. Joseph Warin and associate Patrick F. Speice are the authors of "Go Directly to Jail: Sentencing of Individual Criminal Defendants in Foreign Corrupt Practices Act Cases" [PDF] published in the September issue of Bloomberg Law Reports.
Article | September 1, 2008
New York partner Lee G. Dunst is the author of "The blame game," [PDF] published in the July 31, 2008 issue of Legal Week. Reprinted with permission, © 2008, Legal Week.
Client Alert | July 31, 2008
Faced with continuing Congressional interest in legislation aimed at preventing federal prosecutors and other enforcement attorneys from seeking privileged information, the Justice Department has announced that it will again revise its policy regarding the investigation and prosecution of business organizations. The DOJ's proposals will restrict the ability of federal prosecutors to seek privileged information from companies, and will have an immediate impact on the ways in which businesses cooperate with government investigations. The current Principles of Federal Prosecution of Business Organizations, outlined in the "McNulty Memo," have been the focus of Congressional and public criticism, and Pennsylvania Senator Arlen Specter has spear-headed legislation ai
Client Alert | July 11, 2008
The frenetic pace of Foreign Corrupt Practices Act ("FCPA") enforcement set in 2007 has carried through the first half of 2008. Mid-year prosecutions are up – substantially so – from last year's record-setting totals. And corporate disclosures and media reports of ongoing investigations evidence that this trend of continually increasing enforcement is here to stay for the near future. This client update provides an overview of the FCPA and other foreign bribery enforcement activities during the first half of 2008, a discussion of the trends we see from that activity, and practical guidance to help companies avoid or limit liability under these laws. A collection of Gibson Dunn's publications on the FCPA, including prior enforcement updates and more in-
Client Alert | July 7, 2008
New York associate Matthew Benjamin is a co-author of "Going It Alone: The Costs of Unilateral Law Enforcement" published by ALM Law Journal Newsletters' Business Crimes Bulletin.Reprinted with permission, © 2008, ALM Properties, Inc.
Client Alert | June 1, 2008
OVERVIEW Foreign Corrupt Practices Act (FCPA) enforcement has proliferated dramatically in recent years. In addition to new criminal and civil enforcement activities brought by the Department of Justice and the SEC, private civil actions now often involve the FCPA.
Client Alert | May 21, 2008
On April 4, 2008, the United States Court of Appeals for the Ninth Circuit reversed the much-discussed Oregon federal court decision, United States v. Stringer, which had dismissed a criminal indictment due to the government's violation of the defendant's due process rights resulting from "egregious" behavior in conducting a parallel civil-criminal investigation.
Client Alert | April 14, 2008
New York Partner Lee Dunst is the author of "Learning from High-Profile Perjury Cases" [PDF] published in the March 24, 2008 issue of The National Law Journal.
Client Alert | March 24, 2008
Los Angeles partners Michael Farhang and Debra Wong Yang were panelists in the "White Collar Roundtable 2008" [PDF] published in the March 2008 issue of California Lawyer.
Client Alert | March 3, 2008
2007 -- A "Landmark Year" in FCPA Enforcement "2007 is by any measure a landmark year in the fight against foreign bribery." When Mark F. Mendelsohn, Deputy Chief of the Fraud Section in the Department of Justice's Criminal Division ("DOJ") and the government's top criminal Foreign Corrupt Practices Act ("FCPA") enforcer, opened the 2007 ACI FCPA Conference with this bold statement, not a single eyebrow rose across the ballroom filled with members of the ever-growing FCPA Bar.
Client Alert | January 4, 2008
Washington, D.C. Partner Amy Rudnick and New York Associate Anthony Mahajan are authors of "Internet Gambling Rules Would Enlist Banks to Fight Uphill Battle" [PDF] published in BNA's Banking Report.
Article | December 17, 2007
On December 10, 2007, the Supreme Court issued two 7-2 decisions clarifying that federal district judges have significant discretion to impose sentences below (or above) those called for under the Federal Sentencing Guidelines.
Client Alert | December 12, 2007
Washington, D.C. Partner Joseph Warin and Associate Andrew Boutros are the authors of "FCPA Investigations: Working Through A Media Crisis" [PDF] published in the December 2007 issue of White Collar Crime.
Client Alert | December 1, 2007
On November 14, 2007, for the first time in several years, the Department of the Treasury, Financial Crimes Enforcement Network ("FinCEN"), issued Bank Secrecy Act ("BSA") compliance guidance for casinos and card clubs, Frequently Asked Questions: Casino Recordkeeping, Reporting, and Compliance Program Requirements (FIN-2007-G005). The guidance, which is in the form of twenty-three questions and answers, addresses questions about what types of gaming establishments are subject to the BSA requirements and questions about compliance with the BSA requirements by casinos and card clubs, including currency transaction reporting (31 C.F.R.
Client Alert | November 26, 2007
Partners F. Joseph Warin and Robert C. Blume and Associate J. Taylor McConkie are the authors of "View from here: Countering corruption" published in the October 25, 2007 issue of Legal Week.
Client Alert | October 25, 2007
New York Of Counsel Alexander H. Southwell and Associate Oliver Olanoff are the authors of "‘Swift’ Prosecutions of Corporations And Executives" [PDF] published in the September 2007 issue of Business Crimes Bulletin.
Client Alert | September 4, 2007
Partner Robert C. Blume and Associate J. Taylor McConkie are the authors of "Navigating the Foreign Corrupt Practices Act: The Increasing Cost of Overseas Bribery" [PDF] published in the August 2007 issue of The Colorado Lawyer.
Client Alert | August 1, 2007
On June 21, 2007, the Supreme Court issued an 8-1 decision in Rita v. United States, No. 06-5754, affirming the ability of appellate courts to use a presumption of reasonableness where the sentences they are reviewing were imposed within the applicable range under the Federal Sentencing Guidelines.
Client Alert | June 25, 2007
Washington, D.C. Partner Joseph Warin and Of Counsel Peter Jaffe are the authors of "Rolling the Dice in Corporate Fraud Prosecutions" [PDF] published in the Spring 2007 issue of Litigation Magazine.Reprinted with permission, Litigation Magazine, Volume 33 Number 3, Spring 2007, © 2007 American Bar Association.
Client Alert | May 30, 2007
On successive days this month, the Securities and Exchange Commission and the Department of Justice announced major enforcement actions alleging insider trading in connection with merger and acquisition activity.
Client Alert | March 15, 2007
Washington D.C. partner F. Joseph Warin and Denver partner Robert C. Blume are the authors of "The Foreign Corrupt Practices Act: Recent Developments, Trends, and Guidance" published in the February 2007 issue of Insights.
Client Alert | February 10, 2007
This client update provides an overview of Foreign Corrupt Practices Act ("FCPA") enforcement activities in 2006, a discussion of the trends we see from that activity, and practical guidance to help companies avoid or limit FCPA liability.FCPA OverviewThe FCPA’s anti-bribery provisions make it illegal to make payments of money or anything of value to any foreign government official or foreign political party in order to obtain or retain business or secure any improper advantage. The anti-bribery provisions apply to "issuers," "domestic concerns," and "any person" that violates the FCPA while in the territory of the United States. The term "issuer" covers any business entity that is registered under 15 U.S.C.
Client Alert | February 7, 2007
Although there has been much attention focused on both recent changes to the Federal Rules of Civil Procedure governing discovery of electronic documents, and the proposed changes to Federal Rule of Evidence 502, governing the scope of the attorney-client privilege, clients should not overlook another recent Federal Rule change of great significance.
Client Alert | February 5, 2007
The World Bank has announced that its Board of Executive Directors has approved a new Voluntary Disclosure Program intended to encourage entities to report fraudulent and corrupt practices involving projects financed or supported by the World Bank.
Client Alert | October 3, 2006
The United States Sentencing Commission voted unanimously on April 5 to eliminate language from the Federal Sentencing Guidelines that requires corporations to waive the attorney-client privilege and work product protections in certain circumstances in order to earn sentencing credit for cooperation with a government investigation.
Client Alert | April 6, 2006
New York Partner Lee Dunst is the author of "The Future of Parallel Criminal-Civil Investigations: Business as Usual or Increased Judicial Oversight?" [PDF], published in the March 17, 2006 issue of White Collar Crime Report.
Client Alert | March 17, 2006
Gibson Dunn partner F. Joseph Warin participated in a conference sponsored by the National Chamber Foundation and the U.S. Chamber of Commerce on a recent amendment to the United States Sentencing Guidelines affecting the attorney-client privilege for corporations.
Firm News | November 17, 2005