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THE LATEST ON GOVERNMENT INQUIRIES AND ENFORCEMENT ACTIONS

Government Investigations and White Collar Litigation Group

McGuireWoods LLP

At McGuireWoods, we deliver quality work, personalized service and exceptional value. We use technology to provide efficient legal solutions and employ a diverse workforce to bring real-world and innovative perspectives to meeting our clients’ needs. With 1,100 lawyers and 21 strategically located offices worldwide, McGuireWoods uses client-focused teams to serve public, private, government and nonprofit clients from many industries, including automotive, energy resources, healthcare, technology and transportation.

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Recent Sanctions Enforcement Actions Demonstrate Importance of  Incorporating All Available Data into Screening

By Patrick Rowan, Alex J. Brackett, Benjamin A. O'Neil and McGuireWoods LLP on Enforcement and Prosecution Policy and Trends, Sanctions, Trade Embargo, and Export Controls
For U.S. businesses, sanctions compliance has never been more challenging or more important.  The U.S. has responded to Russia’s invasion of Ukraine with a broad range of sanctions targeting the Russian government, its officials, oligarchs and Russia’s financial and energy industries, among others.  Indeed, since the invasion of Ukraine, the agency that administers sanctions, the… Continue Reading

New York LLC Transparency Act Beneficial Ownership Reporting Requirements to Take Effect

By Jeffrey M. Hanna, Lauren Mann, McGuireWoods LLP and Government Investigations Group on Compliance
On December 23, 2023, New York Governor Kathy Hochul signed the New York LLC Transparency Act (“NYLTA”), which requires LLCs to disclose beneficial ownership information (“BOI”) to the New York Department of State.  Effective December 21, 2024, the NYLTA will impose separate BOI reporting requirements on New York LLCs, which are also subject to the… Continue Reading

Corporate Transparency Act: Three Updates for January 2024

By Jeffrey M. Hanna, Lauren Mann, McGuireWoods LLP and Government Investigations Group on Anti-Money Laundering, Compliance
RELATED UPDATE: Deputy Attorney General Monaco Announces New DOJ Whistleblower Program (March 8, 2024) As of January 1, 2024, the Corporate Transparency Act (“CTA”) has gone into effect. Companies that may be Reporting Companies of Beneficial Ownership Information (“BOI”) should be aware of three key aspects of the CTA.… Continue Reading

FinCEN Extends Time to File Beneficial Ownership Information for Entities Created After January 1, 2024

By Jeffrey M. Hanna, Lauren Mann, McGuireWoods LLP and Government Investigations Group on Anti-Money Laundering, Compliance
The Corporate Transparency Act (“CTA”) was enacted in 2021 as part of the Anti-Money Laundering Act of 2020. The CTA requires certain business entities (“Reporting Companies”) to report beneficial ownership information (“BOI”), and, for entities created or registered on or after January 1, 2024, information with respect to any individual who directly files the document… Continue Reading

FinCEN Specifies When and How Reporting Companies May Use FinCEN Identifiers

By Jeffrey M. Hanna, Lauren Mann, McGuireWoods LLP and Government Investigations Group on Anti-Money Laundering, Compliance
The Corporate Transparency Act (“CTA”) was enacted in 2021 as part of the Anti-Money Laundering Act of 2020, requiring certain business entities (“Reporting Companies”) to report beneficial ownership information (“BOI”), and, for entities created or registered on or after January 1, 2024, information with respect to any individual who directly files the document creating the… Continue Reading

Lessons for Providers and Practice Entities: Ophthalmology Groups Pay Millions to Settle Co-Management, Optometrist Relationship Allegations

By Timothy Fry, Holly Buckley, Gretchen Heinze Townshend, Jim Schanaberger, Brett Barnett and McGuireWoods LLP on Fraud, Deception and False Claims
Two ophthalmology practice groups recently reached settlements with the U.S. government totaling nearly $20 million to resolve allegations that their third-party cataract arrangements violated several healthcare laws. Read on to discover how the settlements offer guidance to vision providers with respect to the government’s focus on ophthalmology-optometry relationships, and whether the settlements’ lessons have broader… Continue Reading

Beneficial Ownership Reporting Requirements under the Corporate Transparency Act

By Jeffrey M. Hanna, Lauren Mann, McGuireWoods LLP and Government Investigations Group on Anti-Money Laundering, Compliance
Corporate Transparency Act Beneficial Ownership Reporting Requirements to Take Effect In 2021, the Corporate Transparency Act (“CTA”) was enacted as part of the Anti-Money Laundering Act of 2020, requiring certain business entities (“Reporting Companies”) to report beneficial ownership information (“BOI”) to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”).  FinCEN issued the final… Continue Reading

DOJ Announces Safe Harbor Policy for Mergers and Acquisitions

By Benjamin A. O'Neil, Jason H. Cowley, Justin Givens, Edwin O. Childs, J. Brent Justus, Holden Brooks, Amy Manning and McGuireWoods LLP on Compliance, Enforcement and Prosecution Policy and Trends
In the U.S. Department of Justice’s continuing efforts to incentivize voluntary disclosure of corporate misconduct, Deputy Attorney General Lisa Monaco announced the Criminal Division’s latest corporate self-disclosure policy this week, aimed at mergers and acquisitions specifically (remarks Here).  Pursuant to DOJ’s new Mergers and Acquisitions Safe Harbor Policy (the “Policy”), acquiring companies that promptly and… Continue Reading

SBA Issues Interim Guidance After Ultima Decision Finds 8(a) Program Violates Equal Protection

By Edwin O. Childs, Laura Colombell Marshall, Brian D. Barger, WIlliam Doyle, John E. Thomas, Jr., Abram J. Pafford, Jack White, John S. Moran and McGuireWoods LLP on Government Contracts
Influenced by the U.S. Supreme Court’s SFFA college affirmative action decision, on July 19, the U.S. District Court for the Eastern District of Tennessee enjoined the U.S. Small Business Administration (SBA) from determining federal contractor eligibility for its 8(a) Business Development program according to a “rebuttable presumption” that individuals of certain racial groups are socially… Continue Reading

Massachusetts Attorney General Increasing Enforcement in Car Repossession Space

By Kevin B. Frankel, Jeffrey P. Ehrlich, Erin Ashwell and McGuireWoods LLP on Enforcement and Prosecution Policy and Trends
The Massachusetts Attorney General (AG) is increasing its enforcement in the motor-vehicle-repossession space. In a January 17, 2023 Assurance of Discontinuance (AOD), the AG stated that it is “conducting an investigation” into “entities collecting, servicing and/or funding” motor-vehicle-secured retail-installment contracts. The AG is focused on two primary areas of compliance:… Continue Reading

Departments of Justice, Commerce and Treasury Issue Tri-Seal Compliance Note on Voluntary Self-Disclosure of Potential Violations

By Alex J. Brackett, Patrick Rowan, Jason H. Cowley, Edwin O. Childs, Laura Colombell Marshall, Elissa Baur and McGuireWoods LLP on Sanctions, Trade Embargo, and Export Controls
On July 26, 2023, the U.S. Department of Justice’s National Security Division, U.S. Department of Commerce’s Bureau of Industry and Security, and U.S. Department of the Treasury’s Office of Foreign Assets Control issued a Tri-Seal Compliance Note (the Note) detailing updates to the three agencies’ voluntary self-disclosure policies applicable to violations of U.S. sanctions, export… Continue Reading

DHS Issues Final Rule Regulating Federal Contractors’ Handling of Controlled Unclassified Information

By Jack White, Edwin O. Childs, Abram J. Pafford, Andrew Konia, Jason M. Vespoli, Jessica Nejberger and McGuireWoods LLP on Fraud, Deception and False Claims
On June 21, the U.S. Department of Homeland Security issued a long-anticipated cybersecurity final rule that revises an existing clause and adds two new clauses to the Homeland Security Acquisition Regulation related to contractors’ handling of controlled unclassified information. Read on for highlights from this rule, which goes into effect July 21 and is likely… Continue Reading

Supreme Court Clarifies the False Claims Act’s Knowledge Requirement, Eliminating a Potential Defense for Government Contractors and Healthcare Providers Accused of Fraud

By Michael J. Podberesky, Edwin O. Childs, Gretchen Heinze Townshend, Brett Barnett, Jonathan Ellis and McGuireWoods LLP on Fraud, Deception and False Claims, Government Contracts
On June 1, 2023, the Supreme Court unanimously ruled in favor of whistleblower plaintiffs (referred to as “relators”) in consolidated False Claims Act (“FCA”) cases in a decision that clarified the application of the FCA’s knowledge requirement.  In United States ex rel. Schutte v. SuperValu Inc., the Court held that the FCA reaches defendants who… Continue Reading

New York Pharmacy Owners Indicted for Alleged Healthcare Fraud Scheme

By Samuel C. Bernstein and McGuireWoods LLP on Fraud, Deception and False Claims
On May 2, the U.S. Department of Justice announced the indictment of two New York state pharmacy owners for their participation in an alleged $29 million healthcare fraud scheme. They face charges of conspiracy to commit healthcare fraud, conspiracy to commit money laundering and conspiracy to pay illegal healthcare kickbacks and bribes. Read on for… Continue Reading

Ophthalmic Distributor May Face $848M in Penalties for Kickbacks, False Claims Act Violations

By Michael J. Podberesky, Samuel C. Bernstein, Kimberly J. Kannensohn and McGuireWoods LLP on Fraud, Deception and False Claims
On Feb. 28, a federal jury in the District of Minnesota found the Cameron-Ehlen Group, d/b/a Precision Lens, and its founder and owner guilty of paying kickbacks to ophthalmic surgeons in violation of the False Claims Act and Federal Anti-Kickback Statute between 2006 and 2015. Read on for details about this case, which illustrates the… Continue Reading

U.S. Department of Education Launches Secret Shoppers Program to Investigate Colleges and Universities

By Farnaz Farkish Thompson, Jeffrey P. Ehrlich, John S. Moran, Meredith Pinson, Jack White and McGuireWoods LLP on Enforcement and Prosecution Policy and Trends
Federal Student Aid’s Office of Enforcement announced a “secret shoppers” program to evaluate a college or university’s recruitment, enrollment, financial aid and other practices. The secret shoppers program will focus on student recruitment and enrollment practices, which may include the practices of online program managers. Read on for details about this initiative, including types of… Continue Reading

Ericsson Pleads Guilty, Agrees to Pay $206M in Fines, Following Alleged Violation of FCPA Deferred Prosecution Agreement

By Benjamin A. O'Neil, V. Kathleen Dougherty, Elissa Baur and McGuireWoods LLP on Anti-Bribery and Corruption
Last week, the U.S. Department of Justice (DOJ) announced that Sweden-based multinational telecommunications company Telefonaktiebolaget LM Ericsson (Ericsson) will plead guilty to breaching the Foreign Corrupt Practices Act (FCPA) and has agreed to pay over $206 million in related penalties following its alleged breach of a 2019 Deferred Prosecution Agreement (DPA) with the Department.… Continue Reading

DOJ Announces “Pilot Program Regarding Compensation Incentives and Clawbacks” with Significant Ramifications for Corporations Facing Criminal Investigations

By John S. Moran, Brandon M. Santos, Casey Erin Lucier, Jeffrey M. Hanna, Caroline Schmidt Burton and McGuireWoods LLP on Enforcement and Prosecution Policy and Trends
The Department of Justice Criminal Division announced a “Pilot Program Regarding Compensation Incentives and Clawbacks” (the “Program”) this week with broad implications for corporations and their individual executives operating within the Department’s jurisdiction. During two keynote speeches delivered at the American Bar Association’s National Institute on White Collar Crime, Deputy Attorney General Lisa Monaco (remarks… Continue Reading

Analysis of DOJ’s FY 2022 FCA Statistics and the Mixed Signals Therein

By Michael J. Podberesky, David Pivnick, Laura Colombell Marshall, Edwin O. Childs and McGuireWoods LLP on Fraud, Deception and False Claims
Earlier this month, the U.S. Department of Justice (DOJ) announced that it recovered over $2.2 billion under the False Claims Act (FCA) in Fiscal Year 2022.[1] That is a steep drop from last year’s near-record $5.7 billion haul and the lowest annual recovery since 2008. That year-over-year decline, though, was exacerbated by a $3 billion… Continue Reading

Cross-Border Enforcement and Trends — 2022 Year in Review

By Benjamin A. O'Neil, V. Kathleen Dougherty, Elissa Baur, Elizabeth F. Tyler, Clare E. Reardon and McGuireWoods LLP on Anti-Bribery and Corruption, Sanctions, Trade Embargo, and Export Controls
Key developments in U.S. cross-border enforcement were driven by the year’s most newsworthy developments, from Russia’s invasion of Ukraine and the battery of sanctions that swiftly followed, to the collapse of the cryptocurrency market. For details, download this inaugural review, which focuses on anti-money laundering, as this issue continued its rise up the enforcement and… Continue Reading

Supreme Court to Determine Whether False Claims Act Liability Is Precluded Where Defendants Proffer an Objectively Reasonable Interpretation of an Ambiguous Legal Requirement

By Michael J. Podberesky, Brett Barnett and McGuireWoods LLP on Fraud, Deception and False Claims
On January 13, 2023, the Supreme Court granted a writ of certiorari to petitioners in two False Claims Act cases to determine whether the False Claims Act’s knowledge requirement reaches defendants who can offer an “objectively reasonable” interpretation of an ambiguous legal or contractual requirement material to government payment. The Court’s decision will likely be… Continue Reading

SEC Issues Risk Alert on Reg BI Deficiencies Identified During Exams

By John Ayanian, Cheryl Haas, McGuireWoods LLP and Government Investigations Group on Compliance, Securities and Commodities
On Jan. 30, the U.S. Securities and Exchange Commission’s Division of Examinations released a Risk Alert identifying perceived weaknesses in broker-dealers’ compliance with the disclosure, care, conflicts of interest and compliance obligations of Regulation Best Interest. Read on for highlights from the alert and how they reflect the SEC’s evolving expectations during examinations… Continue Reading

Federal Trade Commission Proposes Rule to Bar Almost All Non-Compete Agreements in Contracts With Workers

By Amy Manning, Holden Brooks, Wrede Smith, Joshua Wade, John G. McDonald, Elena Marcuss, John E. Thomas, Jr., John Bishop, Casey Erin Lucier and McGuireWoods LLP on Enforcement and Prosecution Policy and Trends
On Jan. 5, the Federal Trade Commission proposed a sweeping rule that would bar almost all non-compete clauses in contracts with workers and in other agreements. A notice-and-comment period provides an opportunity for stakeholders to comment on the proposed rule. If adopted, the rule, which would not take effect for several months, would upend longstanding… Continue Reading

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