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Category Archives: Enforcement and Prosecution Policy and Trends

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Enforcement and Prosecution Policy and Trends

The Great American AI Act: What It Means — and Doesn’t Mean — for Companies Using AI

On June 4, 2026, Representatives Jay Obernolte and Lori Trahan released a discussion draft of the Great American Artificial Intelligence Act (GAAIA). The proposal has generated significant attention, but many organizations may be overestimating its practical significance for their day-to-day operations. The bill is directed primarily at developers of “frontier” AI models, so for most… Continue Reading
Enforcement and Prosecution Policy and Trends

Monitor Upcoming Negotiations of Education Department’s AIM Committee to Inform Public Comments on Accreditation Amendments

Stakeholders negotiating sweeping amendments to federal accreditation regulations proposed by the U.S. Department of Education (ED) will begin their final session to achieve consensus on May 18, 2026. A week-long effort in April revealed deep divisions among negotiators on the Accreditation, Innovation, and Modernization (AIM) Committee of the ED. Debates broke out over the ED’s… Continue Reading
Enforcement and Prosecution Policy and Trends, Fraud, Deception and False Claims

DOJ’s New West Coast Strike Force Puts Health Care Providers on Notice

On April 30, 2026, the Department of Justice’s (“DOJ”) National Fraud Enforcement Division (“Fraud Division”) announced the formation of the West Coast Health Care Fraud Strike Force, a multi-district enforcement initiative spanning Arizona, Nevada, and the Northern District of California. [1] Announced by Assistant Attorney General Colin McDonald, the new Strike Force signals a significant… Continue Reading
Enforcement and Prosecution Policy and Trends, Fraud, Deception and False Claims, Government Contracts

FAR Council Issues Implementation Guidance for Executive Order 14398: New DEI Contract Clause Requirements for Federal Contractors

On April 20, 2026, the Federal Acquisition Regulatory (FAR) Council issued agency implementation guidance for Executive Order (E.O.) 14398, “Addressing DEI Discrimination by Federal Contractors,” which President Trump signed on March 26, 2026. The guidance introduces a new contract clause — FAR 52.222-90 — and establishes tight deadlines for agencies to incorporate the clause into… Continue Reading
Enforcement and Prosecution Policy and Trends, Fraud, Deception and False Claims, Government Contracts

GSA AI Procurement Rules Would Introduce New Disclosure and Use-Rights Requirements for Federal Contractors

The General Services Administration (GSA) Federal Acquisition Service has released draft contract terms and conditions related to artificial intelligence (AI)-related procurements through a new proposed GSAR clause 552.239-7001, “Basic Safeguarding of Artificial Intelligence Systems (FEB 2026) (GSAR Deviation), that would impose material new requirements on contractors and service providers supplying artificial intelligence capabilities to the… Continue Reading
Enforcement and Prosecution Policy and Trends

SEC Enforcement Speaks in 2026: Enforcement Division Moves “Full Steam Ahead” with Focus on Quality over Quantity, Procedural Fairness, and Targeted Pursuit of Non-Fraud Violations

SEC Acting Enforcement Director Sam Waldon declared recently that his division is moving “full steam ahead” against those who “lie, cheat, and steal” but also is focusing on quality over quantity. He rejected traditional metrics — case counts, penalty totals and aggregate dollar amounts — as effective measures of the SEC’s enforcement program. At the… Continue Reading
Enforcement and Prosecution Policy and Trends, Fraud, Deception and False Claims, Government Contracts

New Executive Order Targets DEI Practices by Federal Contractors, Imposes Mandatory Contract Clause and FCA Liability

Continuing his Administration’s efforts to eliminate diversity, equity, and inclusion (DEI) activities, President Donald Trump signed an executive order, “Addressing DEI Discrimination by Federal Contractors,” on March 26, 2026 that directs all executive departments and agencies to include a new clause in all federal contracts and subcontracts prohibiting what the order defines as “racially discriminatory… Continue Reading
Enforcement and Prosecution Policy and Trends

White House Releases AI Legislative Recommendations—Congress Has the Blueprint, but Questions Remain

On March 20, 2026, the White House unveiled its National Policy Framework for Artificial Intelligence, providing a blueprint on legislative recommendations and urging Congress to act. It recommends that Congress create a unified federal standard to reduce the regulatory friction of competing state AI regimes, promote AI innovation and develop an AI-ready workforce, while ensuring… Continue Reading
Enforcement and Prosecution Policy and Trends, Securities and Commodities

When AI Isn’t Privileged, Confirmed: SDNY’s Written Opinion Elaborates on Confidentiality, Work Product, and Waiver

On February 10, 2026, U.S. District Judge Jed Rakoff of the Southern District of New York issued a bench ruling holding that a defendant’s use of generative AI to analyze legal exposure is not protected under attorney-client privilege or the work product doctrine. See When AI Isn’t Privileged: SDNY Rules Generative AI Documents Not Protected. On… Continue Reading
Enforcement and Prosecution Policy and Trends

OFAC Enforcement Action Against Academic Institution Provides Important Compliance Guidance

On February 12, 2026, Treasury’s Office of Foreign Assets Control (OFAC) announced the settlement of an enforcement action against IMG Academy (“IMG”) that highlighted the sanctions risks that U.S. academic institutions face and the steps OFAC recommends the institutions to take the address the risks.  The enforcement action stemmed from IMG accepting tuition payments from… Continue Reading
Anti-Money Laundering, Compliance, Enforcement and Prosecution Policy and Trends

FinCEN Announces Data-Driven Operation Targeting Southwest Border MSBs

On December 22, 2025, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) announced a multifaceted data-driven operation to address potential money laundering, focused on more than 100 U.S. money services businesses (MSBs) operating along the southwest border. MSBs are non-bank financial institutions that provide certain financial services, including money transmission, check cashing,… Continue Reading
Anti-Money Laundering, Compliance, Enforcement and Prosecution Policy and Trends

FinCEN Eyes Easing Compliance Burdens on Financial Institutions

The Financial Crimes Enforcement Network (“FinCEN”) has recently taken two steps in furtherance of the Trump Administration’s deregulatory agenda.  In late September, FinCEN posted a notice to the Federal Register soliciting comments on a proposed “Survey of the Costs of Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Compliance” to be completed by non-bank… Continue Reading
Enforcement and Prosecution Policy and Trends

State AGs Step Up Enforcement: Recent Lessons from Privacy Law Enforcement in Connecticut and Nebraska

As comprehensive state privacy laws continue to take root across the United States, recent enforcement actions by the attorneys general of Connecticut and Nebraska highlight an important shift — ensuring privacy law compliance vis-à-vis comprehensive privacy laws or other means is a top enforcement priority outside of California. Read on to learn more about state… Continue Reading
Enforcement and Prosecution Policy and Trends

DOJ’s Antitrust Division Announces New Whistleblower Rewards Program

Earlier this week, the Justice Department’s Antitrust Division announced that, for the first time ever, it will offer rewards to individuals who report antitrust crimes and related offenses. Partnering with the United States Postal Service, the Antitrust Division now invites individuals with original and specific information about antitrust crimes to voluntarily report that information and,… Continue Reading
Enforcement and Prosecution Policy and Trends, Fraud, Deception and False Claims

Order Limiting Strict Liability Has Implications on FDCA Enforcement for Companies, Individuals

On May 9, 2025, President Trump signed an Executive Order titled “Fighting Overcriminalization in Federal Regulations.” The Order seeks to reduce the regulatory burden on Americans and prevent individuals from being criminally penalized for unknowingly violating complex regulations.  In pursuit of these goals, the Order sets forth a policy “generally disfavor[ing]” strict liability crimes.  Agencies… Continue Reading
Enforcement and Prosecution Policy and Trends, Fraud, Deception and False Claims, Government Contracts

DOJ Announces Initiative to Use False Claims Act to Investigate DEI Practices

On May 19, 2025, the U.S. Department of Justice’s (DOJ) Deputy Attorney General announced its new Civil Rights Fraud Initiative, which aims to use the False Claims Act (FCA) to investigate and pursue claims against entities that tolerate antisemitism, allow men to enter women’s spaces or compete in female athletic competitions, or engage in unlawful… Continue Reading
Anti-Money Laundering, Enforcement and Prosecution Policy and Trends

FinCEN Narrows Focus on Southwest Border

In the last few weeks, the Financial Crimes Enforcement Network (FinCEN) has circulated several instructions focusing on money services businesses operating in the southwest United States, answering the current Administration’s call for increased security measures in that area.  On March 11, FinCEN issued a Geographic Targeting Order (GTO) adding more requirements to certain money services… Continue Reading
Compliance, Enforcement and Prosecution Policy and Trends, Fraud, Deception and False Claims, Government Contracts

Department of Justice Suggests “Aggressive” Enforcement of False Claims Act

In a speech to the Federal Bar Association’s annual qui tam conference on Feb. 20, 2025, Michael Granston, Deputy Assistant Attorney General for the Commercial Litigation Branch at the U.S. Department of Justice, discussed how the Trump administration plans to “aggressively” enforce the False Claims Act (FCA). His statements come on top of other comments from Trump… Continue Reading
Enforcement and Prosecution Policy and Trends

Supreme Court Holds That SEC Must Seek Civil Penalties in Federal Court

In SEC v. Jarkesy, No. 22-859, 603 U.S. __ (2024), the Supreme Court held that the Seventh Amendment prohibits the Securities and Exchange Commission (SEC or Commission) from seeking civil penalties in certain enforcement actions when the Commission chooses to proceed in-house before its own administrative law judges (ALJs), rather than in federal court. In… Continue Reading
Enforcement and Prosecution Policy and Trends, Financial Institution Regulation

CFPB: For-Profit School Misrepresented ISAs, Made False Claims About Grads’ Employment Rates

On April 17, 2024, the Consumer Financial Protection Bureau entered an order against a for-profit vocational school and its CEO for mischaracterizing the school’s income-share agreements (ISAs) and misrepresenting its graduates’ employment rates. The CFPB said the school drove students to finance their training programs with promises of high graduate employability. To finance students’ education,… Continue Reading
Enforcement and Prosecution Policy and Trends

Deputy Attorney General Monaco Announces New DOJ Whistleblower Program

On March 7, 2024, U.S. Deputy Attorney General Lisa Monaco gave remarks at the American Bar Association’s 39th National Institute on White Collar Crime in San Francisco, California. Monaco provided updates on the U.S. Department of Justice’s (DOJ or the Department) corporate criminal enforcement efforts and announced a handful of new Department initiatives, including a… Continue Reading

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