Enforcement and Prosecution Policy and Trends August 15, 2025

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

By Nathanael Williams, Erin Ashwell and Eric Olshan

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 actions in Connecticut and Nebraska and how they highlight how companies that prioritize consumer trust and regulatory compliance stay ahead of the curve.

Fraud, Deception and False Claims August 4, 2025

California Defense Contractor and Private Equity Firm Agree to Pay $1.75M to Resolve False Claims Act Liability Relating to Voluntary Self-Disclosure of Cybersecurity Violations

By Todd R. Steggerda, Edwin O. Childs, Michael J. Podberesky, Abram J. Pafford, Brett Barnett, Jack White, Andrew Konia, Jason M. Vespoli, Maura Naehr and John Sullivan

On July 31, 2025, the U.S. Department of Justice (“DOJ”) announced a $1.75 million False Claims Act (“FCA”) settlement with Aero Turbine Inc. (“Aero Turbine”), a California-based defense contractor, and private equity firm Gallant Capital Partners LLC (“Gallant Capital”). The settlement arises out of allegations that Aero Turbine failed to comply with certain cybersecurity requirements under an Air Force contract and provided impermissible foreign third party access to sensitive defense information. This settlement highlights yet another example of the DOJ’s increased scrutiny of cybersecurity requirements (under the Cyber Fraud Task Force), specifically including the protection of Controlled Defense Information (“CDI”), under the FCA. The settlement is also an example of DOJ’s focus on (1) pursuing private equity investors and (2) rewarding entities that self-disclose and remediate wrongdoing.

Anti-Money Laundering July 31, 2025

FinCEN Hits Pause: AML Rule for Investment Advisers Delayed

By Jeffrey M. Hanna, Todd M. Beaton, Jr., Jackie Wells and Chelsea Smith Press

In a move to balance regulatory efficiency and cost, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) officially announced on July 21, 2025, that it will postpone the effective date, from January 1, 2026, to January 1, 2028, of the Investment Adviser Anti-Money Laundering Rule (“IA AML Rule”), see Anti-Money Laundering/Countering the Financing of Terrorism Program and Suspicious Activity Report Filing Requirements for Registered Investment Advisers and Exempt Reporting Advisers.

Enforcement and Prosecution Policy and Trends July 11, 2025

DOJ’s Antitrust Division Announces New Whistleblower Rewards Program

By J. Brent Justus, Holden Brooks, Nicholas J. Giles, Casey Erin Lucier, Megan Lewis and Christopher Karamanos

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, in appropriate cases, earn substantial monetary rewards of up to 30% of any criminal fines recovered. While alleged violations must be nominally related to “the Postal Service, its revenues, or property,” whistleblowers need not articulate a material or significant harm to the USPS to be eligible for the program.

Compliance, Fraud, Deception and False Claims July 11, 2025

DOJ and HHS Reestablish False Claims Act Working Group, Delineate Healthcare Enforcement Priorities

By Michael J. Podberesky, Brett Barnett, Maura Naehr, Timothy Fry and Edwin O. Childs

On July 2, 2025, the U.S. Department of Justice (DOJ) and U.S. Department of Health and Human Services (HHS) announced they will reestablish the DOJ-HHS False Claims Act Working Group. Originally formed in December 2020 at the tail end of the first Trump administration, this partnership focuses on advancing enforcement of the False Claims Act (FCA) as a primary tool to combat healthcare fraud. While some may view the announcement as merely formalizing long-existing cooperation between DOJ and HHS, the announcement is significant in that it signals the administration’s commitment to investigating and prosecuting individuals and entities that commit healthcare fraud. This reinvigoration of the FCA Working Group aligns with President Donald Trump’s plans to “aggressively” enforce the FCA.

Read on to learn what healthcare entities need to know about the reestablished working group.

Anti-Bribery and Corruption June 30, 2025

After a Pause, DOJ’s Updated FCPA Guidelines Focus on Cartels and TCOs, But Corporate Exposure Remains

By Eric Olshan, Patrick Rowan, Justin Givens, Roy Dixon III, Garen S. Marshall, Stephen Weiss, Ryan Buchanan, Alex J. Brackett, Michael F. Easley, Jr., Steven McCool, Elissa Baur, Jason H. Cowley, Caroline Schmidt Burton, V. Kathleen Dougherty and Joie Johnston

Executive Summary: On June 9, Deputy Attorney General Todd Blanche issued a memorandum to the Department of Justice’s Criminal Division, outlining the Department’s focus for pending and future FCPA actions. A day later, Matthew Galeotti, the Head of the Criminal Division, offered more insight into how this administration will approach FCPA investigations and enforcement actions. Both pronouncements make clear that DOJ will target companies operating abroad who partner with foreign actors, especially those with any connection to cartels or transnational criminal organizations. The Criminal Division may also focus more on individual misconduct, rather than corporate liability—a welcome change for companies.

Anti-Bribery and Corruption June 18, 2025

Justice Department Issues First Declination Under NSD’s M&A Safe Harbor Policy to Private Equity Firm, Reinforcing Roadmap for Acquiring Firms

By Garen S. Marshall, Justin Givens, Mindy Sauter and Alex J. Brackett

On June 16, the U.S. Department of Justice’s (DOJ) National Security Division (NSD) and the U.S. Attorney’s Office for the Southern District of Texas (USAO-SDTX) announced their decision to decline prosecution of White Deer Management LLC (White Deer), a private equity firm that voluntarily disclosed export control and sanctions violations committed by its newly acquired portfolio company, Unicat Catalyst Technologies LLC (Unicat).[1] This is the first public declination issued under NSD’s M&A Safe Harbor Policy, which applies to voluntary self-disclosures involving potential violations of export control, sanctions, and national security laws.[2]

Enforcement and Prosecution Policy and Trends, Fraud, Deception and False Claims June 16, 2025

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

By Clint Narver, Eric Olshan, Mindy Sauter and James Hornsby

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 are directed to consider “civil rather than criminal enforcement of strict liability regulatory offenses,” with criminal prosecution reserved for cases involving “persons who know or can be presumed to know what is prohibited or required by the regulation and willingly choose not to comply, thereby causing or risking substantial public harm.” The Order further directs agencies to complete several longer-term tasks, including preparing a report for the Office of Management and Budget containing a list of criminal offenses they or the U.S. Department of Justice (DOJ) enforce, and identifying whether the offenses have a mens rea requirement.

Fraud, Deception and False Claims June 11, 2025

The Risks of Rushing In: A Closer Look at DOJ Criminal Division’s Updated Corporate Enforcement Policy in the Broader Enforcement Landscape

By Ryan Buchanan, Eric Olshan, Michael F. Easley, Jr., Garen S. Marshall, V. Kathleen Dougherty, Mindy Sauter, Roy Dixon III, Jordan LaPointe, Joie Johnston and Colin F. Brady

I. Introduction: More Clarity, But Not a Complete Roadmap

On June 10, Matthew Galeotti, the Head of the U.S. Department of Justice’s (DOJ) Criminal Division, delivered remarks at an event hosted by the American Conference Institute,[1] in which he discussed recent updates to the division’s Corporate Enforcement and Voluntary Self-Disclosure Policy (CEP).[2] The revisions mark the new administration’s most detailed articulation to date of what companies can expect when they come forward to disclose misconduct to the Criminal Division. As Galeotti reiterated in his remarks,[3] the new CEP focuses on three core updates: a streamlined voluntary self-disclosure framework, tighter limits on corporate monitorships, and new whistleblower incentives and policies—including a carveout that allows companies to retain eligibility for a declination even when DOJ learns of misconduct through an internal report.

Fraud, Deception and False Claims May 30, 2025

Healthcare Fraud Enforcement in a Second Trump Administration: Trends, Priorities, and Implications

By Mindy Sauter, Clint Narver, Michael Elliott, Garen S. Marshall, Justin Givens, Michael J. Podberesky and Rhea Shahane

On May 12, 2025, the United States Department of Justice’s (“DOJ”) Criminal Division released a major policy memorandum outlining its enforcement priorities for the upcoming year. Unsurprisingly, the number one priority for the Division was investigating and prosecuting white-collar crimes related to waste, fraud, and abuse—and particularly healthcare fraud. This emphasis on prosecuting healthcare fraud reflects the current administration’s broader goals of eliminating waste in federal programs, such as Medicare, Medicaid, and TRICARE, and ensuring that taxpayer dollars are used efficiently and effectively.

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