United States: White Collar Roundup (December 2017)

DOJ Further Strengthens FCPA Self-Disclosure Program

In a speech at the 34th International Conference on the Foreign Corrupt Practices Act, U.S. Deputy Attorney General Rod Rosenstein announced an updated FCPA enforcement policy to provide organizations with an incentive to voluntarily disclose organizational wrongdoing. He began by acknowledging that "it is not for the Department of Justice to say whether the FCPA reflects sound policymaking. The United States Congress made that judgment. Our mission is to detect, deter, and punish violations of the laws of the United States." He also reemphasized the DOJ's continued focus on individuals, noting, "Effective deterrence of corporate corruption requires prosecution of culpable individuals. We should not just announce large corporate fines and celebrate penalizing shareholders." Further, he lauded companies with robust compliance programs, saying, "a company with a robust compliance program can prevent corruption and reduce the need for enforcement." He then announced the revised FCPA Corporate Enforcement Policy and promised that it would be incorporated into the U.S. Attorneys' Manual. The highlights of the updated policy are as follows:

  • First, "when a company satisfies the standards of voluntary self-disclosure, full cooperation, and timely and appropriate remediation, there will be a presumption that the Department will resolve the company's case through a declination."
  • Second, if "aggravating circumstances" overcome that presumption, "the Department will recommend a 50% reduction off the low end of the Sentencing Guidelines fine range."
  • Third, "the Policy provides details about how the Department evaluates an appropriate compliance program, which will vary depending on the size and resources of a business."

In closing, he noted that companies that choose not to participate in the voluntary-disclosure program would be dealt with in line with the Principles of Federal Prosecution of Business Organizations.

A Christmas Carol: SEC FCPA Edition

Not to be outdone, at New York University's Program on Corporate Compliance and Enforcement, Steven R. Peikin, Co-Director, Enforcement Division, spoke about the 40th anniversary of the Foreign Corrupt Practices Act (FCPA). In his remarks, Peikin echoed Charles Dickens by reflecting "on the past, present, and future of SEC enforcement of the FCPA." As to the past, Peikin noted that "enforcement of the FCPA has been a fundamental part of the SEC's enforcement mission." Presently, the SEC's specialized unit that focuses on FCPA enforcement "has approximately three dozen attorneys and forensic accountants in various of the SEC's offices around the country." For the future, Peikin stressed the importance of international cooperation in anti-bribery enforcement and of holding individual wrongdoers responsible for their misconduct. He noted that the SEC "considers individual liability in every case it investigates; it is a core principle of our enforcement program." He also acknowledged the challenges the SEC faces in fully investigating an FCPA matter and bringing an action within the applicable statute of limitations. That said, he stressed the SEC's redoubling of its efforts to bring cases as quickly as possible to avoid any statute-of-limitations bar.

Manhattan DA's Take on Cybersecurity Enforcement

At the Manhattan District Attorney's Office's 7th Annual Financial Crimes & Cybersecurity Symposium, New York District Attorney Cyrus R. Vance, Jr., used his opening remarks to discuss his office's efforts to combat cybersecurity incidents. Vance noted that cyberattacks used to be about stealing money, but appear now to "represent something far more sinister." He opined that "Cybercrime is second only to terrorism in its potential to disrupt the functioning of our society." He also announced a partnership with the Procureur de la République de Paris to combat cybercrime, which will be modeled on his office's partnership with the City of London Police, which was set up in 2014. Vance also took the opportunity to lambast device encryption: "Default device encryption does not defend against these kinds of cyberattacks, nor does it protect users from phishing attempts on their devices. What it does do, is thwart law enforcement's ability to identify the perpetrators, and take them out of the game. That is the great irony at the heart of this debate. In their purported attempt to provide more cybersecurity, [device encryption has] empowered cybercriminals to act with impunity."

Guilty Pleas Abound in Medicare and Medicaid Fraud Prosecution

Joon H. Kim, the Acting U.S. Attorney for the Southern District of New York, reported that a doctor and four executives pleaded guilty to a $30 million scheme to defraud Medicare and Medicaid. The alleged scheme involved the operation of fraudulent clinics and a related ambulette company. As part of the scheme, the defendants paid cash kickbacks to elderly patients who were insured by Medicare or Medicaid and then billed those government payors for unnecessary medical services, tests, and supplies. As Kim said, "These five defendants bilked Medicare and Medicaid out of millions of dollars for unjustified medications, procedures, and supplies. Medicare and Medicaid were established to assist the elderly and economically disadvantaged, not to serve as cash cows for corrupt professionals." Kim noted that five additional defendants remain under indictment and are scheduled to go to trial before U.S. District Judge Lorna G. Schofield on April 23, 2018.

Another Guilty Plea in the Compounding Pharmacy Investigation in the Garden State

Timothy Frazer, a commercial construction estimator, admitted his role in a $50 million health care fraud conspiracy in New Jersey. In further confirmation that the principles of individual accountability continue to be vigorously pursued by the government, Frazer is the twelfth individual to plead guilty to this conspiracy. According to documents filed in federal court, Frazer was a recruiter in the conspiracy and persuaded individuals in New Jersey to obtain expensive and medically unnecessary compounded medications from an out-of-state pharmacy. Frazer admitted to submitting false claims, which caused New Jersey State benefit programs to pay approximately $800,000 in false claims. As part of his guilty plea, he agreed to forfeit over $145,000 and to pay over $800,000 in restitution. Frazer faces a maximum prison sentence of 10 years and a fine of $250,000 or twice the profits/losses of the fraud. For the government's press release, click here.

Click here to read further Insights from Day Pitney

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

In association with
Related Topics
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions