U.S. Commodity Futures Trading Commission (“CFTC”) shook things up in 2016 with new theories and fresh interpretations of the law. Along with this came hefty fines reaching up to $1.2 billion in total. CFTC wasn’t the only regulatory group handing out large fines but the National Futures Association (“NFA”) also collected around $700,000. Between the … Continue Reading
French parliamentarians are considering landmark anti-corruption laws that would be a considerable breakthrough for those in the fight against corruption. The French Constitutional Council must vote on the legislation within one month, and even if it is ruled invalid there are steps to be taken to keep the legislation alive. Some of the changes include … Continue Reading
On December 6, 2016, the U.S. Supreme Court issued its long-awaited ruling in Salman v. United States. In a unanimous opinion, the Supreme Court adhered to its 1983 decision in Dirks v. SEC, 463 U.S. 646, and held that a tippee is liable for trading on inside information when the tipper “personally will benefit directly, … Continue Reading
After being called upon by the Organisation for Economic Co-operation and Development to strengthen its anti-corruption efforts, France recently examined draft legislation which would do exactly that. While discussions before the French Parliament are not expected to begin for a few months, the implications of this legislation are expansive, and represent a revolution in French anti-corruption … Continue Reading
On January 27, 2016, Transparency International released its 2015 update to its annual “Corruption Perceptions Index” (“CPI”), an important resource for corporate anti-corruption compliance efforts. In total, 168 countries and territories around the globe were rated based on the perception of public sector corruption. For a summary of this year’s CPI, and for Reed Smith’s … Continue Reading
On 30 November, an English court approved the first Deferred Prosecution Agreement (DPA). This DPA also coincided with the first time that the Serious Fraud Office had charged the “failure to prevent bribery” offence under section 7 of the Bribery Act. The DPA was agreed between the SFO and Standard Bank in relation to allegations … Continue Reading
Sally Yates of the U.S. Department of Justice (“DOJ”) recently issued a memorandum detailing the DOJ’s increased commitment to pursue individuals engaged in corporate wrongdoing. The memo will likely affect the manner in which companies conduct internal investigations and interact with government prosecutors. Companies should take their current D&O insurance policies into consideration, as this … Continue Reading
The conviction of Tom Hayes in the first UK LIBOR trial (click here to read more) is a watershed moment. It’s a big win for the SFO, although it must be said that a more damning book of evidence could not be imagined. The judge’s sentencing remarks (link to judiciary.gov.uk) repay detailed study. Hayes received … Continue Reading
On July 7, 2015, attorneys general from 47 states and territories sent a letter to Congressional leaders urging them to consider federal data breach notification legislation that does not preempt the states. The move comes on the heels of a data breach announcement made by the Office of Personnel Management, and renewed interest on the … Continue Reading
On June 3, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a $75 million penalty against a Northern Mariana Islands casino for Bank Secrecy Act violations – the largest-ever FinCEN penalty assessed against a casino. FinCEN’s announcement follows an investigation of the casino, Hong Kong Entertainment (Overseas) Investments, Ltd., d/b/a Tinian Dynasty Hotel & … Continue Reading
On May 19, 2015, the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) filed a complaint and proposed consent order against PayPal, Inc. and its subsidiary Bill Me Later, Inc. (collectively, “PayPal”) in the U.S. District Court for the District of Maryland. If the court approves, the settlement will require PayPal to pay $15 million in … Continue Reading
A number of banks have agreed record settlements with regulators in relation to forex. These fines were paid by the banks themselves, as opposed to the traders involved, and the position of the individual, in the UK at least, is very different from the banks – to learn more, please click here to read the … Continue Reading
Reed Smith has closely followed State AGs’ interest and activities of in the areas of privacy and cybersecurity and recently blogged on a major NAAG (National Association of Attorneys General) conference in April on these topics. That conference, sponsored by the Mississippi AG, was meant to educate AGs – most of whom are the elected … Continue Reading
From 3 May 2015, businesses in the UK will face new risks as a reform in the law will mean that those enabling the criminal activities of an organised crime group, including professionals, can be prosecuted more easily. It is important that all businesses are alive to the risk of not asking questions, or of … Continue Reading
A former professional football player, Delroy Facey, has been convicted and imprisoned for offences under the UK Bribery Act. The BBC reports the conviction and sentence here. If you love sport it’s a sad story. Facey was a decent striker who, at one time, was considered good enough to play for Bolton Wanderers, then in … Continue Reading
As of April 1, 2015, the Financial Conduct Authority (FCA) has acquired new functions and powers in relation to competition including powers under the Enterprise Act 2002 (the 2002 Act) to conduct market studies and make references to the Competition and Markets Authority (CMA), and powers under the Competition Act 1998 (the 1998 Act) to … Continue Reading
Class actions – which are progressively becoming part of the legal landscape in France as “actions de groupe” – will probably soon be extended to personal injury claims against health products manufacturers, suppliers or service providers using health products. On March 17, 2015, a new bill proposal was issued, advocating the creation of a class … Continue Reading
On March 10, 2015, the U.S. Department of Justice (“DOJ”) announced a $4.9 million settlement of criminal and civil charges against CommerceWest Bank (“CommerceWest” or the “Bank”) brought pursuant to the Bank Secrecy Act (“BSA”), the Financial Institutions Reform, Recovery and Enforcement Act (“FIRREA”), and the Fraud Injunction Statute. The government alleged that, between December … Continue Reading
A decision of the French Supreme Administrative Court (Conseil d’Etat) dated 24 February 2015 has significantly broadened the scope of the French ‘Sunshine Act’: Whereas initially health care companies were only obliged to disclose the existence of agreements with health care professionals (HCPs), they will now also be required to disclose the remuneration of French … Continue Reading
A significant difference between the French and U.S. and UK legal systems is in the understanding of legal privilege: it does not exist for in-house counsel in France. The French approach is in line with the 2010 Akzo decision, in which the Grand Chamber of the European Court of Justice (ECJ) ruled that the requirement … Continue Reading
In 2014, there was an increase by 20 percent in open investigations by the UK’s Financial Conduct Authority (FCA). An increase that is speculated to be the result of the FCA’s new stricter regime, in comparison to its supposedly less confrontational predecessor, the FSA. Click here for the Reed Smith Client Alert to lean more … Continue Reading
As disclosed recently in a bankruptcy court filing, on January 27, 2015, the Financial Crimes Enforcement Network (“FinCEN”) imposed a $10 million civil money penalty pursuant to the Bank Secrecy Act (the “BSA”) on Trump Taj Mahal Associates LLC. Trump Taj Mahal consented to the imposition of the penalty (subject to the bankruptcy court’s approval) … Continue Reading
The prosecution of Smith and Ouzman Ltd. for bribery is winding to a close, with the sentencing of two directors of the company for corruption. See the basics of the story here. The 43-year-old sales director of the company got three years. The 72-year-old former chairman of the company got 18 months suspended, plus 250 … Continue Reading
In a widely anticipated decision, the Second Circuit on Wednesday clarified the standard for insider trading actions against tippees, downstream recipients of inside information who trade on that information. The court overturned the criminal convictions of two hedge fund portfolio managers who were convicted in 2013 as part of a massive sweep by New York … Continue Reading
