Greg Jacobs

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Foreign Investment in the United States: Executive Order to Divest Foreign Investors Withstands Judicial Review

On October 10, 2013, the U.S. District Court for the District of Columbia issued an amended ruling dismissing Ralls Corporation’s (“Ralls”) challenge to a presidential order requiring divestiture of its interest in four companies engaged in developing wind farms near a Naval base in Oregon. After the deal concluded, Ralls – a Delaware corporation privately … Continue Reading

Department of Labor Increases Affirmative Action Requirements for Federal Contractors

Last month, the Department of Labor (“DOL”) issued two regulations that require federal contractors to employ more veterans and individuals with disabilities, updating long-existing federal laws. For over 40 years, the Vietnam Era Veterans’ Readjustment Assistance Act (“VEVRA”) and Section 503 of the Rehabilitation Act (“Section 503”) have required federal contractors and subcontractors to affirmatively … Continue Reading

Government Sanctioned in False Claims Act Case for Failing to Preserve Documents

This post was written by Andrew Bernasconi and Nathan Fennessy. As we noted previously, there has been increasing attention in False Claims Act (“FCA”) cases to whistleblowers who fail to preserve relevant evidence. Now, in a recent decision in the United States District Court for the District of New Mexico, the government has been sanctioned for its … Continue Reading

President Obama Follows CFIUS Recommendation, Orders Divestiture on Ralls Wind Farm Deal

As many expected, today President Obama issued an Order exercising his statutory authority to block foreign investment in the United States that he finds to impair national security – in this case, the acquisition of wind farms in Oregon by Ralls Corporation, a firm owned by Chinese nationals. As previously reported, following CFIUS’ interim measures … Continue Reading

Presidential Dilemma on Ralls CFIUS Case

In a closely-watched case that will have important implications for future Chinese investment in the U.S. renewable energy market, President Obama is expected to rule in the next day or so on whether Ralls Corporation can go ahead with the acquisition of a wind farm that happens to be located near restricted airspace used for … Continue Reading

FCA Qui Tam Relator Sanctioned for Failing to Produce Documents

This post was written by Andrew C. Bernasconi and Nathan Fennessy. Continuing the recent trend of decisions sanctioning whistleblowers for failing to comply with their discovery obligations (see our previous posts “Whistleblower Precluded from Relying Upon Stolen Records for False Claims Act Case” and “FCA Qui Tam Relator Sanctioned for Destroying Evidence on Company-Issued Laptop”), the … Continue Reading

Whistleblower Precluded from Relying Upon Stolen Records for False Claims Act Case

Qui tam relators may have a difficult time in the future when relying upon stolen records or confidential patient information in False Claims Act (“FCA”) whistleblower actions after a recent decent by the United States District Court for the Southern District of Ohio. See Cabotage v. Ohio Hospital for Psychiatry, No. 11-cv-50 (S.D. Ohio July … Continue Reading

New Proposed Rules Require Government Contractors to Safeguard Information Systems, but What do They Really Change?

This post was written by Timothy J. Nagle and Gunjan Talati. On Friday, August 24, the Federal Acquisition Regulation (“FAR”) Council issued a proposed rule that adds a subpart and contract clause to the FAR that would force government contractors to implement basic information-systems safeguards for any non-public information that is provided by or generated … Continue Reading

SEC Whistleblower Program Makes its First Award

This post was written by James L. Sanders. An unnamed individual who provided information to the SEC about a securities fraud has been awarded $50,000 under the SEC’s Whistleblower Program. The award represents 30 percent of the monetary sanctions collected by the SEC in the case in which the whistleblower provided information. The whistleblower has … Continue Reading

Delaware Test For “Direct” vs. “Derivative” Claims Adopted by NY Appellate Court

This post was written by Herbert F. Kozlov and Lawrence J. Reina. In a case of first impression in New York, the Appellate Division, First Department, has adopted the test the Supreme Court of Delaware developed in Tooley v. Donaldson, Lufkin & Jenrette, Inc., 845 A.2d 1031, 1039 (Del 2004) for determining the difference between a … Continue Reading

Fifth Circuit Upholds Ability of Government Employee Whose Job is to Investigate Fraud to Bring Qui Tam False Claims Actions

This post was written by Scot T. Hasselman, Andrew C. Bernasconi, Nathan Fennessy, and Gunjan Talati. In a case of first impression in the United States Court of Appeals for the Fifth Circuit, the court held in United States ex rel. Little v. Shell Exploration & Production Co., No. 11-20320 (5th Cir. July 31, 2012) … Continue Reading

European Court of Justice Mandates Broader Use of Competitive Tendering in Defense Procurement

This post was written by Peter Teare, Alexandra A. Nelson, and Lorraine M. Campos. A landmark ruling of the European Court of Justice last month has significantly restricted the ability of EU governments to use sole-source or negotiated procedures with selected suppliers for purchases of defense and security equipment. In a case concerning the purchase … Continue Reading

Another Foreign Bank Fined by OFAC

This post was written by Michael J. Lowell. On the heels of the largest penalty settlement to date, OFAC has announced yet another settlement with a foreign bank relating to payments processed through U.S. financial institutions. On June 14, 2012, OFAC announced a settlement with the National Bank of Abu Dhabi (“NBAD”) for $855,000 to … Continue Reading

Proposed Rule Narrows ITAR Coverage of Personal Protective Equipment

This post was written by Michael J. Lowell. The Directorate of Defense Trade Controls (“DDTC”) is currently accepting comments to a proposed revision to Category X of the U.S. Munitions List (“USML”) in the International Traffic in Arms Regulations (“ITAR”), which covers personal protective equipment, including body armor. The proposed rule was published June 7, … Continue Reading

An End to Offsets in European Defense Trade?

This post was written by Lorraine M. Campos, Alexandra A. Nelson and Peter Teare. Governments inside and outside Europe routinely require industrial compensation or “offsets” as a condition of granting contracts for their defense and security supplies. But the days of widespread use of offsets in European defense trade appear limited. As a part of … Continue Reading

SBA Proposes New Rule to Permit SBIR and STTR Program Participation by Businesses Owned by Investment Firms

This post was written by Lorraine M. Campos and Gunjan R. Talati. Investment firms and small technology companies should be aware of a rule recently proposed by the U.S. Small Business Administration (SBA) that may impact small business participation in two programs. The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs … Continue Reading

Enforcing Teaming Agreements in Virginia

This post was written by Alexander Y. Thomas, Lorraine M. Campos, Brent R. Gary, and Gregory S. Jacobs. Contractors routinely sign teaming agreements to evidence collaboration in pursuit of government business. But, what’s the value of a teaming agreement if you can’t enforce it? The United States Court of Appeals for the Fourth Circuit’s recent … Continue Reading

Investment by Foreign Agent Creates OFAC Liability for U.S. Asset Manager

This post was written by Michael J. Lowell. On May 21, 2012, the Office of Foreign Assets Control (“OFAC”) announced the settlement of an apparent violation of the U.S. sanctions on Iran by Genesis Asset Managers, LLP (“GAM US”). GAM US agreed to remit $112,500 in order to settle potential civil liability relating to an investment in … Continue Reading

New Federal Research Conflict of Interests Regulations

This post was written by Lane Kneedler and Pakapon Phinyowattanachip. On September 26, 2011, the U.S. Department of Health and Human Services (“HHS”) issued new regulations governing the disclosure by faculty members and research staff of significant financial interests related to certain federal grants, and the reporting of “financial conflicts of interest” to certain federal … Continue Reading

Market Manipulation – Traders Beware: What Does the CFTC’s Triple Threat of MF Global, Dodd-Frank and Enforcement Pressure Mean for Traders?

This post was written by Efrem M. Grail, Elizabeth S. Fenton, and Andrew P. Cross. Public outcry, political pressure and new regulations enacted pursuant to the Dodd-Frank legislation have empowered the Commodity Futures Trading Commission to step up its investigative and enforcement efforts. Commodities traders, derivatives brokers, and energy professionals beware; your regulators are ready … Continue Reading

Results of the FSA’s Thematic Review into Investment Banks

This post was written by Robert Falkner and Tom Webley. In March 2012, The Financial Services Authority (“FSA”) published the results of its thematic review into the policies and procedures that investment banks have in place to prevent their employees from paying or receiving bribes. Click here for more information on the background to this … Continue Reading

Even Small Suspensions Can Have Big Costs: How Two Weeks Cost a Company 43% of Revenue

This post was written by Gunjan Talati. In October 2010, the Small Business Administration suspended government contractor GTSI Corp. for alleged improper contracting relationships with small business contractors. The suspension lasted for two weeks and was only lifted when GTSI entered into an administrative agreement with the SBA. The damage, however, was done, and according … Continue Reading

New OFAC Guidance Promotes Internet Freedom in Iran…As Long As the Internet Is Free

This post was written by Joelle E.K. Laszlo. What if you issued a general license and no one used it? The Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) has faced such a conundrum since March 2010, when it published a final rule amending U.S. regulations on Cuba, Iran, and the Sudan to … Continue Reading