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Congressional Investigations: Beyond Sensational Headlines — Incoming House Leaders Announce Broad Investigative Priorities Targeting Business Community

By John Adams, Ryan M. Bernstein, Robert J. Bittman, Richard Cullen, Frank J. Donatelli, Louis D. Greenstein, Charles McIntyre, Mona G. Mohib, Susan C. Rodriguez, L. F. Payne, Jr., Patrick Rowan, Todd R. Steggerda, Robert K. Wasinger & Government Investigations Group on December 19, 2018
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In the politically explosive atmosphere of Washington, the talk of the town is focused on congressional investigations: who will be called before Congress, and when. Newspaper headlines blare the latest controversy — from use of personal emails for government business, to numerous investigations alleging corruption of current and former government employees, including several cabinet secretaries, and the continuing developments from Special Counsel Robert Mueller’s Russia investigation. But as the nation prepares for power in the House to change hands on Jan. 3, another question looms large: what does all this mean for the business community?

Though the priorities of incoming House committee chairs may be relegated to smaller print below the fold, according to their own public commentary and reporting, the new House is poised to commence oversight hearings and congressional inquiries aimed at key segments of the business community. This article highlights the prerogatives of some of the most important committees and industry areas likely to see significant activity from the new House of Representatives.

In the House Judiciary Committee, multiple press outlets report that incoming chair Rep. Jerry Nadler (D-N.Y.) will focus on a variety of healthcare issues, such as consolidation in three major areas — healthcare insurers, the hospital market, and pharmacy benefit managers — as well as investigating the Trump Administration’s decision not to defend the Affordable Care Act against a lawsuit from 20 Republican-led states. According to David Cicilline (D-R.I.), poised to chair the antitrust subcommittee, “We will get to work immediately to promote competition and address monopoly power in health-care markets.” Additionally, spurred by the most recent and widely publicized shootings at the Tree of Life Synagogue in Pittsburgh and the Marjory Stoneman Douglas High School in Parkland, Florida, Nadler will likely take up gun control as it relates to mass shootings, implicating the gun manufacturing industry and retail outlets. Finally, while Nadler said he will not move to impeach Justice Brett Kavanaugh, he indicated plans to examine other issues associated with Kavanaugh’s confirmation process.

Because the House Oversight and Government Reform Committee’s jurisdiction is broad, incoming chair Elijah Cummings (D-M.D.) is likely to investigate numerous issues spanning several industries. Media reports indicate that these investigations will include the high cost of prescription drugs; the continuing water crisis in Flint, Michigan; and Commerce Secretary Wilbur Ross’ decision to include a citizenship question on the 2020 census. On immigration, Cummings plans to investigate the Trump Administration’s policies on the separation of migrant children from their undocumented parents at the Mexican border. Press reports also confirm Cummings is expected to investigate the General Services Administration’s decision to keep the FBI headquarters in downtown Washington, D.C., as opposed to a suburban headquarters in Maryland or Virginia, thus preventing the land from being developed commercially, in potential competition with the Trump International Hotel.

In the House Financial Services Committee, press reports indicate that incoming chair Rep. Maxine Waters (D-C.A.) will investigate consumer finance issues involving the big banks and credit reporting agencies, as well as the Trump Organization’s ties to large financial institutions. While major legislation rolling back bank deregulation is unlikely given Republican control of the Senate, Waters likely will focus on financial institutions’ conduct — particularly, the conduct of the largest banks — toward consumers during the financial crisis. In Waters’ own words: “I have not forgotten that you sold us those exotic products. … What am I going to do to you? … I’m going to do to you what you did to us.”

There also will likely be substantial investigations activity focused on the energy and environmental arena. For example, incoming chair Rep. Raúl Grijalva (D-A.Z.) for the House Natural Resources Committee said he will hold hearings regarding rule changes promulgated by the Trump Administration, including rules addressing climate change, federal waters and waterways, the Endangered Species Act, and the Wilderness Act. Additionally, Rep. Frank Pallone (D-N.J.), who will take over the House Energy and Commerce Committee, said seismic testing, a process where compressed air is shot into the ocean to try to locate oil and gas deposits and is thought to be a precursor of offshore oil drilling testing, “has disastrous consequences for marine wildlife.”

News reports also indicate that incoming chair Rep. Richard Neal (D-M.A.) of the House Ways and Means Committee will lead the House’s consideration of the United States–Mexico–Canada Agreement (the revised NAFTA deal), which will affect the auto, tech, retail, agriculture, labor and environmental sectors of the economy, though reporting requirements will likely delay a vote until the beginning of the second quarter. Press reports also indicate that the House Energy and Commerce Committee plans to hold oversight hearings regarding transparency and data security at some of the nation’s biggest technology companies.

Other commentary suggests that House Education and Workforce Committee incoming chair Rep. Bobby Scott (D-V.A.) will likely examine Education Secretary Betsy DeVos’ efforts to overturn a variety of Obama-era education regulations, implicating the private and for-profit college industry, veterans hiring, and the defense industry writ large. Based on recent press and commentary from incoming House leadership, we also anticipate significant investigative activity from House Permanent Select Committee on Intelligence incoming chair Adam Schiff (D-C.A.), House Foreign Affairs Committee incoming chairman Elliot Engel (D-N.Y.), House Armed Services incoming chairman Adam Smith (D-W.A.), and House Transportation and Infrastructure Committee incoming chair Rep. Peter DeFazio (D-O.R.).

The public statements of the incoming House chairs make it clear that businesses will confront an active period for congressional investigations.  In fact, such activity is likely to continue some of the pitched battles encountered during the Obama Administration, as well as open up new fronts.

For more detail regarding the stated priorities of these committees or more information about this article generally, please contact any of the authors or other members of our congressional investigations practice.

Photo of John Adams John Adams

John represents clients in complex litigation at the trial and appellate level, with a particular focus on matters arising out of government and criminal investigations. He has conducted internal investigations, represented clients in sensitive and complex grand jury investigations, tried cases to bench…

John represents clients in complex litigation at the trial and appellate level, with a particular focus on matters arising out of government and criminal investigations. He has conducted internal investigations, represented clients in sensitive and complex grand jury investigations, tried cases to bench and jury, and briefed and argued cases in appellate courts.

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Photo of Ryan M. Bernstein Ryan M. Bernstein

Ryan joined McGuireWoods Consulting in April 2018 and serves as a senior vice president in the Federal Public Affairs group. He assists clients with matters before Congress, regulatory agencies and the executive branch with a particular focus on the agriculture and energy industries.

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Photo of Robert J. Bittman Robert J. Bittman

A former state and federal prosecutor handling high-profile matters, Bob currently represents multinational corporations navigating the complex web of laws and regulations that challenge today’s international business community. He offers particular experience related to complex frauds, the Foreign Corrupt Practices Act, the Sarbanes-Oxley

…

A former state and federal prosecutor handling high-profile matters, Bob currently represents multinational corporations navigating the complex web of laws and regulations that challenge today’s international business community. He offers particular experience related to complex frauds, the Foreign Corrupt Practices Act, the Sarbanes-Oxley Act, international data privacy laws and corporate compliance.

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Photo of Richard Cullen Richard Cullen

Richard Cullen is the chairman of McGuireWoods LLP and a senior litigation partner. He counsels corporate executives, boards of directors, elected officials and the heads of major nonprofit institutions on matters of the utmost sensitivity, often involving issues of national security. He has…

Richard Cullen is the chairman of McGuireWoods LLP and a senior litigation partner. He counsels corporate executives, boards of directors, elected officials and the heads of major nonprofit institutions on matters of the utmost sensitivity, often involving issues of national security. He has extensive experience defending large multinational corporations in investigations conducted by the U.S. Department of Justice, state attorneys general and local prosecutors. He is frequently called on to conduct confidential internal investigations to assist corporations in assessing the risk of criminal prosecution or regulatory enforcement. His representation of clients in investigations by the U.S. Department of Justice often includes the proceedings that parallel white-collar prosecution, such as SEC enforcement actions, collective prosecution or civil enforcement by states’ attorney generals, debarment actions and civil litigation.

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Photo of Frank J. Donatelli Frank J. Donatelli

A longtime political activist, Frank is a senior advisor for McGuireWoods Consulting LLC.

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Photo of Louis D. Greenstein Louis D. Greenstein

Louis is Co-Chair of the SEC Enforcement & Litigation team for the Government Investigations and White Collar Litigation Department. For more than 20 years, Louis has represented financial services firms, corporations, their boards, officers, directors and employees in investigations by the Securities and…

Louis is Co-Chair of the SEC Enforcement & Litigation team for the Government Investigations and White Collar Litigation Department. For more than 20 years, Louis has represented financial services firms, corporations, their boards, officers, directors and employees in investigations by the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the United States Department of Justice, and state regulatory agencies.

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Photo of Charles McIntyre Charles McIntyre

Chuck is chair of the firm’s government, regulatory and criminal investigations department. He counsels clients in the areas of federal and state securities laws, accountants’ liability, class actions against publicly held corporations, False Claim Act (FCA), qui tam litigation, and investigations by various…

Chuck is chair of the firm’s government, regulatory and criminal investigations department. He counsels clients in the areas of federal and state securities laws, accountants’ liability, class actions against publicly held corporations, False Claim Act (FCA), qui tam litigation, and investigations by various federal and state government entities and Congress involving civil and criminal matters. He has appeared in federal and state courts, before the American Arbitration Association, and has represented individuals and companies before the SEC, the Inspector General, the DOJ and Congress.

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Photo of Mona G. Mohib Mona G. Mohib

Mona is a senior vice president in the Federal Public Affairs Group at McGuireWoods Consulting where she advises clients on a variety of issues and maintains many contacts on Capitol Hill. She is also a member of the firm’s national practice where she…

Mona is a senior vice president in the Federal Public Affairs Group at McGuireWoods Consulting where she advises clients on a variety of issues and maintains many contacts on Capitol Hill. She is also a member of the firm’s national practice where she serves as a primary liaison with Democratic state and local elected officials across the country.

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Photo of Susan C. Rodriguez Susan C. Rodriguez

Susan, co-leader of the firm’s financial institutions industry team, primarily focuses on government investigations and complex civil litigation. She has defended clients in numerous government enforcement actions by the Department of Homeland Security, Department of Justice, Consumer Financial Protection Bureau (CFPB), and the…

Susan, co-leader of the firm’s financial institutions industry team, primarily focuses on government investigations and complex civil litigation. She has defended clients in numerous government enforcement actions by the Department of Homeland Security, Department of Justice, Consumer Financial Protection Bureau (CFPB), and the Federal Trade Commission (FTC), among others. In addition to representing individuals and companies in federal and state court, Susan has experience in dealing with the financial services, communication, transportation, and defense industries. She has also represented individuals and companies in response to congressional inquiries and investigations.

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Photo of L. F. Payne, Jr. L. F. Payne, Jr.

L.F. is a businessman who served in the U.S. House of Representatives from 1988 until 1997, representing Virginia’s 5th Congressional District.

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Photo of Patrick Rowan Patrick Rowan

Pat’s practice focuses on criminal and civil enforcement proceedings and internal investigations. He has substantial experience in federal law enforcement, as well as international and national security matters. He also advises corporate clients on compliance with the Foreign Corrupt Practices Act, the ITAR…

Pat’s practice focuses on criminal and civil enforcement proceedings and internal investigations. He has substantial experience in federal law enforcement, as well as international and national security matters. He also advises corporate clients on compliance with the Foreign Corrupt Practices Act, the ITAR, the EAR and OFAC regulations.

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Photo of Todd R. Steggerda Todd R. Steggerda

Todd Steggerda is Chair of the firm’s Government Investigations and White Collar Litigation department, which was recently recognized by Law360 as a Practice Group of the Year. In a dynamic practice spanning nearly 20 years in Washington, Todd has resolved a diverse range…

Todd Steggerda is Chair of the firm’s Government Investigations and White Collar Litigation department, which was recently recognized by Law360 as a Practice Group of the Year. In a dynamic practice spanning nearly 20 years in Washington, Todd has resolved a diverse range of high-stakes government investigations and regulatory enforcement matters for companies operating in the defense, national security, technology, healthcare and other sectors, including dozens of matters investigated by the civil and criminal divisions of the Department of Justice and the Department of Defense. Todd previously served as Chief Counsel to a Presidential Campaign.

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Photo of Robert K. Wasinger Robert K. Wasinger

Robert Wasinger joined McGuireWoods Consulting in February 2017 after serving as director of Senate and Gubernatorial outreach for the Trump for President campaign. In that capacity, he was responsible for War Room – Election Day operations including recruitment and placement of precinct monitors…

Robert Wasinger joined McGuireWoods Consulting in February 2017 after serving as director of Senate and Gubernatorial outreach for the Trump for President campaign. In that capacity, he was responsible for War Room – Election Day operations including recruitment and placement of precinct monitors in six states, and monitoring of precinct trends for the state of Pennsylvania.

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Photo of Government Investigations Group Government Investigations Group

Government investigations and related enforcement actions and litigation can take many forms, but they have one element in common: They require seasoned counsel to help clients navigate these difficult situations when their businesses and reputations are on the line. McGuireWoods’ national Government Investigations…

Government investigations and related enforcement actions and litigation can take many forms, but they have one element in common: They require seasoned counsel to help clients navigate these difficult situations when their businesses and reputations are on the line. McGuireWoods’ national Government Investigations & White Collar Litigation Department has the experience and credibility clients have come to trust with their most sensitive matters.

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