White Collar Briefly

Insights into Developments in White Collar Law

After software developer Jitesh Thakkar‘s criminal trial on “spoofing”-related charges ended in a mistrial two weeks ago, the Government determined it will not seek to retry the case.  Thakkar was originally charged with conspiracy to commit spoofing and with two counts of spoofing arising out of his company’s development of software that enabled a London-based trader to more efficiently spoof the market for E-Mini S&P 500 futures contracts.  The trial judge granted Thakkar’s mid-trial…
Following a week of trial proceedings in the case of defendant Jittesh Thakkar—a software programmer indicted in February 2018 on conspiracy and aiding and abetting charges related to a spoof trading scheme—the government’s case against Thakkar ended in a mistrial.  The jurors could not reach a unanimous verdict on the two aiding-and-abetting spoofing counts charged in his indictment, after spending more than a day on deliberations.  It was reported that ten out of the…
The U.S. Supreme Court recently handed down a win for the SEC and private securities litigants, significantly broadening the scope of primary liability under Rule 10b-(5).  In Lorenzo v. SEC, the Court held that liability under Rules 10b-5(a) and (c)—which make it unlawful to employ a scheme to defraud or engage in any practice that operates as a fraud—is not limited only to those who make false or misleading statements as contemplated under sister-section…
Can a software programmer be held criminally responsible for designing a program that a trader uses to “spoof” the commodity futures market?  This is the question posed to the jury in U.S. v. Thakkar, 18-cr-36 (N.D. Ill.), which trial began this week in federal court.  The case grew out of the manipulative trading activities of Navinder Sarao, a London-based commodities trader who “spoofed” (i.e., placed bids or offers with the intention of canceling them before…
The U.K. Modern Slavery Act of 2015 requires companies falling under its jurisdictional hook to honestly and completely disclose their efforts to eradicate trafficked, slave, indentured, coerced and child (collectively “forced”) labor from their supply chains. This, like many things in the compliance world, is easier said than done.  As discussed in this Client Update, only a small percentage of companies have implemented disclosures that fully meet the letter (or spirit) of these laws. Read
The arrests in the college admissions bribery scandal may have ushered in a new era of scrutiny by federal law enforcement.  Perkins Coie attorneys anticipate questions that prosecutors, civil litigants and the public may ask in the weeks and months ahead, and offer six key foundational steps all institutions of higher learning should take immediately to evaluate their own admissions process. Click here to read the full article.
On March 6, 2019, the Division of Enforcement of the U.S. Commodity Futures Trading Commission (“CFTC”) issued a new Enforcement Advisory on self-reporting violations of the Commodity Exchange Act (“CEA”) involving foreign corrupt practices.  Under the Advisory, the Division provided guidance that it might recommend no civil monetary penalties for certain non-registrants that voluntarily and timely self-report, fully cooperate, and appropriately remediate.  The Advisory’s release was accompanied by formal remarks from CFTC Enforcement Director James…
During the financial crisis, government enforcement agencies started taking a hard look at Wall Street institutions, and these days a company must respond proactively and dynamically when addressing the challenges of government investigations and litigation.  Perkins Coie’s Adam H. Schuman and Kraft Heinz’s Prasanth R. Akkapeddi detail some key takeaways for both in-house and outside counsel. Click here to read the full article.  …
In United States v. Hoskins, 902 F.3d 69 (2d Cir. 2018) the Second Circuit held that a non-resident foreign national cannot be criminally liable for aiding and abetting or conspiring to violate the FCPA unless the government can establish that such an individual acted as an agent of one of the categories of persons subject to liability as a principal. Background The DOJ charged Lawrence Hoskins, a British national and former Alstom UK executive based…
Federal sentencing guidelines for economic crime have long been subject to criticism due to high dollar loss amounts that can produce eye-popping prison terms. Adding to the fodder, a new report issued by the United States Sentencing Commission found that securities and investment fraud offenders received the longest average sentences under the U.S. Sentencing Guidelines—more than twice as long as the average sentence for all economic crime offenders.  The report, What Does Federal Economic Crime Really…