White Collar Law & Investigations

The Foley Hoag White Collar Law & Investigations blog addresses the developing regulatory environment that confronts businesses and individuals in virtually any industry.  Whether federal or state investigations, enforcement actions, changing enforcement priorities, criminal prosecutions or related civil proceedings, the White Collar Law & Investigations blog will provide regular coverage and updates that draw on the deep experience of Foley Hoag’s White Collar Crime & Government Investigations practice.

Latest from White Collar Law & Investigations

In Lorenzo v. Securities and Exchange Commission, No. 17-1077, the Supreme Court held that an investment banker had committed securities fraud by copying and pasting false statements prepared by his supervisor into emails to prospective investors, even though he was not on the hook for making the statements himself. The decision focuses on Rule 10b-5 of the Securities and Exchange Commission, which contains three subsections. Subsection (b) prohibits “mak[ing] any untrue statement of a material…
Recently, in Lorenzo v. Securities and Exchange Commission, No. 17-1077, the Supreme Court held that an investment banker had committed securities fraud by copying and pasting false statements prepared by his supervisor into emails to prospective investors, even though he was not on the hook for making the statements himself. The decision focuses on Rule 10b-5 of the Securities and Exchange Commission, which contains three subsections. Subsection (b) prohibits “mak[ing] any untrue statement of a…
We hope this blog serves as a forum for spirited debate, challenge, and comment.  The attorneys in our White Collar Crime and Government Investigations practice group have a wide array of diverse experiences that we hope to share with you here.  While we are white-collar defense lawyers, many among us are former federal and state prosecutors, and we appreciate the demands of justice even as we provide our clients a vigorous legal defense.  The topics…
Recently, a Florida federal judge dismissed the Department of Justice’s (DOJ) False Claims Act (FCA) allegations against a compounding drug pharmacy and the pharmacy’s private equity (PE) owner.  For two reasons, the case may be illustrative of the DOJ’s increasingly aggressive pursuit of what it perceives as fraud within the healthcare industry. First, it is noteworthy that DOJ suffered a dismissal of its FCA claims.  This case began as yet another qui tam/relator claim. …
The Second Circuit recently decided a pair of insider trading cases that provide additional guidance on the law following the court’s 2017 decision in Martoma.  In United States v. Klein, 2019 U.S. App. LEXIS 858 (2d Cir. Jan. 10, 2019), the Second Circuit upheld Defendant Schulman’s insider trading conviction. Schulman, the “tipper,” did not directly trade on material, non-public information, but rather shared it with Klein, a tippee, who did. On appeal, Schulamn argued that…
The First Circuit recently revisited the pleading standard for retaliation claims under the False Claims Act, and reiterated its prior position that such claims are not subject to the same heightened pleading standard as direct FCA violation claims. In Guilfoile v. Shields, 913 F.3d 178 (1st Cir. 2019), a former president for a group of healthcare entities that provided specialty pharmacy services to hospitals alleged the entities offered illegal “referral fees” to a consulting group…
On January 28, 2019, the Department of Justice announced that a 13-count indictment against Chinese telecommunications conglomerate Huawei Technologies Co. Ltd. and various affiliated parties was unsealed earlier that day.  Huawei is charged with bank fraud, wire fraud, violations of the International Emergency Economic Powers Act, obstruction of justice, and various related conspiracy charges. All charges in the indictment stem from Huawei’s alleged long-standing ploy to deceive financial institutions and the U.S. Government with respect…
While it is often said that “you have to spend money to make money,” it is less often said, but equally true, that you have to spend money to avoid spending a whole lot more money later.  For a bank, investing in a strong Bank Secrecy Act (“BSA”) Officer with an ample anti-money laundering (“AML”) compliance staff could help avoid significant expense down the road. The BSA, 31 U.S.C. § 5311, et seq., requires each…
The Department of Justice (DOJ) announced recently that it reached a $63.5 million settlement with pathology lab Inform Diagnostics related to allegations of False Claims Act (FCA) and Stark Law violations.  The government alleged that the company had illegally provided referral-source doctors with subsidies for electronic health records (EHR) systems and free or discounted technology consulting services.  The case, which developed out of a whistleblower complaint, was prosecuted as a civil matter with the coordination…