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All Things Investigations

All Things Investigations: FCPA Alert Week Sam Salyer on Highlights and Trends from the 2024 FCPA Alert

Welcome to the Hughes Hubbard Anti-Corruption & Internal Investigations Practice Group’s podcast, All Things Investigation. This week, we will feature five lawyers from HHR to introduce the firm’s always popular and annual FCPA and Anti-Bribery Alert. In part 5 of the 5-part series, host Tom Fox is joined by Sam Salyer on some key trends and highlights in enforcement and compliance from 2024.

Tom and Sam explore the smaller number of corporate enforcements and the significance of four individual trials, including the notable Myrta and Aguilar cases. Sam elaborates on the DOJ’s updated Evaluation of Corporate Compliance Programs (ECCP), emphasizing the importance of emerging risks and technology. They also delve into the DOJ’s new whistleblower program, its implications for internal compliance professionals, and the potential effects of the recently signed Foreign Extortion Prevention Act. This episode is a comprehensive wrap-up for compliance officers and legal professionals aiming to stay ahead in 2024.

Key highlights:

  • Enforcement and Compliance in Brazil
  • Enforcement in France and the Success of the Paris Olympics in Compliance
  • ESG for US companies under the Trump Administration

Resources:

Hughes Hubbard & Reed website

2024 Fall FCPA and Anti-Bribery Alert

Sam Salyer

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All Things Investigations

All Things Investigations: FCPA Alert Week Tamara Kraljic on International Lessons Learned in 2024

Welcome to the Hughes Hubbard Anti-Corruption & Internal Investigations Practice Group’s podcast, All Things Investigation. This week, we will feature five lawyers from HHR to introduce the firm’s always popular and annual FCPA and Anti-Bribery Alert. In this fourth podcast of the 5-part series, host Tom Fox is joined by Tamara Kraljic on the key lessons learned in anti-corruption compliance and from international enforcement in 2024.

Their conversation opens with an overview of the alert’s key findings, particularly the developments in international anti-corruption enforcement. They delve into updates from Brazil, including the 10-year anniversary of the Clean Company Act and new measures by Brazil’s Office of the Comptroller General (CGU), like the ‘term of commitment’ and updated integrity program guidelines. Additionally, they touch upon France’s anti-corruption efforts, reflecting on the corporate culture of compliance and the impact of the recent Corporate Sustainability Reporting Directive (CSRD). The episode provides a comprehensive overview geared towards a corporate audience interested in anti-corruption trends and regulations.

Key highlights:

  • Enforcement and Compliance in Brazil
  • Enforcement in France and the Success of the Paris Olympics in Compliance
  • ESG for US companies under the Trump Administration

Resources:

Hughes Hubbard & Reed website

2024 Fall FCPA and Anti-Bribery Alert

Tamara Kraljic 

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All Things Investigations

All Things Investigations: FCPA Alert Week – Dan McLaughlin on Lessons Learned in 2024

Welcome to the Hughes Hubbard & Reed Anti-Corruption & Internal Investigations Practice Group’s podcast, All Things Investigation. This week, we will feature five lawyers from HHR to introduce the firm’s always popular and annual FCPA and Anti-Bribery Alert. In this third podcast of the 5-part series, host Tom Fox is joined by Dan McLaughlin on the key lessons learned in anti-corruption compliance and from FCPA enforcement in 2024.

In this episode, they explore the recurring lessons learned regarding third-party agents, the importance of due diligence, and the implications of the DOJ’s new policies. The conversation also highlights the significance of understanding ultimate beneficial ownership and the resurgence of gifts and entertainment as compliance risks. The discussion emphasizes the need for robust compliance programs and proactive risk management strategies.

Key highlights:

  • The Continuing Risks from Third Parties
  • M&A Safe Harbor
  • The Ongoing Challenges from Gifts, Travel and Entertainment

Resources:

Hughes Hubbard & Reed website

2024 Fall FCPA and Anti-Bribery Alert

Dan McLaughlin

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All Things Investigations

All Things Investigations: FCPA Alert Week – Mike DeBernardis on the FCPA & Anti-Bribery 2024 Alert

Welcome to the Hughes Hubbard & Reed Anti-Corruption & Internal Investigations Practice Group’s podcast, All Things Investigation. This week, we will feature five lawyers from HHR to introduce the firm’s always popular and annual FCPA and Anti-Bribery Alert. In this first podcast of the 5-part series, host Tom Fox joined Mike DeBernardis to introduce the Alert and some key themes and highlights from the FCPA and anti-bribery in 2024.

In the inaugural episode celebrating the Hughes Hubbard & Reed FALL 2024 FCPA and Anti-Bribery Alert, Tom is joined by Mike DeBernardis. They delve into the significance of Hughes Hubbard & Reed being the first major firm to release their FCPA alert each year and discuss the creative introduction themed around 1999 movies, including a quote from ‘The Matrix.’ The Alert is segmented into four comprehensive chapters covering analysis, policy developments, corporate resolutions, international focus, and updates from multilateral development banks. Key trends such as treating past misconduct and encouraging whistleblowing are highlighted, along with an ongoing issue of gifts and hospitality in corporate resolutions. The audience is encouraged to access the report on the firm’s website for more detailed insights.

Key highlights:

  • Overview of the FCPA and Anti-Bribery Alert
  • The Matrix Quote and Its Relevance
  • Detailed Breakdown of the 2024 Alert
  • Key Highlights and Trends
  • Focus on Gifts and Hospitality

Resources:

Hughes Hubbard & Reed website

2024 Fall FCPA and Anti-Bribery Alert

Mike DeBernardis

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All Things Investigations

All Things Investigations: Jan Dunin-Wasowicz and Jeff Nielsen on The EU Directive on Harmonization of Criminal Sanctions

Welcome to the Hughes Hubbard Anti-Corruption & Internal Investigations Practice Group’s podcast All Things Investigation. In this podcast, Tom Fox is joined by Jan Dunin-Wasowicz a partner at Hughes Hubbard & Reed, who is a leading figure in trade sanctions and Jeff Nielsen, International Sanctions & Export Controls Lawyer at Rambol, for a deep dive into current issues in export control and economic sanctions.

In Part 2 of a special two-part series on All Things Investigations, host Tom Fox is once again joined by Jeff Nielsen and Jan Dunin-Wasowicz to discuss trade sanctions from a global perspective. In this Part 2, Jeff and Jan provide their expertise on the EU Directive on Harmonization of Criminal Sanctions, detailing its implications and the challenges faced in its implementation across the 27 member states.

They explain the mechanics of EU sanctions, enforcement disparities among member states, and the directive’s focus on setting minimum standards for criminal offenses. The conversation also delves into future outlooks on the EU’s stance towards the Russian invasion of Ukraine and the evolving profession of trade sanctions compliance.

Key Highlights:

  • Understanding the EU Directive on Harmonization of Criminal Sanctions
  • Challenges and Implications of the Directive
  • Future of Trade Sanctions and Compliance
  • Career Advice for Aspiring Trade Sanction Experts
  • Conclusion and Final Thoughts

Resources:

Hughes Hubbard & Reed website

Jeff Nielsen on LinkedIn

Jan Dunin-Wasowicz on LinkedIn

HHR client alert on The Dawn of a New Era for EU Sanctions Enforcement? EU Adopts Directive on the Definition of Criminal Offences and Penalties for the Violation of EU Sanctions

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All Things Investigations

All Things Investigations: Compliance Lessons from Gunvor and Trafigura Enforcement Actions

Welcome to the Hughes Hubbard Anti-Corruption & Internal Investigations Practice Group’s podcast, All Things Investigation. In this podcast, I joined by Mike DeBernardis to mine compliance lessons from the recently announced Gunvor and Trafigura FCPA enforcement actions.

Mike DeBernardis is a seasoned professional with a comprehensive understanding of FCPA enforcement actions and compliance matters, a perspective deeply informed by his numerous client advisory roles on self-disclosure decisions related to FCPA violations and his regular participation in industry discussions.

DeBernardis believes that FCPA enforcement actions are increasingly considering past misconduct as a determinant in assigning penalties and discounts. He underscores the necessity for companies to be proactive and innovative in their remediation efforts rather than simply adhering to minimal compliance standards. He also notes a decrease in the reliance on external monitors in FCPA resolutions, potentially due to businesses taking more initiative in improving their compliance programs and directly reporting to the DOJ.

In DeBernardis’ view, the Department of Justice’s approach to FCPA enforcement is dynamic and adaptive, with companies helping shape best practices through their communication with outside counsel and the DOJ itself.

Key Highlights:

  • Impact of Self-Disclosure on FCPA Penalties
  • DOJ’s Quantifiable Self-Disclosure Benefits in FCPA
  • Cross-Regional Executives in Trafigura Bribery Scheme
  • Innovative Risk Mitigation Strategies in FCPA
  • Rewarding Compliance Efforts in Energy Trading

Resources:

Hughes Hubbard & Reed website

Mike DeBernardis

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All Things Investigations

All Things Investigations: The FCPA Unit in the DOJ with Laura Perkins

In this episode of All Things Investigations, Tom Fox and Laura Perkins delve into the workings of the FCPA unit within the fraud section of the Department of Justice. This unit, pivotal in investigating and prosecuting Foreign Corrupt Practices Act violations, operates within a robust hierarchy and collaborates extensively with other agencies.

Laura Perkins is a Hughes Hubbard partner whose practice focuses on representing clients in Foreign Corrupt Practices Act and white collar criminal investigations. She also advises clients on issues related to the FCPA, the federal securities laws, the False Claims Act, and other federal statutes. 

 

You’ll hear Tom and Laura discuss:

  • There was a recent transition in leadership within the DOJ’s FCPA unit, with an acting head taking the reins. Such changes can potentially shift the direction or focus of the unit.
  • The FCPA unit maintains a collaborative approach, liaising closely with other agencies such as the IRS, FBI, and the Department of State, ensuring a holistic investigative process.
  • Despite being two distinct units, the DOJ’s FCPA and the SEC’s FCPA work closely during parallel investigations. However, certain limitations arise from grand jury issues, preventing complete sharing.
  • Operating within the fraud section, this unit plays an instrumental role in evaluating corporate compliance programs, selecting compliance monitors, and contributing to policy developments and department-wide initiatives.
  • The Corporate Enforcement, Compliance, and Policy Unit has the task of handling FOIA requests, underscoring its role in promoting transparency and information access.
  • The relationship between the chief of the FCPA unit and the head of the fraud section is important as their interactions can potentially influence the direction and outcome of cases.
  • The fraud section provides weekly case summaries to the Deputy Assistant Attorney General’s office. This demonstrates the department’s diligent and ongoing monitoring and reporting system.
  • The FCPA unit doesn’t operate in isolation; it partakes in international collaborations on bribery issues, highlighting its commitment to global anti-corruption efforts.

 

KEY QUOTES

“[In] the FCPA unit, prosecutors and supervisors handle investigations and cases involving Foreign Corrupt Practices Act or potential Foreign Corrupt Practices Act violations.” – Laura Perkins

 

“[The DOJ and SEC have] a very close relationship, and often cases are worked in parallel, not necessarily jointly, because there are potential discovery issues that can be created if it’s a joint investigation.” – Laura Perkins

 

“The [Corporate Enforcement, Compliance and Policy Unit] has a major role in assisting prosecutors in evaluating corporate compliance programs as well as overseeing any compliance monitors that are put in place.” – Laura Perkins

 

Resources

Hughes Hubbard & Reed website 

Laura Perkins on LinkedIn

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All Things Investigations

All Things Investigations: Episode 32 – Update on Trump Indictment, Target Letter and Michigan Electors with Kenyen Brown and Kevin Carroll

Tom Fox and guests Kenyen Brown and Kevin Carroll take a deep dive into the legal drama surrounding President Trump. On this week’s episode of All Things Investigations their seasoned attorneys walk us through three major legal events that unfolded in a momentous week. They uncover the delicate balance of political and legal intrigue, explain court strategies, and reveal the ins and outs of the judicial process.

 

Kevin Carroll and Kenyen Brown are partners at Hughes Hubbard & Reed. Kevin served as a senior counsel to the House Homeland Security Committee. Kenyen is a former United State Attorney. 

You’ll hear Tom, Kenyen and Kevin discuss:

  • The surprising lack of preparation on President Trump’s defense team’s part. They were surprised by the lack of a structured legal argument and the pleading for a trial after the election.
  • Is there any merit to the defense’s claim that the amount of information to be reviewed necessitates a delay? Kenyen and Kevin agree that the defense might be asking for too long of a delay; however, they do not rule out a timeline extension due to the volume of documents involved.
  • Trump’s defense does not have a large legal team to sift through the discovery material.
  • They examine the defense strategy, in particular the call for the trial not to be held before the election. Such a privilege is not usually granted to typical defendants.
  • Kevin voices his concerns over the defense’s public statements, questioning the judge’s hesitance in issuing gag orders. Kenyen speculates that the choice of the federal district for this case could be strategic on the part of the Justice Department, aiming for a more credible verdict.
  • They discuss Trump’s announcement about receiving a target letter from Jack Smith, and its implications. They believe that it indicates that the Special Counsel believes there is already probable cause to indict Trump.
  • Tom wonders if Smith’s motivation was to pre-empt any indictment that might have been made by the state of Georgia.
  • Kevin speculates that the Justice Department might have been embarrassed by the January 6 Committee progressing far ahead of their investigation. He posits that it would be even more mortifying if a smaller District Attorney’s office managed to build a significant conspiracy and racketeering case against the President while the DOJ was lagging behind.
  • Kenyen emphasizes that justice should be their main focus and he would hope that the pace of Smith’s actions is determined by the facts and evidence he has, rather than being influenced by a state prosecutor’s progress.
  • Would the District of Columbia be an appropriate venue for a case involving the January 6 insurrection? Kevin believes so since most of the activity relating to January 6, including the preparation and the event itself, happened in DC.
  • Tom asks Kenyen and Kevin for their views on this matter of the recent announcement from the Attorney General of Michigan, who charged a series of persons claiming to be electors from Michigan but who were in fact fraudulent. 
  • Kevin finds it interesting that Federal Prosecutor Smith is also examining the fake elector scheme. He labels the indictment as apt and defines the false claims of electoral victory as fraudulent.
  • Kenyen remarks on the difficulties of prosecuting election fraud cases due to allegations of partisanship. He underlines the necessity to protect the integrity of the election system. 
  • Kevin discusses an incident in Michigan, where meetings were apparently recorded in which fake electors were selected.

 

KEY QUOTES

“I would hope that federal authorities are not motivated by what might be taking place in a parallel state jurisdiction. In other words, your master in these circumstances is supposed to be justice…” – Kenyen Brown

 

“Having investigated a few instances of election fraud cases in Alabama that ended up not being accurate or true, it’s almost a no win for the prosecutor because there are going to be allegations of partisanship regardless of the outcome of the merit of your case. Nonetheless, you do it to protect the integrity of the election system.” – Kenyen Brown

 

“The only thing worse than getting a target letter from the Justice Department is when everybody else who was involved in the crime, except you, didn’t get a target letter, they suggest that everybody’s cooperating against you.” – Kevin Carroll

 

“It’s super interesting because we all know that the federal Prosecutor Smith is also looking at the fake elector scheme because he specifically subpoenaed some individuals who were electors or state election officials in the different states that the results were in question legitimately or illegitimately. It’s a very apt indictment. It’s a fraud.” – Kevin Carroll

 

Resources

Hughes Hubbard & Reed website

Kevin Carroll on LinkedIn

Kenyen Brown on LinkedIn

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All Things Investigations

All Things Investigations: Episode 28 – New French Anti-Corruption Investigative Guidance with Anne Gaustad and Bryan Sillaman

 

The new French Investigative Guidance, jointly introduced by the AFA (Agence Française Anticorruption) and PNF (Parquet National Financier), discusses the appropriate methodology for carrying out internal investigations, specifically concerning corruption-related instances. In this episode of All Things Investigations, law experts Anne Gaustad and Bryan Sillaman join hosts Tom Fox and Mike DeBernardis to provide a detailed overview of the guide, contrasting the similarities and differences with US guidelines, and the implications it holds for US companies.

Anne Gaustad is an accomplished French lawyer and an authority in white-collar crime and compliance matters. With over 15 years of professional experience, Anne’s practice focuses on cross-border investigations and compliance matters, notably regarding corruption, fraud, and money laundering. 

 

Bryan Sillaman is a seasoned American lawyer based in Paris. As a partner at Hughes Hubbard & Reed, Bryan has worked extensively on matters related to the US Foreign Corrupt Practices Act (FCPA), French anti-corruption law (Sapin II), and other international anti-corruption laws. 

 

You’ll hear Tom, Mike, Anne and Bryan discuss:

  • The French Investigative Guidance is not covered by secret professional or French legal privilege, making its contents publicly accessible.
  • The new guide was jointly issued by the AFA and PNF agencies to provide comprehensive guidance on conducting internal investigations.
  • While there are similarities to US guidelines, the French guide incorporates the civil law tradition, stringent labor requirements, data privacy considerations, and whistleblower regimes.
  • The French legal privilege holds an absolute character, and it’s a criminal violation for French lawyers to breach it.
  • The new guide underscores the importance of transparency in data collection during internal investigations.
  • French blocking statutes and GDPR regulations may pose potential challenges to US-based companies.
  • The French guide, while non-binding, provides practitioners with comprehensive instructions for conducting internal investigations.
  • The guide puts a strong emphasis on understanding the nuances of French labor law.
  • The guide also encourages informing interviewees of the voluntary nature of their participation in investigations.

 

KEY QUOTES:

“The French Investigative Guidance represents a significant shift in the internal investigations landscape.” – Anne Gaustad

 

“It’s crucial for American lawyers to grasp the nuances of French labor law and privilege issues.” – Bryan Sillaman

 

“Transparency in data collection during internal investigations is key to avoiding legal repercussions.” – Anne Gaustad

 

Resources:

Hughes Hubbard & Reed website

Anne Gaustad on LinkedIn

Bryan Sillaman on LinkedIn

Guide (in original French)

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All Things Investigations

All Things Investigations: Episode 26 – The ITC – The Most Important Court You’ve Never Heard Of with Andrew Kopsidas

Did you know about a powerful court that handles investigations of products imported into the US? On this episode of All Things Investigations, host Tom Fox sits down with Andrew Kopsidas to discuss the International Trade Commission (ITC). Andrew walks Tom through the ins and outs of the ITC, including its broad definition of unfair trade practices, the plaintiff and defendant roles, and the power of the agency to bar products from entering the US. He also shares insights on the speed of ITC cases, the role of administrative law judges, and the importance of having good ITC counsel.

Andrew Kopsidas is a litigation and strategic consulting expert with over 20 years of experience in intellectual property (IP) matters. He graduated from George Washington University Law School in 1999, after earning a degree in aerospace engineering from the University of Maryland. Kopsidas is a partner at Hughes Hubbard & Reed, where he advises clients on litigation and strategic counseling matters related to IP.

 

You’ll hear Tom and Andrew discuss these ideas:

  • The ITC is a federal agency that investigates unfair trade practices related to international trade, with the power to bar products from entering the US.
  • Any company that has a domestic industry in the US and is facing imports of products made in a foreign country using unfair trade practices can file a complaint with the ITC.
  • Unfair trade practices can include patent and trademark infringement, trade secret misappropriation, false advertising, and more.
  • ITC cases move quickly, with only 30 days to prepare for discovery and respond to requests, making it crucial for in-house counsel to act fast and get management buy-in.
  • Administrative law judges are the fact-finders in ITC cases, and their credibility determinations can be influenced by the reputation of the lawyers involved.
  • ITC lawyers must have knowledge of the nuances of ITC practice and be able to work with the Office of Unfair Import Investigations and persuade them that their side of the case is right.
  • Andrew emphasizes early assessment of cases. He recommends organizing a scrub session with the outside litigation team and employees to go through the merits of the case. He points out that it’s important to consider the client’s objectives to find the best solution for their business.
  • The ITC litigation process is strictly one way, with no counterclaims, and the respondent is always on the receiving end.
  • The government attorneys at the ITC are neutral and trained to represent the public interest. They participate in discovery and give their opinion right before the trial.
  • Going on the offensive is an essential strategy for a defendant in an ITC case. For example, a defendant can file their ITC action as a counteraction, file district court actions, or refuse to stay the district court case.
  • Trials in the ITC can be a lot like a district court, but without a jury. The rules of evidence are not as stringent as in district court.
  • Companies should take ITC cases seriously and avoid hiring inexperienced counsel as there is a lot of nuance to ITC practice.

 

KEY QUOTES

“I’ve seen a lot of good lawyers stumble in the ITC because they just weren’t familiar with the nuance of practice.” – Andrew Kopsidas

 

“If a company isn’t taking things seriously, the case can be lost before it’s practically even begun.” – Andrew Kopsidas

 

“The first question I like to ask clients is, What’s your business objective here? We as litigators a lot of times want to think that what we do is the be all and end all. Really we’re just a tool for these companies that have broader business objectives and we need to keep that in perspective.” – Andrew Kopsidas

 

Resources:

Hughes Hubbard & Reed website

Andrew Kopsidas on LinkedIn

ITC Spotlight

You’ve Been Sued – Part 1

You’ve Been Sued – Part 2