The nation is slowly reopening. Businesses showcase signs that proudly announce “OPEN” in bright neon letters. But the legal landscape is different from the pre-COVID-19 days, and businesses should be aware of the inherent risks involved with re-opening and take the utmost care to ensure employee and customer safety to avoid or minimize government intrusion,
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Fraud Prosecutions on the Horizon: What to Expect in the Near Future from the DOJ
On March 20, 2020, the Attorney General ordered the Department of Justice (“DOJ”) to prioritize oversight, investigation, and prosecution of misuse of federal funds distributed in response to the COVID-19 pandemic.[1] Now, almost six months later, the DOJ continues to examine instances of “COVID-19 Fraud” for possible civil or criminal prosecution. The DOJ’s prioritization
Too Little Too Late: DOJ Releases FCPA Opinion that Provides a Generic Analysis
Late last week, the Department of Justice (DOJ) issued a Foreign Corrupt Practices Act (FCPA) Opinion 20-1, its first such opinion in almost six years. In the Opinion, the DOJ advised a U.S.-based investment advisor that the DOJ did not intend to take any enforcement action related to the payment of certain fees to a
So . . . What Exactly Makes Insider Trading Illegal?
This is the question recently asked by Gene Levoff, a former attorney at a large technology firm traded on the NASDAQ stock exchange. The indictment against Mr. Levoff charges him with securities fraud and alleges that between 2011 and 2016, Mr. Levoff used material non-public information to trade securities before his employer’s securities commission filings
Is Non-Public Information Compliance Worth A Thousand Words: Lessons from Kodak
On Tuesday July 28, Eastman Kodak, Co. in conjunction with the Trump Administration publicly announced that Kodak would receive a $765 million loan for purposes of manufacturing generic drug ingredients. Just a few days later, Senator Elizabeth Warren (D-Mass.) penned a letter to Securities and Exchange Commission Chairman Jay Clayton demanding an investigation into the
Charges and Guilty Pleas Continue in DOJ’s Ongoing Antitrust Investigation of Generic Drug Market
On July 23, 2020, the U.S. Department of Justice, Antitrust Division (“DOJ”) announced charges against Taro Pharmaceuticals U.S.A., Inc. as part of an ongoing federal antitrust investigation of price fixing, bid rigging, and market allocation in the generic drug market. Taro is the sixth company charged in the investigation, five of which (including Taro) have
False Claims Act Liability for Government Stimulus Funds: A Primer for First Time Recipients of Federal Money
The federal government has been handing out billions of dollars in stimulus money to individuals and companies. These funds have helped businesses survive the COVID-19 pandemic by providing them with low or no-cost liquidity when they are not permitted to operate as they would normally. But stimulus money, like all government money, is a double-edged
Federal Charges Filed Against Toledo City Councilmembers
On June 30, 2020, the U.S. Attorney’s Office for the Northern District of Ohio filed a criminal complaint charging four Toledo City Councilmembers and a local attorney for their participation in an alleged years-long bribery and extortion scheme. These charges add to a long line of public corruption cases brought by federal prosecutors in Ohio
United States v. Pisarski
On July 10, 2020, the Ninth Circuit issued an unusual 2-1 decision affirming a California federal district court’s injunction against the further prosecution of two California marijuana growers, Anthony Pisarski and Sonny Moore. United States v. Pisarski, 2020 U.S. App. LEXIS 21564 (9th Cir. 2020). These defendants had pleaded guilty to federal possession and distribution
Insider Impacts of COVID-19: Securities Trades and Tipped Information in a COVID-19 Landscape
On July 2, 2020, a federal judge sitting in Manhattan sentenced disgraced entrepreneur Telemaque Lavidas to a year and a day in prison for insider trading. In addition to the prison term, the judge sentenced Lavidas to three years of supervised release including community service, restitution, and fines, which together could exceed $200,000. Lavidas’s conviction