Posts Tagged With Miscellaneous

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Eighth Circuit Affirms Jail Sentences for Responsible Corporate Officers in DeCoster

On July 6, in a two-to-one decision, the Eighth Circuit affirmed the three-month prison sentences entered against Jack and Peter DeCoster, who both pled guilty to misdemeanor violations of the Food, Drug, and Cosmetic Act (“FDCA”) as “responsible corporate officers” of Quality Egg, LLC, for introducing salmonella-contaminated eggs into interstate commerce.  The DeCosters argued that their sentences were disproportionate to their crimes because they did not know the eggs were contaminated at the time they
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Volkswagen to Spend up to $14.7 Billion to Settle Allegations of Cheating Emissions Tests and Deceiving Customers on 2.0-Liter Diesel Vehicles

On June 28, Deputy Attorney General Sally Q. Yates announced DOJ and FTC settlements with Volkswagen AG in relation to VW’s use of illegal software to defeat emissions tests in violation of EPA regulations.  Of the $14.7 billion settlement, up to $10.03 billion is allocated to compensate nearly 500,000 consumers that leased or purchased model year 2009 to 2015 2.0-liter diesel vehicles.  In addition to its program that will allow drivers to return illegal-emissions vehicles
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Former Connecticut Resident Charged With Attempting to Travel to China with Stolen U.S. Military Program Documents

On December 9, the Government announced that Yu Long had been arrested on a criminal complaint and charged with attempting to travel to China with sensitive proprietary documents that set forth detailed equations and test results used in the development of technologically advanced titanium for U.S. military aircraft.  The documents were taken from a Connecticut defense contractor where Long had been employed.  Since 1989, the United States has imposed a prohibition upon the export to
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Trader Indicted for Allegedly Stealing Trade Secrets

On December 5, David Newman, a former futures trader at a Chicago trading firm, was indicted for three counts of theft of trade secrets.  Newman is accused of stealing trade secrets from the trading firm, including computer code for electronic trading and strategies and the firm’s options modeling system.  The indictment alleges that he signed a document in 2011 acknowledging that he was not authorized to copy or possess the firm’s trade secrets.  It is
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Court Approves $5.15 Billion U.S. Environmental and Tort Settlement with Anadarko Petroleum Corporation

On November 13, Preet Bharara, together with DOJ and EPA officials, announced that District Judge Katherine B. Forrest of the Southern District of New York had approved the settlement of fraudulent conveyance claims brought by the United States and co-plaintiff Anadarko Litigation Trust (the “Trust”) against the Kerr-McGee Corporation and certain of its affiliates, including Anadarko Petroleum Corporation, in the bankruptcy of Tronox Inc. and its subsidiaries.  Pursuant to the settlement agreement, the defendants must
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Supreme Court Declines Review of Third Circuit Decision Limiting Application of Attorney-Client Privilege in FCPA Case

On November 10, the Supreme Court declined to review a Third Circuit decision applying the crime-fraud exception to attorney-client privilege in an FCPA case.  The Third Circuit decision, which will now remain intact, provided that the crime-fraud exception applied to a consultation where an attorney advised his client that proposed conduct could violate the FCPA.  Accordingly, the Third Circuit affirmed the district court’s decision to enforce a subpoena requiring an attorney to testify about his
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Attorney General Eric H. Holder Announces Settlement with Hyundai and Kia

On November 3, Attorney General Eric H. Holder announced a “historic settlement” under the Clean Air Act with Hyundai and Kia.  Hyundai and Kia were alleged to have sold roughly 1.2 million cars based on inaccurate representations of the vehicles’ performance and emissions.  Under the settlement, Hyundai and Kai agreed to pay a civil penalty of $100 million, forfeit the greenhouse gas credits that the companies wrongly claimed, and implement new procedures to prevent future
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Sentencing Commission Makes Revising White-Collar Guidelines a Priority

On August 14, the U.S. Sentencing Commission approved its list of priorities for the coming year.  Among the priorities identified was a consideration of changes to the sentencing guidelines for some white-collar crimes, especially “fraud on the market” cases, in which small losses are typically sustained by a large number of victims, making for large aggregate loss amounts. USSC Press Release.
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Citigroup Agrees to $7 Billion Mortgage Settlement

On July 14, DOJ, along with other federal and state officials, announced a $7 billion settlement with Citigroup Inc. to resolve civil claims related to the packaging, securitization, marketing, sale and issuance of residential mortgage-backed securities (RMBS).  The resolution includes a $4 billion civil penalty under the Financial Institutions Reform, Recovery and Enforcement Act, but does not shield Citigroup or its employees from possible criminal charges.  The resolution also requires Citigroup to provide relief to
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SunTrust Mortgage Agrees to $320 Million Settlement

On July 3, DOJ announced that SunTrust Mortgage Inc. has agreed to pay $320 million to resolve a criminal investigation relating to its administration of the Home Affordable Modification Program (HAMP), a U.S. mortgage-modification program.  According to the government, SunTrust misled mortgage servicing customers who sought mortgage relief through HAMP, causing serious financial harm to thousands of homeowners.  SunTrust’s $320 million settlement payment is divided among restitution to borrowers, forfeiture to law enforcement agencies, and
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