- In recent remarks, top DOJ officials stated that DOJ will “surge resources” and “redouble efforts” for corporate enforcement.
- Areas of particular concern include Foreign Corrupt Practices Act, government contracting fraud, financial fraud, tax issues, and energy pricing benchmark manipulation.
- Strong compliance programs must be top-down, with C-suite executives enforcing the importance of compliance. Should problems occur, the first call always should be to legal counsel.
In this Opportunity Economy conversation, two Department of Justice alumni—Womble Bond Dickinson attorneys Luke Cass and Joe Whitley—discuss enforcement trends in corporate crime with Womble Bond Dickinson attorney Mark Henriques. The discussion took place on an episode of the “In-house Roundhouse” podcast, and the article below is based on that conversation. Cass spent 11 years at DOJ, serving as an Assistant U.S. Attorney and Senior Trial Attorney with the Criminal Division’s Public Integrity Section. In those roles, he handled financial fraud and public corruption investigations and prosecutions of public officials. Whitley served as Acting Associate Attorney General, the third-ranking position at Main Justice during the Ronald Reagan and George H.W. Bush administrations. He was also appointed by Presidents Reagan and Bush, respectively, to serve as the U.S. Attorney in the Middle (Macon) and Northern (Atlanta) Districts of Georgia and appointed to be the first General Counsel for the United States Department of Homeland Security by President George W. Bush.
Nothing keeps corporate executives up at night quite like the threat of white-collar criminal charges. While other forms of wrongdoing or mistakes can cost the company money, white-collar charges can result in actual jail time for company leaders. DOJ has renewed its focus on prosecuting individuals for corporate crimes.
Federal white-collar enforcement priorities typically change when there is a new administration in Washington, and that certainly is the case in 2021, with the Biden Administration implementing its own set of compliance priorities and enforcement emphases.
New Sheriff in Town: What to Expect from the Biden Administration DOJ
“The last administration was focused on immigration and violent crimes, primarily. Under the Biden Administration, you’ve seen a renewed focus on white-collar enforcement. There’s a lot of tough talk and they’re getting ready for task forces and investigations in a number of areas,” Cass said.
The first such task force addresses Foreign Corrupt Practices Act (FCPA) violations, with an eye on Latin America. Of the DOJ’s four FCPA actions in 2020, three involved parties based in Latin America.
“Apart from FCPA, I think you’ll see financial fraud continue to be a priority,” Cass said. "When you flood the system with capital, like with the PPP and CARES Act funds, fraud will follow. I think you’ll see those prosecutions for years to come.” He said the amount of money on the table in the proposed infrastructure bill could also lead to more opportunities for bad actors to commit fraud—which, in turn, could lead to an increase in investigations related to government contracts.
"Under the Biden Administration, you’ve seen a renewed focus on white-collar enforcement. There’s a lot of tough talk and they’re getting ready for task forces and investigations in a number of areas."
LUKE CASS, PARTNER, WOMBLE BOND DICKINSON (US) LLP