BakerHostetler Cross-Border Government Investigations and Regulatory Enforcement Review Highlights Extensive Reach of Authorities Across Multiple Jurisdictions

Report examines developments and trends in cross-border legislation, regulation, and enforcement in securities fraud, accounting fraud, anti-money laundering, racketeering, and trade sanctions

Press Releases / March 10, 2016

NEW YORK, March 10, 2016 — The age of globalization has caused financial markets to become increasingly intertwined, resulting in a corresponding rise in cross-border regulations and enforcement against all sorts of alleged misconduct – from spoofing, insider trading, money laundering, bribery, racketeering, accounting fraud and other misdeeds. Law firm BakerHostetler has put together an exhaustive look at enforcement actions by the major regulatory regimes over the past year and examines the largest cross-border investigations and government enforcement actions worldwide.

“There are many different agencies in different jurisdictions scrutinizing behavior that can move and affect markets globally. There is no such thing as ‘what happens in Hong Kong stays in Hong Kong,’ anymore. Companies with a global reach now face a web of overlapping domestic and foreign regulatory scrutiny. We felt it was important to put this overview together so companies with cross-border operations can better understand the regulatory and policy agendas of the U.S. and foreign authorities and develop adequate procedures to ensure compliance with their various laws,” said Jonathan New, a former Assistant United States Attorney and lead author of the report.

The 31-page 2015 Year-End Cross-Border Government Investigations and Regulatory Enforcement Review, which mainly looks at U.S. agency enforcement actions but also covers foreign agency work as it relates to cross-border cases, is broken down into six sections: Securities Fraud; Cross-Border Cooperation in Enforcement of Anti-Money Laundering, Racketeering and Trade Sanction Laws; Accounting Fraud; Whistleblower Programs; Criminal/Civil Procedure; and the U.S. Government’s Authority to Seize Data Stored Overseas. Each section delves deep into its topic with current matters discussed, such as proposed FINRA rules regarding trading algorithms, the first-ever criminal conviction in the U.S. for spoofing, an update on actions by the Department of Justice and the UK’s Financial Conduct Authority against JPMorgan Chase concerning credit derivatives losses, the LIBOR manipulation allegations and convictions, the global investigation into money laundering by Liberty Reserve, the FIFA racketeering case, and the Olympus accounting scandal, among a host of others.

A section on the U.S. government’s authority to seize data stored overseas provides an overview of several important cases and proposed laws that could impact the ability of U.S. authorities to seize data that is located in foreign countries and stored digitally. The report breaks down the government’s proposed amendments to Rule 41 of the Federal Rules of Criminal Procedure, and to the Electronic Communications Privacy Act (ECPA). One such proposal, the Law Enforcement Access to Data Stored Abroad (LEADS) Act, is designed to clarify the scope of the U.S. government’s authority to search and seize electronically stored information outside the United States and to strengthen and enhance the current process used to seize data evidence located overseas.

A section on corporate liability describes actions by the U.S. and the UK in prosecuting corporate executives in addition to their companies. It includes a breakdown of the six directives that comprise the Yates Memo – the memorandum issued in September 2015 by U.S. Deputy Attorney General Sally Quillian Yates announcing the Department of Justice’s new guidelines regarding its intensifying focus on individual wrongdoers in the context of corporate misconduct.

The report also covers the foreign expansion of U.S. whistleblower programs in 2015, as well as areas of common focus by regulators in different jurisdictions and the parallel development of tools used to combat alleged violations.

The 2015 Year-End Cross-Border Government Investigations and Regulatory Enforcement Review is produced by lawyers with BakerHostetler’s White Collar Defense and Corporate Investigations team, which includes leaders in the field who have defended and counseled clients in high-stakes litigation involving FCPA investigations, securities fraud, public corruption, insider trading, and hedge fund fraud, as well as other alleged misconduct. BakerHostetler’s White Collar practice is composed of lawyers who have served as legal advisors to Fortune 50 companies and major hedge funds, as well as former advocates for the government as a United States Attorney, Assistant United States Attorneys, Assistant District Attorneys, and SEC enforcement attorneys.

###

About BakerHostetler
Celebrating the 100th anniversary of its founding this year, BakerHostetler is a leading national law firm that helps clients around the world to address their most complex and critical business and regulatory issues. With five core national practice groups – Business, Employment, Intellectual Property, Litigation, and Tax – the firm has more than 940 lawyers located in 14 offices coast to coast. Recognized for its role as court-appointed counsel to the Securities Investor Protection Act (SIPA) Trustee in the recovery of billions of dollars in principal lost in the Ponzi scheme perpetrated by Bernard L. Madoff, BakerHostetler is widely regarded as having one of the country’s top 10 tax practices, a nationally recognized litigation practice, an award-winning data privacy practice, and an industry-leading business practice. For more information, visit bakerlaw.com.

Contact:

Tracy Hager, 303.764.4090 (thager@bakerlaw.com), or Stephanie Moore, 216.861.7106 (semoore@bakerlaw.com)