April 8, 2021
Publication: Financier Worldwide
In a Q&A for Financier Worldwide, Kobre & Kim’s Scott Hulsey and William McGovern examined the latest trends in U.S. corporate fraud and corruption enforcement.
Hulesy and McGovern expect new leadership in the U.S. Department of Justice (DOJ), Security and Exchange Commission (CFTC), the Department of Treasury and others to refocus enforcement priorities and take more aggressive stances against corporate fraud and corruption. This is aided by the usual tools, such as the Foreign Corrupt Practices Act (FCPA), as well as the newly passed National Defense Authorization Act, which strengthened whistleblower programs and regulations, particularly those over beneficial ownership.
COVID-19 has also been the other main driving force in shifting enforcement trends. During the pandemic, there has been an increase in reports of fraud. While the pandemic has also led to an increase in fined companies claiming “inability to pay” to reduce their fines, it has also made it more difficult for companies to investigate fraud internally, which Hulsey and McGovern advise could be overcome by technology.