In brief

Please join us for a new weekly video series, hosted by Baker McKenzie’s North America Government Enforcement partners Tom Firestone and Jerome Tomas.

This weekly briefing is available on demand and will cover hot topics and current enforcement actions related to white collar crime and criminal investigations in the US and abroad to arm you with the information you need to start your business week.

As one of the largest global law firms, we will call upon our exceptionally deep and broad bench of white collar experts throughout the world and particularly in the commercial hubs of Europe, Asia, Africa and Latin America to join our weekly discussion series.

These briefings will cover:

  • High-profile DOJ case updates and implications
  • SEC enforcement developments 
  • CFTC enforcement developments
  • Other white collar defense industry developments 

3 August 2021

This week’s discussion will cover the following: 

  • New DOJ opinion on Trump tax returns
  • New DOJ policy on subpoenas to new organizations
  • New DOJ memorandum on White House communications
  • SEC Chair Gensler’s Public Statement on Disclosures Required by Chinese Companies Listed In US

Video link 

Podcast link

26 July 2021

This week’s discussion will cover the following:

  • The Importance of Having Up-To-Date Automated Accounting Procedures, Effective Manual Accounting Procedures, and Trained Accounting Staff:  The SEC’s Latest Accounting Case Against Tandy Leather Factory Inc. and its former chief executive officer Shannon Greene.
  • Indictment of Trump Advisor Thomas Barrack
  • Biden Executive Order on Promoting Competition

Video link  

Podcast link

13 July 2021

This week’s discussion will cover the following:

  • Manhattan DA’s Indictment of the Trump Organization and Allen Weisselberg
  • New SEC Enforcement Director – New Jersey Attorney General Gurbir Grewal
  • SEC and federal criminal charges filed arising out of alleged fraudulent scheme to sell “insider trading tips” on the Dark Web- SEC v. Apostolos Trovias

Video link

Podcast link

29 June 2021

This week’s discussion will cover the following: 

  • SEC Cybersecurity Enforcement Sweep:  The SEC Clarifies, Sort Of
  • Latest, and Interesting, Comments By SEC Commissioner on ESG
  • Combating Global Corruption Act of 2021
  • Global Magnitsky Reauthorization Act
  • New Belarus Sanctions 

Video Link

Podcast Link

22 June 2021

This week’s discussion will cover the following: 

  • New Charges in 1MDB Case
  • FARA Reform Proposals
  • Possible New Russia Sanctions  
  • Cyber SEC Enforcement: Latest SEC Disclosure Controls and Procedures Enforcement Case
  • A New SEC Cyber Enforcement Sweep

Video Link

Podcast Link

9 June 2021

This week’s discussion will cover the following: 

  • Potential SEC ESG Disclosure Rulemaking and Materiality:  Commissioners Allison Herren Lee and Elad Roisman Continue to Volley
  • White House strategy statement on corruption and national security
  • Belarus sanctions
  • Bulgaria sanctions
  • Executive Order on Western Balkans

Video Link 

Podcast Link

25 May 2021

This week’s discussion will cover the following: 

  • Insight on Gary Gensler’s SEC Enforcement Agenda: SEC Chair’s Remarks at 2021 FINRA Annual Conference
  • Discussion of Treasury’s Plan to Increase IRS Enforcement and Narrow the Tax Gap
  • Update on Nord Stream 2 Sanctions 

Video link 

18 May 2021

This week’s discussion will cover the following:

  • Russian Response to US Sanctions and Designation of US as an “Unfriendly” Country  
  • Trial of Mayor of Fall River, Massachusetts for Extorting Marijuana Businesses  
  • The Challenges of Fitting Modern Practices into Old Laws: SEC Commissioner Hester Peirce’s Statement Regarding an Index Fund SEC Settlement  
  • SEC’s Continued Slow Embrace of Crypto Assets: Division of Investment Management’s Statement on ETF Holdings of Crypto Assets and Potential Enforcement Implications  to Assets and Potential Enforcement Implications  

Video Link

10 May 2021

This week’s discussion will cover the following:

  • Crypto developments:  SEC Chair Gensler’s Testimony, Dogecoin and Saturday Night Live
  • The “Swiss George Floyd Case”  (for more information about this case, please see this documentary featuring Simon Ntah here

Video Link

3 May 2021

This week’s discussion will cover the following:

  • First Voluntary Self-Disclosure of Sanctions and Export Violations Leads to Settlement between Software Company and DOJ
  • The Sudden Resignation of SEC Enforcement Director Alex Oh:  What is Next For SEC Enforcement?

Video Link

26 April 2021

This week’s discussion will cover the following:

  • New SEC Enforcement Director Alex Oh: What It May Mean For SEC Enforcement
  • DOJ Pattern and Practice Investigation of Minneapolis Police Department

Video Link

19 April 2021

This week’s discussion will cover the following:

  • First guilty plea in Capitol attack cases: What it means for future prosecutions
  • New Russia sanctions: What they do and don’t do, and what could be next
  • Comments by Acting Director of the SEC’s Division of Corporation Finance, “SPACs, IPOs and Liability Risk under the Securities Laws”: What it means for SEC enforcement

Video Link

12 April 2021

This week’s discussion will cover the following:

  • Criminal Antitrust Prosecutions of No Poaching and Wage Fixing Agreements: Perspective of a Leading Antitrust Lawyer.
  • Enforcement perspectives arising out of the SEC’s April 9, 2021 “Risk Alert” relating to ESG products and services offered by investment advisers, registered investment companies and private funds.
  • DOJ Priorities under the Biden Administration: What the Budget Tells Us.

Video Link

30 March 2021

This week’s discussion will cover the following:

  • SEC Enforcement Sweep Looks Into SPAC IPOs
  • New Legal Issues in the Capitol Riot Cases

Video Link

15 March 2021

This week’s discussion will cover the following:

  • DOJ/SEC FCPA priorities
  • Oath Keepers conspiracy case
  • New Russian law to protect officials against corruption charges
  • Does SEC Commissioner Crenshaw’s speech about increased corporate penalties foreshadow a possible retraction of the SEC’s 2006 Statement Concerning Financial Penalties and what we can expect from corporate securities enforcement over the next 4 years?

Video Link

8 March 2021

This week’s discussion will cover the following:

  • This week, Jerome is joined by his partners Amy Greer and Jen Klass and they will dig deep into the enforcement issues presented by the SEC’s “Enforcement Task Force Focused on Climate and ESG Issues” 

Video Link

1 March 2021

This week’s discussion will cover the following:

  • The SEC’s Plan to Dig Into Public Company Climate Change Disclosures: A White Collar Enforcement Perspective
  • Key Takeaways from Merrick Garland Confirmation Hearing
  • Update on Capitol Riot Cases
  • Secretary Blinken Statement on Anticorruption Champions 

Video Link

22 February 2021

This week’s discussion will cover the following:

  • Potential prosecution of former President Trump for incitement of the Capitol attack
  • The SEC’s latest message following the “The Market Events”: trading suspension in In the Matter of SpectraScience, Inc. 
  • New Transparency International Corruption Report
  • The SEC’s ICO enforcement initiative lives on: SEC v. Coinseed, Inc., et al. (S.D.N.Y. 17 February 2021)

Video Link

15 February 2021

This week’s discussion will cover the following:

  • Update on Capitol riot cases
  • The legal definition  of “incitement of insurrection” 
  • Discussion of the reported DOJ and SEC investigations into the retail traders in last month’s market events
  • A reminder on the scope of the US insider trading laws, courtesy of SEC v. Mark Ahn (D. Mass) (also a parallel criminal case was filed)

Video Link

8 February 2021

This week’s discussion will cover the following:

  • An update on the Capitol Riots
  • Consideration of new sanctions on Russia
  • An update on stock market events, including the FINRA notice on broker-dealer “game-style” trading apps 

Video Link

1 February 2021

This week’s discussion will cover the following:

  • Analysis of the Reddit/WallStreetBets-driven stock surges, with a special appearance by Jerome’s 15 year old son, Sam, who has been following the events on Reddit and Discord  
  • Discussion of the Hoskins appeal and the future of the FCPA’s “Agency” theory
  • Update on the Capitol raid prosecutions

Video Link

18 January 2021

This week’s discussion will cover the following:

  • New SEC Enforcement Statute of Limitations and Disgorgement Provisions Contained in the NDAA
  • New AML Whistleblower Bounty Provision in the NDAA
  • Criminal charges against Capitol rioters
  • Julian Assange extradition case

Video Link

4 January 2021

This week’s discussion will cover the following:

  • What criminal statutes might apply to the attack on the Capitol?
    • 18 USC 2383 – Rebellion or Insurrection
    • 18 USC 2384 – Seditious Conspiracy
    • 18 USC 1752 – Restricted Building or Grounds
  • What, if any, criminal statutes might apply to President Trump’s call last week with Georgia Secretary of State?
  • The 25th Amendment — A brief history of the amendment, what the amendment provides for and how it might apply in light of these events.

Video Link

14 December 2020

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07 December 2020

Video Link

23 November 2020

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16 November 2020

Video Link

9 November 2020

Video Link

26 October 2020

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19 October 2020

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5 October 2020

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29 September 2020

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8 September 2020

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24 August 2020

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17 August 2020

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10 August 2020

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3 August 2020

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27 July 2020

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20 July 2020

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13 July 2020

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6 July 2020

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29 June 2020

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22 June 2020

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17 June 2020

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9 June 2020

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26 May 2020 

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The post United States: This Week in Government Enforcement (Video Chat) appeared first on Global Compliance News.

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Welcome to The Employer Rapport, Baker McKenzie’s Labor and Employment video chat series for US multinational employers. In each on-demand episode, our lawyers provide insights and quick, practical tips on today’s most pressing issues and legal developments impacting employers both at the domestic and global levels. These videos complement our written legal updates shared on The Employer Report blog on trending topics including COVID-19 reopening developments.

Watch the video chats and be sure to let us know if there are additional topics you’d like us to address.

If you’re looking for guidance related to the pandemic, please check out the below Reopening Playbook video chat series. It covers practical topics like masks in the workplace, expense reimbursement requirements, employee testing and screening and much more.

Reopening Playbook Video Chat Series

Quarantine Requirements for When Your Employees Travel to Hotspots (30 July 2020)
Speakers: Elizabeth EbersolePaul EvansRobin Samuel

ICMYI Part 2: Employee Testing & Screening Update — What Can and Can’t Employers Do (23 July 2020)
Contacts: Susan EandiPaul Evans, Emily Harbison

Don’t Get Schooled by Employee Childcare Issues: What You Need to Know about Leave Laws as Schools Struggle with Reopening (16 July 2020)
Speakers: Emily Harbison, Michael Brewer and Robin Samuel

ICYMI: Employee Testing & Screening Update — What Can and Can’t Employers Do (9 July 2020)
Speakers: Susan Eandi, Emily Harbison, Robin Samuel

Employment Lessons from the Early State Reopeners (23 June 2020)
Speakers: Emily Harbison, Paul EvansWilliam Dugan

Employment Litigation Predictions in a COVID-19 World: An Insider’s View from the Plaintiff’s Bar (12 June 2020)
Speakers: Michael BrewerBillie Wenter

Employee Expense Reimbursement: Requirements and Trends in a WFH Environment (12 June 2020)
Speakers: Michael BrewerSusan Eandi, Emily Harbison

Employers: Protect Your Company IP While Employees Work Remotely (12 June 2020)
Speakers: Bradford NewmanJoseph DengBillie WenterRobin Samuel

How to Think About Moving to Permanently Remote Work (5 June 2020)
Speakers: Susan EandiChristopher GuldbergBetsy Morgan, Grant Uhler

An Employer Primer on Workshare Programs (5 June 2020)
Speakers: Paul EvansRobin SamuelBillie Wenter

EEOC Guidance: To Keep Employees Home or Not (5 June 2020)
Speakers: Michael Brewer, Emily Harbison, Michael Leggieri 

Trend Watch: The First Wave of COVID-Related Employment Litigation: What’s on the Minds of Employers and Litigators during COVID-19? (29 May 2020)
Speakers: Michael Brewer, Paul EvansJeffrey SturgeonBillie Wenter

Planning Internships in the Summer of COVID-19 (29 May 2020)
Speakers: Anne Batter, Emily Harbison,  Benjamin Ho

Masks Unmasked — What Employers Need to Know About Face Coverings (15 May 2020)
Speakers: Michael BrewerJoseph DengSusan Eandi

Best Practices for Navigating the Initial Lifting of Shelter-in-Place Orders (15 May 2020)
Speakers: Michael Leggieri, Teresa MichaudBillie Wenter

Unique COVID-Related Wage & Hour Issues Employers Need to Know (15 May 2020)
Speakers: Paul Evans, Emily Harbison, Jeffrey Sturgeon

Best Practices for Employers with the Rush to Remote Working (15 May 2020)
Speakers: William Dugan, Emily Harbison, Brian Hengesbaugh

Practical Tips for Conducting RIFS During these Challenging Times (15 May 2020)
Speakers: Susan EandiBenjamin HoChris Guldberg, Arthur Rooney

US Immigration Considerations During the Pandemic (7 May 2020)
Speakers: Melissa AllchinWilliam DuganBetsy Morgan

Data Privacy Issues Related to COVID-19 Health Questionnaires and Testing (7 May 2020)
Speakers: Amy de La Lama, Joseph DengRobin Samuel

Prediction: COVID-Related Employment Litigation Trends (7 May 2020)
Speakers: Michael BrewerMark GoodmanTeresa Michaud

Importance of Paying Attention to Pay Equity During COVID-19 (7 May 2020)
Speakers: Susan EandiPaul Evans, Emily Harbison

Key Benefits Questions Around the CARES Act (7 May 2020)
Speakers: Chris GuldbergBenjamin Ho

The post The Employer Rapport: The COVID-19 Employment Litigation Landscape – Is It All Uphill From Here? appeared first on Global Compliance News.

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Buyers are using “acquihires,” a discreet M&A strategy that oftentimes flies under the news radar, to bolster AI benches.

There is a gold rush in tech M&A and the gold is talent to develop and integrate artificial intelligence (AI) technology. Faced with a shortage in skilled employees, buyers are using “acquihires,” a discreet M&A strategy that oftentimes flies under the news radar, to bolster AI benches.

The surge in AI acquihires is likely to persist for the foreseeable future. Leading technology companies are dedicating a significant share of their R&D budgets to AI research. PitchBook reported that in 2020 Facebook, Apple, Microsoft, Google and Amazon spent a combined USD 133.5 billion on R&D with a significant portion budgeted for AI. Globally, there were 286 AI-related acquisitions in 2019. In 2020, the number of AI transactions increased to 449, an annual growth rate of over 50%, and 2021 appears to be keeping pace.

An acquihire is a transaction where a buyer is primarily motivated to acquire key talent rather than a business itself or its products. The transaction can be structured as an asset sale, stock purchase, merger or even simply a release of relevant employees from non-compete arrangements coupled with a defensive license to the intellectual property (IP) developed at the employees’ former firm.

As companies increasingly rely on AI, acquihires offer an attractive alternative to organic internal development of talent. For a buyer, such a transaction is a quick mechanism to acquire skilled teams with experience working together. For sellers and the target employees, an acquihire can provide value where a business has otherwise run short on cash and a soft landing for a team that might otherwise be wound down.

Because no one location represents a global center of gravity for AI development, and remote working arrangements embraced by necessity during the pandemic are likely to remain a norm for many companies, buyers should be prepared for their acquihire to involve disparate geographies and even cross-border considerations. To nimbly navigate these complications, we recommend focusing on four key legal issues during initial acquihire planning stages.

1. Factor employee transfer mechanics into transaction execution strategy.

The mechanics for employee transfers as well as any restrictions on an employee’s freedom to operate post-transfer are paramount. Employment-related laws impacting these matters differ depending on the jurisdictions in which employees provide their services.

In an asset deal, transferring employees can be complicated. In certain countries, employees must be terminated by the target and hired by the buyer, a process which may require releases from existing and entry into new employment agreements. In other countries, employees may transfer automatically under their existing terms as long as they belong to the business transferred.
A buyer should also ensure that its future employees are released from lingering non-competes.

2. Construct mechanisms to retain talent and protect from competition post-transfer.

Retaining acquihire talent and protecting from future competition can be challenging. A 2020 report from Ernst & Young found that 47% of key acquihire employees leave buyers within one year, and 75% leave within three years.

Buyers can combat attrition by using payments contingent on retention or performance (e.g., purchase price holdbacks, performance based earn outs, employee retention and incentive pools and equity claw backs). Buyers should work with counsel to determine the best combination of incentives for the deal at hand – taking into account tax, accounting and operational implications.

Tax treatment of retention incentives can vary greatly across jurisdictions. Many acquihires are structured with little upfront cash consideration. If tax liabilities on contingent future consideration are triggered at closing, a buyer may find that it does not have a viable deal structure if consideration is insufficient to pay such obligations. Contingent consideration is accordingly frequently structured to defer taxation until receipt and to accrue more favorable capital gain rates rather than compensation income.

In addition, if the contingent consideration results in the recognition of compensation income by the employee with the employing payor being entitled to a tax deduction for such compensation, it may be deemed compensation expense rather than acquisition consideration, creating undesirable operating accounting expense and a drag on buyer earnings.

Because characterizing retention payments as consideration in the transaction may raise tax, accounting seller liquidation preferences issues, buyers may be forced to rely on employment-based non-competes. The enforceability of post-employment non-competes varies widely across jurisdictions. Non-competes, particularly those justified on the basis of employment rather than receipt of deal consideration, are not enforceable in a growing number of states and non-US jurisdictions, and are in further jeopardy under a recent Biden administration executive order.

3. Protect any intellectual property developed following the acquisition.

Transferring a team alone provides no entitlements to IP assets that such team created or had access. If the team acquired will work on same or similar technology as what they worked on pre-acquisition, then the buyer should ensure that there will be no basis for claims against the IP that the team will develop. In acquihires structured as an asset sale or employee release, consider whether to transfer or license IP.

The buyer will also want to ensure that IP created by the new acquihires post-transfer belongs to the buyer through proprietary information and invention assignment agreements, as well as comprehensive policies and procedures for protection of IP rights.

4. Ensure that the sell side deal process minimizes disputes among sellers.

Because acquihires often involve limited cash consideration, instead skewing economics towards retention awards in the form of equity for employees, sellers may receive little consideration. This may be the correct result as the value of the business may be its employees. However, it can raise questions about the motives of founders and other executives negotiating employment packages in their own interests rather than seeking to maximize returns for equity holders.

No buyer wants its talent embroiled in a lawsuit or the validity of its transaction challenged. Savvy buyers (1) take account of required seller approvals and possible claims when proposing a transaction structure and (2) consider the availability of mechanisms (e.g., recusal of interested directors from board meetings) to limit exposure from post-closing claims.

Reprinted with permission from the July 2021 edition of the Corporate Counsel © 2021 ALM Media Properties, LLC. All rights reserved. Further duplication without permission is prohibited, contact 877-257-3382 or reprints@alm.com.

The post Legal Priorities When Prospecting Your Next AI Acquihire appeared first on Global Compliance News.

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A series of briefings that take a bite-size look at international trends in different jurisdictions, drawing on Baker McKenzie’s expert financial services practitioners with local market knowledge.

This edition takes a bite-size look at the different rates of progress of environmental, social and governance (ESG) regulation and voluntary standards across the European Union, Hong Kong SAR, Japan, Singapore, the United Kingdom and the United States. The 2015 Paris Agreement on Climate Change specifically identified finance as having a key role in mitigating the effects of global warming, as large-scale investments are needed to significantly cut emissions. Nor, of course, are financial institutions themselves immune from the effects of climate change, as their prudential soundness and ability to meet long-term commitments will be jeopardized if the value of their capital is impacted. The COVID-19 pandemic has provided a significant impetus to the adoption of ESG regulation and voluntary standards, although the industry’s progress is being slowed by a lack of common and consistent international standards over disclosure and classification. What was, initially, (largely) voluntary is becoming essential to win business and is, increasingly (especially in Europe), subject to legal and regulatory imperative, as exemplified by the number of jurisdictions proposing to make mandatory the Task Force on Climate-related Financial Disclosures (TCFD).

The post Bite-size Briefings: Environmental, Social and Governance (ESG) regulation appeared first on Global Compliance News.

Source

https://video.bakermckenzie.com/embed?id=85c1a8fc-1df3-496d-983d-926330f28f97

In this Quick Chat video, Baker McKenzie’s Labor and Employment, Trade Secrets and Antitrust lawyers explore the impact on employers of the severe limitations on post-employment noncompete restrictions outlined in President Biden’s Executive Order on Promoting Competition in the American Economy and the supporting Fact Sheet.

While not at all unexpected, President Biden’s Executive Order is catapulting the use of post-employment noncompetes to the forefront of conversations and business planning for US employers. Baker McKenzie attorneys address what employers should do now to prepare for anticipated action by the Federal Trade Commission and Department of Justice in line with the Executive Order, including taking inventory of their noncompete agreements and considering the impact of any wide-spread rulemaking to how the organization manages employee-raiding/poaching, maintenance of trade secrets and confidential information, and M&A.

The post Providing Perspective on President Biden’s Executive Order on Promoting Competition in the American Economy appeared first on Global Compliance News.

Source

In brief

Please join us for a new weekly video series, hosted by Baker McKenzie’s North America Government Enforcement partners Tom Firestone and Jerome Tomas.

This weekly briefing is available on demand and will cover hot topics and current enforcement actions related to white collar crime and criminal investigations in the US and abroad to arm you with the information you need to start your business week.

As one of the largest global law firms, we will call upon our exceptionally deep and broad bench of white collar experts throughout the world and particularly in the commercial hubs of Europe, Asia, Africa and Latin America to join our weekly discussion series.

These briefings will cover:

  • High-profile DOJ case updates and implications
  • SEC enforcement developments 
  • CFTC enforcement developments
  • Other white collar defense industry developments 

3 August 2021

This week’s discussion will cover the following: 

  • New DOJ opinion on Trump tax returns
  • New DOJ policy on subpoenas to new organizations
  • New DOJ memorandum on White House communications
  • SEC Chair Gensler’s Public Statement on Disclosures Required by Chinese Companies Listed In US

Video link 

Podcast link

26 July 2021

This week’s discussion will cover the following:

  • The Importance of Having Up-To-Date Automated Accounting Procedures, Effective Manual Accounting Procedures, and Trained Accounting Staff:  The SEC’s Latest Accounting Case Against Tandy Leather Factory Inc. and its former chief executive officer Shannon Greene.
  • Indictment of Trump Advisor Thomas Barrack
  • Biden Executive Order on Promoting Competition

Video link  

Podcast link

13 July 2021

This week’s discussion will cover the following:

  • Manhattan DA’s Indictment of the Trump Organization and Allen Weisselberg
  • New SEC Enforcement Director – New Jersey Attorney General Gurbir Grewal
  • SEC and federal criminal charges filed arising out of alleged fraudulent scheme to sell “insider trading tips” on the Dark Web- SEC v. Apostolos Trovias

Video link

Podcast link

29 June 2021

This week’s discussion will cover the following: 

  • SEC Cybersecurity Enforcement Sweep:  The SEC Clarifies, Sort Of
  • Latest, and Interesting, Comments By SEC Commissioner on ESG
  • Combating Global Corruption Act of 2021
  • Global Magnitsky Reauthorization Act
  • New Belarus Sanctions 

Video Link

Podcast Link

22 June 2021

This week’s discussion will cover the following: 

  • New Charges in 1MDB Case
  • FARA Reform Proposals
  • Possible New Russia Sanctions  
  • Cyber SEC Enforcement: Latest SEC Disclosure Controls and Procedures Enforcement Case
  • A New SEC Cyber Enforcement Sweep

Video Link

Podcast Link

9 June 2021

This week’s discussion will cover the following: 

  • Potential SEC ESG Disclosure Rulemaking and Materiality:  Commissioners Allison Herren Lee and Elad Roisman Continue to Volley
  • White House strategy statement on corruption and national security
  • Belarus sanctions
  • Bulgaria sanctions
  • Executive Order on Western Balkans

Video Link 

Podcast Link

25 May 2021

This week’s discussion will cover the following: 

  • Insight on Gary Gensler’s SEC Enforcement Agenda: SEC Chair’s Remarks at 2021 FINRA Annual Conference
  • Discussion of Treasury’s Plan to Increase IRS Enforcement and Narrow the Tax Gap
  • Update on Nord Stream 2 Sanctions 

Video link 

18 May 2021

This week’s discussion will cover the following:

  • Russian Response to US Sanctions and Designation of US as an “Unfriendly” Country  
  • Trial of Mayor of Fall River, Massachusetts for Extorting Marijuana Businesses  
  • The Challenges of Fitting Modern Practices into Old Laws: SEC Commissioner Hester Peirce’s Statement Regarding an Index Fund SEC Settlement  
  • SEC’s Continued Slow Embrace of Crypto Assets: Division of Investment Management’s Statement on ETF Holdings of Crypto Assets and Potential Enforcement Implications  to Assets and Potential Enforcement Implications  

Video Link

10 May 2021

This week’s discussion will cover the following:

  • Crypto developments:  SEC Chair Gensler’s Testimony, Dogecoin and Saturday Night Live
  • The “Swiss George Floyd Case”  (for more information about this case, please see this documentary featuring Simon Ntah here

Video Link

3 May 2021

This week’s discussion will cover the following:

  • First Voluntary Self-Disclosure of Sanctions and Export Violations Leads to Settlement between Software Company and DOJ
  • The Sudden Resignation of SEC Enforcement Director Alex Oh:  What is Next For SEC Enforcement?

Video Link

26 April 2021

This week’s discussion will cover the following:

  • New SEC Enforcement Director Alex Oh: What It May Mean For SEC Enforcement
  • DOJ Pattern and Practice Investigation of Minneapolis Police Department

Video Link

19 April 2021

This week’s discussion will cover the following:

  • First guilty plea in Capitol attack cases: What it means for future prosecutions
  • New Russia sanctions: What they do and don’t do, and what could be next
  • Comments by Acting Director of the SEC’s Division of Corporation Finance, “SPACs, IPOs and Liability Risk under the Securities Laws”: What it means for SEC enforcement

Video Link

12 April 2021

This week’s discussion will cover the following:

  • Criminal Antitrust Prosecutions of No Poaching and Wage Fixing Agreements: Perspective of a Leading Antitrust Lawyer.
  • Enforcement perspectives arising out of the SEC’s April 9, 2021 “Risk Alert” relating to ESG products and services offered by investment advisers, registered investment companies and private funds.
  • DOJ Priorities under the Biden Administration: What the Budget Tells Us.

Video Link

30 March 2021

This week’s discussion will cover the following:

  • SEC Enforcement Sweep Looks Into SPAC IPOs
  • New Legal Issues in the Capitol Riot Cases

Video Link

15 March 2021

This week’s discussion will cover the following:

  • DOJ/SEC FCPA priorities
  • Oath Keepers conspiracy case
  • New Russian law to protect officials against corruption charges
  • Does SEC Commissioner Crenshaw’s speech about increased corporate penalties foreshadow a possible retraction of the SEC’s 2006 Statement Concerning Financial Penalties and what we can expect from corporate securities enforcement over the next 4 years?

Video Link

8 March 2021

This week’s discussion will cover the following:

  • This week, Jerome is joined by his partners Amy Greer and Jen Klass and they will dig deep into the enforcement issues presented by the SEC’s “Enforcement Task Force Focused on Climate and ESG Issues” 

Video Link

1 March 2021

This week’s discussion will cover the following:

  • The SEC’s Plan to Dig Into Public Company Climate Change Disclosures: A White Collar Enforcement Perspective
  • Key Takeaways from Merrick Garland Confirmation Hearing
  • Update on Capitol Riot Cases
  • Secretary Blinken Statement on Anticorruption Champions 

Video Link

22 February 2021

This week’s discussion will cover the following:

  • Potential prosecution of former President Trump for incitement of the Capitol attack
  • The SEC’s latest message following the “The Market Events”: trading suspension in In the Matter of SpectraScience, Inc. 
  • New Transparency International Corruption Report
  • The SEC’s ICO enforcement initiative lives on: SEC v. Coinseed, Inc., et al. (S.D.N.Y. 17 February 2021)

Video Link

15 February 2021

This week’s discussion will cover the following:

  • Update on Capitol riot cases
  • The legal definition  of “incitement of insurrection” 
  • Discussion of the reported DOJ and SEC investigations into the retail traders in last month’s market events
  • A reminder on the scope of the US insider trading laws, courtesy of SEC v. Mark Ahn (D. Mass) (also a parallel criminal case was filed)

Video Link

8 February 2021

This week’s discussion will cover the following:

  • An update on the Capitol Riots
  • Consideration of new sanctions on Russia
  • An update on stock market events, including the FINRA notice on broker-dealer “game-style” trading apps 

Video Link

1 February 2021

This week’s discussion will cover the following:

  • Analysis of the Reddit/WallStreetBets-driven stock surges, with a special appearance by Jerome’s 15 year old son, Sam, who has been following the events on Reddit and Discord  
  • Discussion of the Hoskins appeal and the future of the FCPA’s “Agency” theory
  • Update on the Capitol raid prosecutions

Video Link

18 January 2021

This week’s discussion will cover the following:

  • New SEC Enforcement Statute of Limitations and Disgorgement Provisions Contained in the NDAA
  • New AML Whistleblower Bounty Provision in the NDAA
  • Criminal charges against Capitol rioters
  • Julian Assange extradition case

Video Link

4 January 2021

This week’s discussion will cover the following:

  • What criminal statutes might apply to the attack on the Capitol?
    • 18 USC 2383 – Rebellion or Insurrection
    • 18 USC 2384 – Seditious Conspiracy
    • 18 USC 1752 – Restricted Building or Grounds
  • What, if any, criminal statutes might apply to President Trump’s call last week with Georgia Secretary of State?
  • The 25th Amendment — A brief history of the amendment, what the amendment provides for and how it might apply in light of these events.

Video Link

14 December 2020

Video Link

07 December 2020

Video Link

23 November 2020

Video Link

16 November 2020

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The post United States: This week in government enforcement appeared first on Global Compliance News.

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In brief

In this Quick Chat video, Baker McKenzie’s Labor and Employment, Trade Secrets and Antitrust lawyers explore the impact on employers of the severe limitations on post-employment noncompete restrictions outlined in President Biden’s Executive Order on Promoting Competition in the American Economy and the supporting Fact Sheet


Speakers: JT CharronJeff MartinoKatelyn Sprague and Billie Wenter.

https://video.bakermckenzie.com/embed?id=85c1a8fc-1df3-496d-983d-926330f28f97

To learn more about this Executive Order which announces 72 initiatives to increase antitrust enforcement, read our recent client alerts: 

Additionally, watch a 5-minute video overview of the key developments included in the Executive Order, presented by Baker McKenzie’s Global Antitrust Chair Mark Hamer and North America Antitrust Chair Creighton Macy.

https://video.bakermckenzie.com/embed?id=30c6f416-0318-4aed-aca3-e69042fe0dc1

Our Labor and Employment blog, The Employer Report, complements our video series, providing written legal updates on reopening and other hot topics. Past video chats are also linked in the blog sidebar for easy access to topics including remote working from outside of the employment jurisdiction, mandatory vaccinations in the workplace, employee testing and screening, inclusion and diversity, and much more.  

The post United States: Providing Perspective on President Biden’s Executive Order on Promoting Competition in the American Economy (Video Chat) appeared first on Global Compliance News.

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In brief

Shelter-in-place or stay-at-home orders have been prevalent throughout the United States since March 2020 as state and local governments have sought to protect their citizens from the spread of the COVID-19 virus while at the same time reopen their economies in accordance with phased reopening plans. Keeping abreast of the evolving nature of these orders and plans as the spread of the virus continues to evolve is critical to the functioning of all businesses throughout the country.


Baker McKenzie has a team in place that has been advising clients real-time on these most critical issues since the first orders were enacted. We are pleased to provide this Tracker, which identifies the relevant state-wide shelter-in-place orders and their related expiration dates, as well as the applicable state-wide reopening plans, in each of the 50 United States plus Washington, D.C. The “What’s Open” table on each page highlights the reopening status of four major sectors (office, manufacturing, retail and bars/restaurants).

In addition, the Tracker includes links to the relevant quarantine requirements or recommendations for incoming travelers in each state plus Washington, D.C.

Key developments reflected in this week’s update to the Tracker include the following:

  • The following jurisdictions extended their state-wide orders and/or the duration of the current phase of their reopening plans:  Connecticut and Illinois. 
  • The following jurisdictions eased restrictions, mask requirements, advanced to the next phase of their reopening plan and/or lifted their Covid-19 orders:  Virginia.

You can also view our brochure which highlights key areas of expertise where we can support your business’s tracking and reopening plans. Please call or email your regular Baker McKenzie contact if you require additional analysis regarding these matters.

Last updated 23 July 2021

Download US Shelter-In-Place / Reopening Tracker

The post United States: 50 State Shelter-In-Place/Reopening Tracker appeared first on Global Compliance News.

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In brief

Baker McKenzie’s Compensation Practice Group is pleased to provide you with the latest update of our Global Equity Matrix

Our matrix summarizes the key issues for employee share and cash awards and covers tax, securities, exchange control, labor law and data privacy considerations for such awards in 50 countries.


Keep this go-to resource at your fingertips by downloading our free Global Equity Matrix app – now redesigned for easier navigation!

If you have questions or would like additional detail on any of the information included, please contact us.

Access Now

The post International: Global Equity Matrix | July 2021 Edition appeared first on Global Compliance News.

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In the recent flurry of US Government activity related to Xinjiang, one thing is clear: trade compliance risks continue to increase for companies with supply chains that involve Xinjiang. These latest actions add to the expanding list of companies that face import bans, export bans, and sometimes both, in addition to broader measures under consideration in Congress. This blog post summarizes the past month’s developments.  Companies with Xinjiang anywhere in their supply chains should be aware of these risks. It is important to ensure that company functions (e.g., trade compliance, supply chain, vendor procurement, ESG, legal department) are communicating with one another to assess and mitigate these risks holistically. In addition to US trade compliance risks, companies should also consider risks on the Chinese side, including the recently enacted Chinese Anti-Foreign Sanctions Law, which can in some cases raise “conflict of law” and similar concerns. 

June 24:  Actions Targeting the Polysilicon Supply Chain

The White House issued a statement announcing a trio of measures targeting polysilicon supply chains. The White House stated that the United States was “translating” into action commitments made at the recent G7 Summit in Cornwall, United Kingdom to ensure that global supply chains are free from forced labor. Polysilicon is a key component in an estimated 95% of photovoltaic solar panels. It has been reported that as of 2020, five of the top six solar-grade polysilicon companies were headquartered in China, with 45% of the world supply of polysilicon originating from four producers with operations in Xinjiang.[1] The three measures announced on June 24 are:

  • US Customs and Border Protection (CBP) issued a Withhold Release Order (WRO) on silica-based products made by Hoshine Silicon Industry Co., Ltd., a company located in Xinjiang, and its subsidiaries. Personnel at all US ports of entry have been instructed to detain shipments that contain silica-based products made by Hoshine or materials and goods derived from or produced using those silica-based products. CBP has issued six WROs in 2021, raising the total to 49 currently-active WROs.
  • The Bureau of Industry and Security (“BIS”) in the Department of Commerce added five Chinese entities to the Entity List that were determined to have participated in forced labor and other human rights abuses in Xinjiang. It is prohibited for anyone to export, re-export, or in-country transfer commodities, software, or technology (“items“) subject to the Export Administration Regulations (“EAR“) to parties on the Entity List unless a license is obtained by BIS.
  • The Department of Labor updated its “List of Goods Produced by Child Labor or Forced Labor” to include polysilicon produced with forced labor in China. The list identifies goods that the Department of Labor has concluded that it has reason to believe are produced by child labor or forced labor in violation of international standards. Normally, this list is updated every two years. This update is the first time any goods have been added outside of the usual two-year cycle. 

July 12:  More Entity List Additions

BIS added 34 more entities to the Entity List based on a determination that they had been implicated in human rights violations and abuses in Xinjiang. As noted above, it is prohibited to export, reexport, or transfer items subject to the EAR to these parties without a BIS license.

July 13:  US Government Updates Xinjiang Supply Chain Business Advisory

The advisory was first issued in July 1, 2020 by the US Departments of State, Treasury, Commerce, and Homeland Security to caution US businesses about the various compliance risks associated with supply chain links to Xinjiang. Our Sanctions & Export Controls blog published a summary of the advisory in July 2020. The updated advisory was republished by the original four agencies along with the Office of the US Trade Representative and the US Department of Labor. It includes updated information about the US Government’s actions taken in connection with Xinjiang, including a summary of the WROs, Entity List additions, and economic sanctions imposed against parties determined to be involved in allegations of forced labor and other human rights issues in Xinjiang. The updated advisory urges heightened due diligence in line with UN, ILO, and OECD expectations.  

Ongoing:  Congress Moving on Xinjiang-related Legislation

The Uyghur Forced Labor Prevention Act (S. 65) has been moving through the Senate. After approval by the Senate Foreign Relations Committee in late June, on July 14, the bill was passed by voice vote in the Senate. A companion measure (H.R. 1155) has been moving through the House of Representatives and was approved by the House Foreign Affairs Committee in late April. Among other things, this legislation would establish a rebuttable presumption that all labor in Xinjiang is forced labor, in addition to imposing new US Securities and Exchange Commission (“SEC”) disclosure requirements. 

A China policy bill was approved by the House Foreign Affairs Committee on July 15 with further restrictions. The Ensuring American Global Leadership and Engagement (EAGLE) Act (H.R. 3524) contains a provision that would prohibit the importation into the US of goods, wares, articles and merchandise mined, produced or manufactured wholly or in part with forced labor in the Xinjiang region. In addition, if a public company knowingly created or provided technology to create mass population surveillance systems in Xinjiang or built and ran detention facilities in such region, the legislation would require the public company to disclose to the SEC the nature and extent of the activity, the gross revenues and net profits and whether the company intends to continue the activity.

Key Takeaways:

  • There has been a flurry of recent US Government activity that continues to increase the trade compliance risks for companies with supply chains that involve Xinjiang.
  • Companies with Xinjiang anywhere in their supply chains should ensure that company functions (e.g., trade compliance, supply chain, vendor procurement, ESG, legal department) are communicating with one another to assess and mitigate these risks holistically. They should also consider risks on the Chinese side, including the recently enacted Chinese Anti-Foreign Sanctions Law, which can in some cases raise “conflict of law” and similar concerns. 

[1] Xinjiang Supply Chain Business Advisory (July 13, 2021), Annex 4, available at https://www.state.gov/wp-content/uploads/2021/07/Xinjiang-Business-Advistory-13July2021.pdf.

The post United States, China: Recent US Developments Demonstrate Increasing Xinjiang-Related Trade Compliance Risks appeared first on Global Compliance News.

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