INSIDE COMPLIANCE – Page 43 – Loyola University Chicago School of Law

Chicago’s “Decriminalization” of Sex Work

October 22, 2021Uncategorized

In the United States, according to a HG study, every year, between 70,000 and 80,000 people are arrested for prostitution related offenses, where roughly seventy percent of arrests are made against women sellers, twenty percent of arrests are made against men sellers, and a mere ten percent are made against buyers. In Chicago, the number of arrests are comparable, where according to a Chicago Alliance Against Sexual Exploitation study, in 2013, approximately seventy-four percent of prostitution-related arrests were for selling, and in 2017, ninety percent of prostitution-related arrests were for selling.

Following the enactment of similar laws in other states, in 2014, Illinois passed Public Act 98-1013 which creates a financial incentive for the enforcement of prostitution laws against buyers and traffickers, rather than sellers. However, the Chicago Police Department (CPD) continues to prioritize arrests of sex sellers over buyers. Criminalization of sex work disproportionately harms LGBTQ people, communities of color, and immigrants. At a local level, Chicago needs to decriminalize sex work and reallocate CPD’s enforcement budget to social welfare services.

Journal of Regulatory ComplianceRegulation

The Pandora Papers and the Bank Secrecy Act

October 22, 2021Finance & Banking, Fraud & Abuse

The recent Pandora Papers leak in October 2021 shined the light on the massive and intricate web of offshore accounting that allows for insurmountable amounts of wealth to be hidden throughout the world. One of the most shocking revelations of these Papers was how heavily the United States was implicated in creating and perpetuating this system. As such, legislators have been pressured to find a way to crackdown on this sort of offshore money. One way that they have proposed addressing the problem is by amending the United States’ current criminal financial legislation, the Bank Secrecy Act.

complianceenforcementfinanceJournal of Regulatory ComplianceprivacyPrivacy & SecurityRegulationrulemaking

The Story That Sounded Too Good to Be True Was, Indeed, Too Good to Be True.

October 21, 2021Fraud & Abuse, The Marketplace

The process of the criminal trial of the youngest woman self-made billionaire, has recently started up again after being stalled due to Covid restrictions in the past year. Former CEO and founder of Theranos, Elizabeth Holmes, and her former president and one-time boyfriend, Ramesh Balwani, have been accused of misleading investors and raising hundreds of millions of dollars by making false or exaggerated claims in defiance of the anti-fraud provisions of federal securities laws. While she is currently facing a federal indictment on twelve different charges, including two counts of conspiracy to commit wire fraud and ten counts of wire fraud, Holmes has already settled her civil charges, which were brought forth by the Securities Exchange Commission (SEC). The civil charges brought forth by the SEC have now put Silicon Valley on alert by ensuring that technology companies who claim that they have a new groundbreaking technology that can change the world must be based on factual evidence, not purely myths.

Corporate AccountabilityCorporate Compliancefraudfraud and abuseSecurities and Exchange Commissiontechnology

Put the Salary in the Job Description – Pay Transparency Laws’ Impact on Hiring and Pay Equity

October 20, 2021Uncategorized

Lately, more and more job applicants seem to want to know the expected salary prior to applying to a job. In 2018, LinkedIn conducted a survey of 450 members asking which parts of a job description they found the most important. When surveyed, sixty-one percent reported that compensation was the most important, indicating that compensation is a key factor for many applicants in evaluating whether a potential job opening is worth their time. Although companies offer their reasons for keeping salary information from applicants, pay transparency, especially in the recruiting stages, is one of the main ways to achieve pay equity

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Avengers Assemble for Battle Over Copyright Claims

October 19, 2021Uncategorized

The Walt Disney Company has filed multiple lawsuits in the hopes of retaining the copyright to some of their most popular Marvel superheroes, including the likes of blockbuster characters such as Spider-Man and Thor. While Marvel Entertainment, a subsidiary of The Walt Disney Company, has been in multiple long-term licensing deals to maintain the rights to these characters for many years, some of those are approaching a potential expiration date as the original artists and illustrators of these characters seek to reclaim their creative rights.

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SEC Brings First Charges Involving Regulation Crowdfunding

October 19, 2021Finance & Banking, Fraud & Abuse

On September 20, the United States Securities and Exchange Commission charged three individuals with conducting fraudulent crowdfunding schemes while also bringing charges against the crowdfunding portal where the offerings were conducted in SEC v. Shumake. As the first case being pursued under Regulation Crowdfunding, a number of questions wait on the horizon regarding the responsibility of crowdfunding platforms to protect investors when orchestrating such offerings.

crowdfundingfraudissuerssecuritiesSecurities and Exchange Commission

A Case for Regulating Facebook

October 18, 2021Drugs & Devices

Recently, whistleblower Frances Haugen testified before a Senate subcommittee that Facebook has been deliberately putting its own profits before users’ safety. As Facebook’s former product manager for civic misinformation, Haugen calls for federal regulation of social media platforms and asserts that Facebook will not solve what she calls a “crisis” of deliberately ignoring users’ wellbeing for the sake of its own profits without Congress’s help. She points to tobacco, automobiles, and opioids, stating that when it became clear that those products were harming people, the government took action.

Journal of Regulatory Compliancemental healthPrivacy & SecurityRegulationsocial mediatechnologytobaccowhistleblower

Regulating Government Agencies & Contractors: Banning the Use of ‘Hostile Architecture’ Through A City-Wide Ordinance

October 17, 2021Uncategorized

The way we construct our buildings, parks, and communities are reflective of our collective interests and values. Often when constructing public spaces, contractors and city officials employ deliberate methods of design that discourage their use by homeless people, this is known as hostile architecture. From bifurcated city benches to boulders being placed under city overpasses, hostile architecture is an affirmative policy action that is used by cities to discourage and eliminate use of public spaces by those who are unhoused. Collectively, these actions amount to another weapon in the arsenal of government actors in their war against homeless people, instead of homelessness. In order to stop these harmful building and design policies, cities around the United States, including Chicago, should implement regulatory policies banning their use with public funds or through governmental contractors.

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SEC Whistleblower Program Surpasses $1 Billion in Award Payouts

October 14, 2021Finance & Banking, Fraud & Abuse

The U.S. Securities and Exchange Commission (SEC) reached a rather auspicious milestone in September when it announced that, with the addition of two recent awards totaling $114 million, the aggregate amount of monies paid out under the SEC’s whistleblower program since its implementation in 2011 has exceeded $1 billion. In fiscal year 2021 alone, the SEC has awarded a record $500 million. The SEC also reported that award payments have been made to a total of 207 whistleblowers. In a statement, SEC Chairman Gary Gensler said, “[This] announcement underscores the important role that whistleblowers play in helping the SEC detect, investigate and prosecute potential violations of the securities laws.” The two most recent awards included a payment of $110 million to an individual who, according to the SEC, provided the SEC and another regulatory agency with “independent analysis that substantially advanced the SEC’s and the other agency’s investigation” and culminated in successful enforcement actions. Another whistleblower also provided original information to the SEC and received an award of approximately $4 million, although the smaller amount reflects the fact that the information passed on was significantly more limited in scope. As is its standard policy, the SEC declined to specifically name either of the whistleblowers involved or the cases and companies to which they were connected.

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Demonetize the Children

October 14, 2021Uncategorized

The Fair Labor Standards Act (“the Act”), enacted in 1938, protects public and private employees with a federal minimum wage, requirements for overtime pay, and youth employment standards. Despite protections established for children under the Act, children in the entertainment industry are expressly excluded from its protections. Instead, minors in the entertainment industry must rely on state regulation of their employment, which is often stricter and more protective than the Act. However, there is a massive loophole in that the entertainment industry in most states does not include child influencers and social media stars. With the increase in social media in the last decade, children in the social media sector are left in limbo about their rights and employment protections. State entertainment laws for minors must be extended to include the fast-growing number of children growing up in social media fame.

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