Tag:Regulation
Largest Alleged Violation in FEC History – Investigation Blocked, Case Closed
In June, the Federal Elections Commission (FEC) announced that they would not investigate allegations that two of former President Trump’s campaign committees illegally misreported hundreds of millions of dollars in spending. If true, these allegations would constitute the “largest alleged violation in FEC history” according to FEC Commissioner Ellen L. Weintraub. The initial complaint alleged that the committees failed to disclose payments to friends and family members of the former President, such as Lara Trump, who is Trump’s daughter-in-law, and Kimberly Guilfoyle – Donald Trump Jr.’s fiancé. In it’s decision, the FEC’s Republican Commissioners voted not to investigate the matter, which is therefore no longer being pursued. This situation illustrates how the FEC has consistently failed to investigate the Trump reelection campaign for alleged violations of campaign finance law.
Facing the Fire: A Lesson on Whistleblower Protections
For compliance programs to be effective, bad behavior must be reported internally to management and an avenue must exist to report externally to regulators and the media. For whistleblowers to be willing to come forward, it is critical that they are protected.
Department of Justice Announces The Second Monaco Memo
On September 15, 2022, Deputy Attorney General Lisa Monaco issued a memorandum to the Department of Justice (DOJ) titled “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group”. This memorandum is otherwise known as the “Second Monaco Memo”, named after the Deputy Attorney General. This is the second memorandum Monaco has issued in the past year, as the first memorandum was issued in October of 2021. The first memorandum announced the establishment of a Corporate Crime Advisory group, its purpose was to guide and review the DOJ’s approach to corporate criminal enforcement. These memorandums are important to both the defense bar and corporate counsel, as they establish rules and guidelines for corporate criminal enforcement.
FDA’s Response to Baby Formula Shortage
This year the Food and Drug Administration (FDA) has come under fire for its slow response to the nationwide baby formula shortage. In September 2022, FDA Commissioner Robert M. Califf authorized the release of an internal report. The report details how the baby formula shortage occurred, the FDA’s response to the shortage, and the challenges it faced in resolving the shortage. The report also revealed the changes in FDA regulatory procedure to ensure another shortage does not occur.
DOJ’s Unveils New Tool to Fight Corporate Crime: Care About Compliance
In an effort to deter corporate crime, the Justice Department (DOJ) has implemented a new policy aimed at giving chief compliance officers more authority. Chief Compliance Officers (CCOs) may now need to certify the integrity of their compliance programs and be personally liable if their programs do not “reasonably prevent and deter compliance issues.” According to Brian Michael, a former chief compliance officer (CCO), some industry professionals fear that such a policy would place compliance officers in a position to be personally liable for decisions that they have little say over. There is also worry that implementing such a policy would place CCOs in direct conflict with senior executives. However, Kenneth Polite, assistant attorney general in charge of the DOJ’s criminal division, insists that the new policy will place CCOs in a better position to ensure the integrity of their compliance programs. Polite hopes to force corporations to invest in compliance now rather than pay later.
Loot Boxes: Benign Entertainment or Gambling for Minors?
In 2019, Senator Josh Hawley put forth legislation to regulate loot boxes advertised or sold to minors in video games. The legislation was referred to the Committee on Commerce, Science, and Transportation but did not move any further. The Federal Trade Commission (FTC) has been researching the use of loot boxes since 2018 and has done multiple workshops to promote public awareness of microtransactions. More recently there has been public sentiment for changes in the gaming industry and other countries such as Singapore have taken steps this year to protect consumers from predatory practices of game companies.
Madigan-ComEd Bribery Scandal Prompts an Overhaul of Illinois Utility Regulation
Daniel Bourgault Senior Editor Loyola University of Chicago School of Law, JD 2022 In 2020, Commonwealth Edison Company (ComEd) reached a deferred prosecution agreement with the U.S. Attorney’s office as to a federal investigation into the utility company for bribing a high-level elected official. In the agreement, ComEd agreed to pay a fine of $200 …
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Cracking Down on Ghost Guns
In an effort to reduce gun violence, President Biden has announced tighter regulations on the sale of “ghost guns.” Ghost guns are guns sold in several pieces and subsequently assembled by the buyer. Historically, gun kits have not been required to have serial numbers and their sales have not required background checks, which has made them far easier to acquire than normal firearms, despite the final product being substantially the same.
Regulatory Reduction Efforts in Ohio: Can It Work?
Economist Michael Mandel analogized regulations to pebbles in a stream. If you drop one pebble into a stream, its individual effect is negligible. If you deposit a thousand pebbles into a stream, the flow of the water slows down. On the other hand, if you pour one hundred thousand pebbles into a stream, the stream’s flow can become blocked altogether. Researchers note that the amount of regulation in the U.S., both at the state and federal level, has grown steadily over the years. It is a process known as regulatory accumulation. Whether it involves regulating the fuel efficiency of cars, labels on food products or the number of beds permitted in a hospital, new rules are added every year. Yet, few, if any, regulations are ever taken off the books despite the fact that many become unnecessary or virtually obsolete. Some economists argue that overregulation has the effect of slowing economic growth and ultimately impacting the well-being of society. But the task is a difficult one: how does a government identify which regulations should be cut and who should lead the effort?
Is Stablecoin Really Stable?
On June 22nd, ten-year-old Yuna was reported missing by her teachers. Just one week later, the police discovered a sedan in the southernmost coast of South Korea, two hours away from Yuna’s home. The three bodies recovered belonged to Yuna and her parents, both in their thirties. The police suspected suicide. Among the parent’s last online searches included “LUNA,” “sleeping pills,” and “how to commit suicide.” Evidence further suggested that Yuna’s parents were unemployed, invested their lives savings into the cryptocurrency market, and struggled from financial debt of $100,000.