Tag:DOJ
Profits Over Patients: The DOJ’s Fraud Investigation into UnitedHealth’s Medicare Practices
The Department of Justice (DOJ) has launched a civil fraud investigation into UnitedHealth’s Medicare billing practices, scrutinizing allegations that the company improperly inflated patient diagnoses to secure higher federal payments. While the investigation was publicly announced via the Wall Street Journal recently, it has been underway since 2024. This development follows the December 2024 death of UnitedHealth CEO Brian Thompson, which sparked renewed public discourse on the ethics of insurance companies. Many individuals came forward with stories of denied coverage for life-saving treatments, raising broader concerns about the practices of private insurers managing Medicare benefits.
Eggflation: The Rising Cost of Eggs and Its Impact on Consumers
Egg prices are soaring, but is it just supply issues—or something more? While avian flu and regulations have strained production, major suppliers are raking in record profits, raising suspicions of price manipulation. A federal jury recently found top producers guilty of price-fixing, fueling concerns that consumers are being taken advantage of. As grocery bills climb, the question remains: who’s really cracking under pressure?
Recording Justice: How BWCs Impact Accountability and Transparency
Body-worn cameras, known as BWCs, are devices fitted to the outside of an officer’s uniform “that record interactions between community members and law enforcement officers.” These cameras record both video and audio and can be used for numerous reasons, such as providing transparency to members of the greater community and documenting evidence for future investigations or litigation purposes. BWCs have widely become an essential tool used by law enforcement agencies to enhance accountability, improve transparency, and serve as invaluable tools in legal proceedings.
Studies suggest BWCs contribute to a reduction in use-of-force incidents. The absence of a federal mandate has led to inconsistent state regulations, which has created compliance challenges and sparked legal debates. This has led to increased compliance challenges and legal debates. There have been several efforts to standardize BWC policies around the country, such as a push by the Department of Justice for a nationwide adoption and H.R. 843, a proposed legislation looking to increase BWC usage. Unfortunately, issues such as financial burdens, officer misuse, and legal barriers continually pose challenges for widespread adoption. Even with all of these obstacles, BWCs have been proven to have a significant impact in the courtroom, helping influence trial strategies and even charging decisions made by attorneys. While BWCs are not the antidote for police misconduct, they are an important step towards communities with greater accountability and justice.
Regulatory Framework for Airline Mergers: Recent Scrutiny by Regulators Leads to Splitting Antitrust Decisions by the DOJ and DOT
Alaska Airlines and Hawaiian Airlines’ proposed $1.9 billion merger has survived litigation by the U.S. Department of Justice (“DOJ”) and the Department of Transportation (“DOT”) following recent scrutiny of airlines by regulators. Earlier this year, a federal judge blocked the $3.8 billion acquisition of Spirit Airlines by JetBlue due to antitrust concerns. The DOJ successfully blocked the acquisition by arguing it would stifle competition and raise prices for consumers. The Alaska Airlines and Hawaiian Airlines merger managed to survive an inquiry by the DOT leading to split decisions by regulators.
Generative AI- The Next Frontier in Fighting Financial Crime
Artificial intelligence (AI) is the latest tool in a financial institution’s arsenal to restrict the flow of money being channeled to fund illegal activities worldwide. As criminals get more innovative and sophisticated in using the latest technology to evade detection of their financial crimes, financial institutions must follow suit and utilize similar technology to root out these crimes or risk facing regulatory sanctions. Money laundering generally refers to financial transactions in which criminals, including terrorist organizations, attempt to disguise the proceeds of their illicit activities by making the funds appear to have come from a legitimate source. However, this is not a new phenomenon. Congress passed the Bank Secrecy Act (BSA) in 1970 to ensure financial institutions follow a set of guidelines known as KYC (Know Your Customer/Client) to detect and prevent money laundering through their systems.
Turbulent Times: Boeing’s Ongoing Struggles with Safety and Compliance
Boeing is the world’s largest aerospace company, and the leading manufacturer of commercial jetliners. Its reputation as a highly profitable and respected corporation has dwindled over the last couple of years, and 2024 appears to be its worst year yet. Safety incidents involving particular Boeing models have triggered immediate safety concerns and have unearthed significant cultural and ethical challenges within the company. Actions of regulatory bodies tasked with ensuring company safety compliance and accident prevention have revealed a larger-scale issue with aviation industry safety, and the lack of meaningful reform by the Department of Justice (DOJ).
PGA Tour and LIV Golf Partnership: A Swing and a Miss?
The PGA Tour and LIV Golf have agreed to a partnership, ending the rivalry that has divided golf for the past year. While golf fans may be rejoicing, it may be a premature celebration as the Justice Department has already been investigating the golf industry for anticompetitive behavior. The announcement of the PGA Tour and LIV Golf partnership has raised further concerns about monopolistic practices within the golf industry.
Time to Rethink Corporate Compliance amid DOJ’s New Guidelines
The U.S. Department of Justice (DOJ) announced significant changes to its Evaluation of Corporate Compliance Programs (ECCP) on March 2, 2023, at the American Bar Association’s National Institute on White Collar Crime. By investigating deeper into companies’ compliance programs, DOJ now provides new stricter guidelines and emphasizes its vigilance and the level of commitment expected from companies. The latest announcement illustrates DOJ’s continued emphasis on company policies regarding compliance incentives and disincentives in executive compensation and the preservation of company communications made via personal devices and instant messaging applications.
Growing Banking Crisis: Silicon Valley Bank Failure
Founded in 1983, Silicon Valley Bank (SVB) is a midsize California-based lender that shook the foundation of the entire global financial system. Regulators closed SVB on March 10, making it the largest bank failure since the 2008 financial crisis and the second largest in U.S. history. While SVB offered various services from standard checking accounts to loans, it was primarily home to venture capitalists in the tech industry. Therefore, the majority of the corporate deposits were larger than the Federal Deposit Insurance Corporation’s (FDIC) $250,000 insurance limit, leaving over $150 billion in uninsured deposits at the end of 2022. The sudden collapse caused a frenzy leaving companies and investors vulnerable having already experienced mass layoffs in the tech industry.
Federal Response to the Collapse of Silicon Valley
The collapse of Silicon Valley Bank (SVB), the 16th-largest bank in the United States, in early March of this year is considered the biggest bank failure since the fall of Washington Mutual during the 2008 global financial crisis. After 40 years of success, the bank collapsed swiftly and unexpectedly. The collapse has ricocheted through the industry, provoking bank closures, rattling the global markets, and threatening the livelihood of startups. The Federal government has not only intervened and taken over the bank, but prosecutors and regulators from the Department of Justice (DOJ) and Securities and Exchange Commission (SEC) have initiated preliminary investigations. Inevitably the collapse will cause regulators to revise the current banking rules and pursue stricter regulation in order to prevent the demise of other banks and a financial crisis.