Tekapult
TM
FEDERAL LAW DESK REFERENCE FOR CORPORATE COMPLIANCE
Federal Regulations and Agency Guidance Organized by Risk-Specific tPrimers TM
Corporate Fraud and Integrity
Corporate Mail and Wire Fraud Liability
This tPrimer delineates and summarizes the mail and wire fraud statutes which govern the use of interstate communications, including email, text messages, faxes, TV, radio, phone calls, internet games, chat rooms, social media, and other wire transmissions. These statutes are integrated into as an element of and used in conjunction with other criminal and civil offenses, like Medicare, bank, securities, health care, money laundering and other types of fraud perpetration. Enron’s financial machinations and VW/Audi's emission test (“Defeat Device”) fraud cases exemplify the types of wrongful corporate misconduct which caused penalties pursuant to these statutes.
FCPA – Enforcement of Anti-Corruption/Anti-Bribery Laws
Bribery of either foreign or domestic government officials exposes individuals, a company’s Board of Directors, executives, employees, and independent contractors to a high risk of potential criminal and civil liability. Penalties for bribery include millions of dollars in fines and prison sentences for company principal executives. Each company should have an FCPA compliance plan, implement enforcementmeasures, and train its staff to prevent violations of federal laws as per the wrongful conduct examples, their outcome and possible defenses as outlined in the pertinent tPrimer.
Securities Fraud - "Insider Trading"
An insider’s use of nonpublic information to trade securities constitutes a fraudulent violation of their fiduciary duty to the issuing company, when a security is bought or sold in breach relationship of confidence while in possession of nonpublic information. Potential violators may include financial professionals, managers, corporate insiders, attorneys, and others who gained access to nonpublic or confidential corporate information. Liability may also be imputed to tip-receiving “friends.” The definition of "insiders" include company’s officers, directors, individuals who control at least 10% of a company’s equity securities, and professionals who come into contact with the company’s nonpublic information.