Publication
Global rules on foreign direct investment (FDI)
Cross-border acquisitions and investments increasingly trigger foreign direct investment (FDI) screening requirements.
United States | Publication | March 2022
In his State of the Union address, President Biden announced the DOJ will soon name a Chief Prosecutor for pandemic fraud. A fact sheet from the White House explains that the Chief Prosecutor will expand the efforts of the COVID-19 Fraud Enforcement Task Force by “lead[ing] teams of specialized prosecutors and agents focusing on major targets of pandemic fraud” and by deploying “state-of-the-art data analytics tools to connect the dots on identity theft and other complex fraud schemes.” But perhaps even more importantly, President Biden “will call on Congress to provide the resources needed for the DOJ Task Force to expand prosecutions of egregious pandemic fraud.”
Over the past year, this Firm has emphasized that any major pandemic-fraud investigations will share two characteristics: (1) they will be driven by data and (2) they will be the fruit of interagency cooperation. The White House’s announcement that a new Chief Prosecutor will leverage the interagency Fraud Enforcement Task Force and use “state-of-the-art data analytics tools” suggests things are developing just as predicted.
Yet it remains to be seen whether the appointment of a Chief Prosecutor will lead to more sophisticated cases. The pandemic-fraud space is already occupied by a formidable stable of watchdogs. The CARES Act created the Special Inspector General for Pandemic Recovery and the Pandemic Response Accountability Committee, both of which have been building and referring cases over the past two years. Plus, the inspector general for each agency that managed a relief program has jurisdiction to investigate fraud on those programs. And just last year, AG Merrick Garland created the Fraud Enforcement Task Force mentioned above. It is therefore unclear what, practically, will change with the appointment of a Chief Prosecutor.
Nevertheless, the announcement—especially that President Biden will ask Congress for increased oversight funding—indicates the Administration continues to feel pressure to show results, and to do so by pursuing more than what many have characterized as low-hanging fruit. Critically, some recent developments do suggest the government is making headway into new territory. In February 2022, for example, DOJ announced a guilty plea in the first criminal case involving abuse of the CARES Act’s Healthcare Provider Relief Fund. Just this week, the Southern District of New York announced the arrest of the CEO of a PPP lender on multiple charges of fraud. And in September 2021, the Eastern District of New York announced charges against former employees of a major bank for their alleged involvement in PPP fraud schemes. These cases are notable, with one representing the first criminal charges involving pandemic healthcare funds and the latter two suggesting banks must be diligent in their compliance programs to ensure the conduct of their officers and employees does not create legal exposure.
Accordingly, all indications are that the same entities the government once enlisted to operationalize its pandemic-recovery programs—i.e., financial institutions and healthcare providers—must remain on alert as the government postures itself to show results.
Norton Rose Fulbright represents businesses, executives and healthcare providers in government investigations and has an experienced team of former high-level government officials uniquely positioned to navigate investigations into participation in pandemic relief programs. If you or your business are involved in a government investigation or receive a government subpoena or civil investigative demand (CID), our team will defend your interests aggressively and effectively.
Publication
Cross-border acquisitions and investments increasingly trigger foreign direct investment (FDI) screening requirements.
Publication
On February 2, 2024, the Belgian Presidency of the Council of the European Union confirmed that the Committee of Permanent Representatives had signed the Artificial Intelligence (AI) Regulation, referred to as the AI Act. Approval by the EU Parliament followed on 13 March 2024, and the AI Act is likely to appear in the EU’s Official Journal around May 2024. The AI Act aims to establish a stringent legal framework governing the development, marketing, and utilisation of artificial intelligence within the region, thereby marking a significant advancement in the regulation of this burgeoning domain.
Publication
The private credit market and direct lending have grown and diversified immensely in the past decade, offering alternative sources and terms of debt compared to those historically provided by the syndicated leveraged loan and public issuance markets. Consequently, they are fast becoming pivotal components in the capital ecosystem, so much so that the Bank of England consider that the private credit market is currently responsible for approximately $1.8 trillion of debt issuance, which is four times its size in 2015. This growth has been particularly pronounced in Europe and the US but there has also been significant activity in Asia.
Subscribe and stay up to date with the latest legal news, information and events . . .
© Norton Rose Fulbright LLP 2023