TheCorporateCounsel.net

A recent Morgan Lewis memo on white collar issues says that the DOJ is prioritizing corporate criminal enforcement for misconduct implicating national security issues. Here’s an excerpt:

Since the beginning of the Biden administration, the DOJ has loudly proclaimed an interest in increased corporate criminal enforcement in traditional white-collar spaces. However, in recent months, the DOJ has signaled an additional priority: corporate enforcement related to national security issues. In the fall of 2023, the DOJ announced the appointment of the National Security Division’s first chief counsel for corporate enforcement. Ian Richardson, a former federal prosecutor in the US District Court for the Eastern District of New York, was appointed to coordinate and oversee the prosecution of corporate crime relating to US national security. Additionally, Christian J. Nauvel was named as Deputy Chief Counsel for Corporate Enforcement.

Given some of the national security issues that have emerged in recent years, from trade secret theft to the visibility of non-state actors, the DOJ is looking for opportunities to send a message to companies that they need to crack down on misconduct that could have serious national security implications. The DOJ’s focus on national security extends to processes like the CFIUS regulatory process, which is focused on reviewing cross-border investments and not on criminal activity.

The memo says that this increased emphasis on enforcement means that the DOJ will likely increase the number of investigations and subpoenas, and that companies with activities in regions such as China, the Middle East, and Central Asia face the most significant risk of attracting the DOJ’s attention.

– John Jenkins