Judge Andrew S. Oldham and the majority focused their decision on a requirement in the Securities Exchange Act dictating that the SEC must first find that any proposed regulation “is related to the purposes of the Exchange Act” before approving it. Judge Stephen A. Higginson focused his dissent on the “limited reviewing role” Congress carved out for the SEC as it relates to its ability to approve rules proposed by “self-regulatory organizations” like Nasdaq.
Real Estate Developer Pleads Guilty in Dallas City Hall Corruption Scandal
Sherman Roberts, president and CEO of City Wide Community Development Corporation, pleaded guilty to a federal charge of conspiring to commit bribery. Roberts is accused of bribing two former Dallas City Council members in exchange for their support of his real estate projects.
DOJ’s Updated Corporate Compliance Guidance Gives Companies More Reasons to Focus on AI and Technology
Tracking themes apparent in other recent guidance issued by DOJ, companies now have more reason to focus on AI and the effective use of emerging technologies and data analytics, even when engaging in M&A deals, to enhance corporate compliance programs. Perhaps most significantly, the DOJ now asks companies to demonstrate how they are utilizing newly available technology such as AI and whether the companies have adequately prepared for the risks associated with using such technologies.
Bell Nunnally Recruits FINRA Enforcement Pro
John Guild has joined Bell Nunnally after seven-plus years as a senior attorney for the Financial Industry Regulatory Authority.
Jackson Walker Adds Cathy Garza to Electric Regulatory Practice in Austin
Garza said it was time to “embark on a new journey” and leave her “professional home” at Eversheds Sutherland, where she practiced for nine years.
Pharmacy CEO Convicted on All Counts in $160M Medicare Fraud Trial
Mohamed Mokbel was convicted on 15 charges for his role in what prosecutors said was a multipart scheme to defraud the government that involved deceiving doctors and patients, too. Mokbel, former CEO of 4M Pharmacies, argued all he was guilty of was trying to compete with the powerful pharmacy benefit managers, entities that manage prescription drug programs for health plans and control 80 percent of the market. The panel of 12 deliberated for about five hours Tuesday before returning the unanimous verdict.
Testimony Begins in $160M Medicare Fraud Trial of Pharmacy CEO
The CEO of 4M Pharmaceuticals, Mohamed Mokbel, is facing 15 charges related to his alleged role in a Medicare fraud scheme that prosecutors said involved call centers in Egypt and the Philippines, targeted elderly individuals and resulted in a $160 million fraud on the government. Mokbel’s attorneys told jurors Tuesday their client was operating within the bounds of the law with his business plan, which involved payments to a third-party lead generator.
King & Spalding Lands Former Top COVID-19 Fraud Prosecutor
Michael Galdo enters the private sector after more than 15 years as a federal prosecutor. He recently served as the Department of Justice’s Director of COVID-19 Fraud Enforcement in the Office of the Deputy Attorney General and was an assistant U.S. attorney in charge of cybercrime in the Western District of Texas.