Corporate Investigations & White Collar Defense
Corporations and their executives are increasingly under scrutiny by federal and state prosecutors, especially in the aftermath of the economic meltdown and resulting increased government involvement in the economy. Conduct that in the past would result in regulatory sanctions or civil settlement is now being criminally investigated. In addition, the U.S. Department of Justice and many state and local prosecutors expect corporations to police themselves and their employees in order to ferret out internal wrongdoing. Corporations can face massive fines, exclusion from federal programs, and litigation from other government agencies, watchdog groups and consumers. Their executives can face financial and reputational ruin, as well as jail.
Manatt’s Corporate Investigations & White Collar Defense lawyers have a proven track record of success in defending corporate and individual clients in high-profile investigations and prosecutions. Companies and their executives regularly call on us to represent them in complex criminal, regulatory, and congressional matters, as well as in the parallel civil litigation that often accompanies those inquiries.
Experienced Defense Lawyers Backed by Deep Industry Expertise
Our team includes lawyers who previously have served as federal or state prosecutors, federal public defenders, and SEC officials. In addition, many of our lawyers have significant experience in crisis management and in dealing with the media. With such backgrounds, we are an ideal choice for corporate and individual clients facing scrutiny from federal or state prosecutors, the SEC or FINRA, federal or state inspectors general, state attorneys general, Congress or a well-coordinated plaintiffs’ bar.
Manatt lawyers have deep, substantive experience in industries such as banking and finance, securities, healthcare, pharmaceuticals, corporate transactions, media, entertainment and government. The ability to draw upon colleagues with specific industry knowledge effectively eliminates the learning curve in many situations.
Aggressive Representation of Clients
Our lawyers provide aggressive and effective representation at all stages of the criminal and regulatory processes. Our primary goal is to quickly resolve problems without indictment, inquiry or enforcement action. When that is not possible, we zealously represent our clients through the investigation and trial phases, and through sentencing and appeal where necessary.
Our skill as courtroom advocates is well known. We are not afraid to try cases that should be tried, and prosecutors and regulators know that. As a result, we are often able to obtain favorable outcomes for our clients short of trial.
Representative matters handled by our group's attorneys include:
A multinational company in a pending corruption investigation involving the President of an African country.
A pharmaceutical company in a pending investigation for FCPA violations in multiple countries.
A foreign financial institution in a federal criminal investigation of alleged tax evasion and money laundering. Our client avoided criminal charges.
Officers of a multinational oil drilling corporation in DOJ and SEC investigations into FCPA violations. No charges were brought.
Pharmaceutical executives under investigation by federal prosecutors in multiple jurisdictions regarding alleged off-label promotion. The investigation resulted in no charges against the executives represented by Manatt.
A major pharmaceutical company in an SEC investigation alleging channel stuffing and resulting in no charges being brought.
The former director of the liver transplant program at St. Vincent Medical Center in California, in a criminal case where our client and several doctors and nurses at the hospital were accused of conspiring to accept a liver on behalf of one patient with an intention to transplant the liver in another patient. Following a three-week jury trial, and after less than a day of deliberations, the jury acquitted our client on all counts.
The CEO of a publicly traded real estate company on stock fraud charges. After a four-month trial in federal court in Manhattan, our client was acquitted of all charges.
Private bank executives in an SEC investigation relating to investment advisory services. No charges were brought against the executives.
The CEO of a health insurer in a New York State Attorney General investigation that resulted in no charges being brought against the CEO.
The CFO of a New York City contractor in an investigation by the Manhattan DA's office and the NY State Department of Taxation and Finance resulting in no charges being brought against the CFO.
A financial institution in a New York State Attorney General investigation into alleged fraudulent practices. We convinced the attorney general not to bring any charges against our client.
A major retailer in a tax fraud investigation by the IRS, ICE and the Department of Justice. No charges were brought.
An investment firm and a global entertainment company in a FINRA investigation.
Internal Investigations
Prosecutors and other government investigators expect companies to conduct credible internal investigations after problems are uncovered. We have the experience to perform these reviews efficiently and effectively, and then to help clients determine whether and how to present the review’s findings to the government. Along the way, we help clients navigate difficult issues like privilege and indemnification of employees. And, where corporate reforms are necessary following a review, we assist clients in drafting and implementing compliance programs to ensure that problems are avoided in the future.
Recent internal investigations include:
A Fortune 500 HMO in an internal investigation relating to potential kickback issues. We proposed various improvements to the company's internal controls and compliance procedures.
A large health insurer in an internal investigation into allegations of fraud and embezzlement in its Medicare claims department. We conducted an extensive investigation, and assisted the client in disclosing the results of the investigation to appropriate law enforcement authorities.
Two audit committees of financial institutions. The first related to an internal investigation into the activities of its Chief Marketing Officer (CMO). We prepared an extensive report, and facilitated disclosure of the results of the investigation to the client’s external auditors, the FDIC, the California Department of Financial Institutions, and the SEC. The second involved a very sensitive investigation into the activities of a branch manager at another bank who was a member of the bank’s founding family. The branch manager eventually pled guilty to misapplication of bank funds.
A pharmaceutical company in an internal investigation into its interactions with physicians. We designed a compliance program to address weaknesses in internal controls.
Crisis Management
For both corporate and individual clients a key concern is minimizing the reputational effects of a government inquiry. We understand that a favorable outcome for our clients means vindication not only in the court of law but also in the court of public opinion. If authorized by a client, our lawyers are comfortable working with public relations specialists or directly with the media to minimize harmful publicity or to level the playing field of public opinion on issues that affect our representations. We also understand that, in some instances, clients will want to speak publicly about a matter in order to minimize reputational harm and that those needs must be balanced against a lawyer’s common desire that clients not speak publicly at all.
Corporate Compliance/Due Diligence
Our attorneys have the rare combination of business experience and a prosecutorial background. With that comes the ability to help companies avoid problems in the first place by working with them to develop corporate compliance programs. For example, our attorneys have designed tailored FCPA and anticorruption compliance programs for Fortune 100 companies, private equity and venture capital, and small and midsize entities conducting business abroad in industries as diverse as pharmaceuticals, healthcare, media, cleantech, consumer goods, data security and sports. Similarly our attorneys routinely help clients with conducting corruption due diligence on potential targets. Our involvement has helped clients better assess the costs and value of the deal and avoid a likely enforcement outcome were the deal to have proceeded without that knowledge.
Examples include:
A multinational company in conducting due diligence into potential FCPA and global anticorruption violations by a target company.
A large pharmaceutical company in conducting M&A due diligence regarding the sales and marketing practices of a target company.
An investment firm in assessing potential FCPA issues in an investment target.
Proven Success
Other engagements of our attorneys include the representation of:
An aluminum manufacturing company and its founder, in obtaining a termination letter from the SEC essentially dropping all claims for alleged securities law violations. We were retained in the matter after our client was already subject to a formal SEC investigation, and we counseled the client through the course of the full investigation.
The former Chief of Staff to the Governor of New York State in response to parallel inquiries by the Albany County District Attorney’s Office, New York State Legislature, and the New York State Commission on Public Integrity into alleged misuse of government resources. No criminal charges were filed and our client obtained a favorable settlement of ethics charges against him.
A Select Committee of the Connecticut General Assembly during the impeachment proceedings for then Governor John G. Rowland. The Governor resigned during the pendency of the inquiry that we led.
A large health insurer in response to multiple subpoenas issued by the California Attorney General in connection with a wide-ranging investigation of the health insurance industry. As a result of our work, the AG’s office appears to have decided to not actively pursue the investigation against our client even though the investigation continues concerning the client’s competitors.
A federal contractor in a pending U.S. Department of Defense Office of the Inspector General country of origin investigation.
A pharmaceutical company in a DOJ and U.S. Department of Health & Human Services investigation relating to sales and marketing practices and resulting in a deferred prosecution agreement.
The former general counsel of a failed investment company in an investigation by the U.S. Attorney’s Office and the SEC. We convinced those agencies that the client was more valuable as a witness and avoided criminal charges.
A major healthcare delivery systems company in a False Claims Qui Tam action. We prevailed on summary judgment.
A California-based community bank in monitoring a high-profile FCPA prosecution of one of our client’s borrowers, a manufacturing company. Our client has a loan outstanding to the borrower and we are protecting the client’s interests in connection with the government seeking to forfeit assets.
An investment advisory firm in connection with ongoing inquiries by a variety of state and federal agencies into “pay to play” relating to obtaining investments from public pension funds. We facilitated cooperation by producing documents and making individuals available for witness interviews.
A pharmaceutical company in a pending multidefendant False Claims Act Qui Tam matter pending in the District of Massachusetts. The plaintiff is a former employee at the Health Care Financing Administration (now Centers for Medicare & Medicaid Services).
The former CEO of a publicly traded company through an investigation of alleged stock option backdating by federal prosecutors and the SEC, as well as a parallel civil class action litigation resulting in a deferred prosecution agreement.
A corporate officer accused of violating the Export Control Act. We secured a favorable plea agreement for our client.
An executive of an international liquor distributor charged with tax crimes resulting in a sentence of probation.