Notice: We appreciate your interest in Massumi + Consoli. If your inquiry relates to a legal matter and you are not already a current client of the firm, please do not transmit any confidential information to us. Before taking on a representation, we must determine whether we are in a position to assist you and agree on the terms and conditions of engagement with you. Until we have completed such steps, we will not be deemed to have a lawyer-client relationship with you, and will have no duty to keep confidential the information we receive from you. Thank you for your understanding.
Partner
![Lewis Zirogiannis, P.C., Partner at Massumi + Consolli LLP]()
Lewis Zirogiannis, P.C.
Partner
Lewis Zirogiannis, P.C.
Lewis Zirogiannis is a Partner focused on litigation and dispute resolution, compliance, investigations and government and regulatory enforcement matters.
Practice Areas
Experience
Lewis has extensive experience advising private equity firms, their portfolio companies, other companies and enterprises, C-suite officers and boards of directors on all aspects of complex commercial litigation, white collar defense and regulatory enforcement matters across a wide range of industries, including financial services, technology, energy, transportation and healthcare.
Lewis has appeared on behalf of his clients in the U.S. Supreme Court and federal and state trial and appellate courts around the country and has conducted investigations in Asia, Latin America, Africa and Europe.
In addition to his private practice experience and federal clerkship, Lewis spent a decade in executive-level, in-house counsel positions at two Fortune 50 global companies spanning the financial services, energy and technology sectors. In these leadership positions, he worked closely with boards of directors and regulatory agencies, while managing global compliance programs, high-stakes litigation, government and internal investigations and regulatory affairs.
Lewis’ in-house experience gives him a keen ability to identify and define his clients’ specific needs at the outset of each engagement. By working closely with his clients to gain a deep understanding of their business objectives, he designs legal strategies that are both appropriately risk-based and tailored to maximize efficiency, while minimizing the disruptions posed by litigation and regulatory challenges.
Among other accolades, Lewis has been recognized by Best Lawyers® in The Best Lawyers in America® for Commercial Litigation. He also holds advanced industry certifications in the areas of anti-corruption compliance, anti-money laundering compliance, fintech compliance and cybersecurity risk management.
Prior to joining Massumi + Consoli, Lewis was a Partner at Baker Botts.
Education
- Hofstra School of Law, J.D.
- Adelphi University, B.A.
Bar Admissions
- California
- New York
- Texas
Courts
- Supreme Court of the United States
- U.S. Court of Appeals for the Ninth Circuit
- U.S. Court of Appeals for the Second Circuit
- U.S. District Court for the Northern District of California
- U.S. District Court for the Northern District of Texas
- U.S. District Court for the Western District of Texas
- U.S. District Court for the Southern District of New York
- U.S. District Court for the Eastern District of New York
Clerkships
- Honorable Richard M. Berman, United States District Judge, Southern District of New York
- Honorable Mark D. Fox, United States Magistrate Judge, Southern District of New York
News & Insights
-
02.26.26
Attorney-Client Privilege in AI Conversations: What Companies, Executives and Investors Need to Know
%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EBy%3C%2Fspan%3E+%3Ca+href%3D%22https%3A%2F%2Fmcllp.com%2Fpeople%2Fmichael-r-huttenlocher%2F%22%3EMichael+R.+Huttenlocher%3C%2Fa%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%2C%3C%2Fspan%3E+%3Ca+href%3D%22https%3A%2F%2Fmcllp.com%2Fpeople%2Flewis-zirogiannis-pc%2F%22%3ELewis+Zirogiannis%2C+P.C.%3C%2Fa%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%2C%3C%2Fspan%3E+%3Ca+href%3D%22https%3A%2F%2Fmcllp.com%2Fpeople%2Fyoav-gaffney%2F%22%3EYoav+Gaffney%3C%2Fa%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%2C%3C%2Fspan%3E+%3Ca+href%3D%22https%3A%2F%2Fmcllp.com%2Fpeople%2Fthomas-f-li%2F%22%3EThomas+F.+Li%3C%2Fa%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E+and%3C%2Fspan%3E+%3Ca+href%3D%22https%3A%2F%2Fmcllp.com%2Fpeople%2Fabigail-blaker%2F%22%3EAbigail+Blaker%3C%2Fa%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3ECompanies%2C+executives+and+investors+increasingly+rely+on+AI+tools+to+draft+correspondence%2C+summarize+key+materials%2C+support+decision-making+and+prepare+for+discussions+with+counsel.+While+using+AI+is+not+inherently+problematic%2C+the+scope+of+attorney-client+privilege+and+work+product+protections+for+AI-related+exchanges+remains+unsettled.+Two%C2%A0recent+decisions%E2%80%94%3Cem%3EUnited+States+v.+Heppner+%3C%2Fem%3E%28%E2%80%9C%3Cem%3EHeppner%3C%2Fem%3E%E2%80%9D%29+from+the+Southern+District+of+New+York+and+%3Cem%3EWarner+v.+Gilbarco%2C+Inc.+%3C%2Fem%3E%28%E2%80%9C%3Cem%3EGilbarco%3C%2Fem%3E%E2%80%9D%29%2C+from+the+Eastern+District+of+Michigan%E2%80%94illustrate+how+these+protections+may+apply+depending+on+different+circumstances.+Although+these+rulings+reached+different+outcomes%2C+they+underscore+the+same+practical+lesson%3A+using+AI+tools+in+legal+workflows+may+pose+risks+unless+specific+safeguards+are+in+place.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3E%3Cstrong%3EBackground%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3E%3Cem%3E%3Cu%3EHeppner%3C%2Fu%3E%3C%2Fem%3E%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EAfter+learning+he+was+the+target+of+a+federal+criminal+investigation%2C+Bradley+Heppner+used+Anthropic%E2%80%99s+AI+platform+Claude+to+prepare+a+defense+for+his+potential+indictment+and+litigation.+Without+direction+from+his+attorneys%2C+Heppner+input+information+his+attorneys+had+shared+with+him+into+Claude+and+engaged+in+several+exchanges+with+the+tool%2C+generating+approximately+31+documents+outlining+potential+defense+strategies+and+Heppner%E2%80%99s+view+of+the+facts+and+law.+He+then+shared+Claude%E2%80%99s+outputs+with+his+defense+counsel.+When+the+FBI+seized+the+documents+during+Heppner%E2%80%99s+arrest%2C+his+counsel+asserted+attorney-client+privilege+and+work+product+protection+over+the+Claude+exchanges.+The+Government+moved+for+a+ruling+that+neither+protection+applied.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3E%3Cem%3E%3Cu%3EGilbarco%3C%2Fu%3E%3C%2Fem%3E%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EIn+an+employment+discrimination+case%2C+%3Cem%3Epro+se+%3C%2Fem%3Eplaintiff+Sohyon+Warner+used+OpenAI%E2%80%99s+ChatGPT+to+draft+filings+and+analyze+legal+questions.+The+defendants+moved+to+compel+production+of+all+AI-related+materials%2C+arguing+that+the+plaintiff+waived+work+product+protection+by+disclosing+the+materials+to+a+third-party+platform.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3E%3Cstrong%3EThe+Court%E2%80%99s+Holdings%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3E%3Cem%3E%3Cu%3EHeppner%3A+%3C%2Fu%3E%3C%2Fem%3E%3C%2Fstrong%3E%3Cstrong%3E%3Cu%3ENo+Protection%3C%2Fu%3E%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EOn+February+17%2C+2026%2C+Judge+Rakoff+held+that+Heppner%E2%80%99s+exchanges+with+Claude%E2%80%94a+publicly+available+AI+platform+that+permits+third-party+disclosure+of+user+inputs%E2%80%94were+not+protected+by+the+attorney-client+privilege+or+the+work+product+doctrine.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EThe+Court+rejected+Heppner%E2%80%99s+attorney-client+privilege+claim+on+multiple+grounds.+First%2C+Claude+is+not+an+attorney+and+discussions+of+legal+issues+between+non-attorneys+receive+no+protection.+Second%2C+Heppner%E2%80%99s+communications+with+Claude+were+not+confidential.+The+Court+emphasized+that+Anthropic%E2%80%99s+privacy+policy+explicitly+permits+the+company+to+collect+user+inputs+and+outputs%2C+use+that+data+for+AI+training+and+disclose+it+to+third+parties%2C+including+government+authorities%2C+thereby+removing+any+reasonable+expectation+of+confidentiality%2C+even+with+respect+to+information+Heppner+had+originally+received+from+counsel.+Third%2C+Heppner+did+not+communicate+with+Claude+to+obtain+legal+advice%3B+although+Heppner+later+forwarded+the+documents+to+his+counsel%2C+that+did+not+retroactively+protect+them+from+disclosure.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EThe+Court+also+rejected+Heppner%E2%80%99s+work+product+claim.+The+work+product+doctrine+protects+materials+prepared+by+or+at+the+direction+of+counsel+in+anticipation+of+litigation.+Here%2C+Heppner+prepared+the+AI+documents+of+his+own+volition%2C+and+although+Heppner+had+input+information+he+received+from+counsel%2C+the+documents+did+not+reflect+counsel%E2%80%99s+strategy+at+the+time+Heppner+generated+them.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3E%3Cem%3E%3Cu%3EGilbarco%3C%2Fu%3E%3C%2Fem%3E%3C%2Fstrong%3E%3Cstrong%3E%3Cu%3E%3A+Work+Product+Protection+Applies%3C%2Fu%3E%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EOn+February+10%2C+2026%2C+Magistrate+Judge+Patti+held+that+Warner%E2%80%99s+exchanges+with+ChatGPT+were+protected+by+the+work+product+doctrine.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EThe+Court+explained+that+Warner%2C+who+was+self-represented%2C+was+using+ChatGPT+to+prepare+legal+filings+and+that+her+exchanges+reflected+her+legal+strategy.+Moreover%2C+disclosure+to+ChatGPT+had+not+waived+the+protection%3A+the+court+explained+that+work+product+protection+%26%238220%3Bis+waived+only+when+documents+are+used+in+a+manner+contrary+to+the+doctrine%26%238217%3Bs+purpose%2C%26%238221%3B+specifically+by+disclosure+%26%238220%3B%3Cem%3Eto+an+adversary%3C%2Fem%3E+or+in+a+way+likely+to+get+in+an+adversary%26%238217%3Bs+hand.%26%238221%3B+According+to+the+Court%2C+generative+AI+tools+%26%238220%3Bare+%3Cem%3Etools%2C+not+persons%3C%2Fem%3E%2C+even+if+they+may+have+administrators+somewhere+in+the+background%2C%26%238221%3B+and+regardless%2C+Warner%E2%80%99s+disclosure+to+ChatGPT+was+not+likely+to+result+in+disclosure+to+Gilbarco+in+ordinary+circumstances.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3E%3Cu%3EReconciling+the+Two+Decisions%3C%2Fu%3E%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EAlthough+the+two+cases+reach+different+outcomes%2C+they+are+not+necessarily+inconsistent.+The+%3Cem%3Epro+se+%3C%2Fem%3Efooting+in+%3Cem%3EGilbarco+%3C%2Fem%3Emeaningfully+shaped+the+analysis%3A+because+the+plaintiff+represented+herself%2C+her+AI+exchanges+reflected+her+own+mental+processes+and+case+strategy.+By+contrast%2C+the+%3Cem%3EHeppner+%3C%2Fem%3Ecourt+emphasized+that+Heppner%E2%80%99s+exchanges+did+%3Cu%3Enot%3C%2Fu%3E+reflect+his+counsel%E2%80%99s+strategy+and+the+AI+platform+Heppner+used+permitted+disclosure+to+the+government%E2%80%94Heppner%E2%80%99s+actual+adversary.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3E%3Cstrong%3EImplications+for+Companies%2C+Executives%2C+and+Investors%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3ECompanies%2C+executives%2C+and+investors+increasingly+use+AI+to+support+core+workflows%2C+including+legal%3A+negotiating+agreements%2C+managing+compliance+matters%2C+assessing+potential+risks+and+liabilities%2C+responding+to+regulatory+inquiries+and+preparing+for+litigation.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EThese+decisions+carry+several+key+lessons.+First%2C+using+generative+AI+in+legal+workflows+should+be+limited+to+platforms+with+strong+confidentiality+protections%2C+typically+enterprise+deployments.+The+ruling+in+%3Cem%3EHeppner%3C%2Fem%3E%C2%A0is+limited+to+AI+platforms+whose+terms+permit+data+collection+and+third-party+disclosure%2C+including+government+authorities.+Second%2C+AI-generated+material+intended+for+use+in+litigation+should+be+prepared+at+counsel%E2%80%99s+direction.+Heppner%E2%80%99s+decision+to+act+independently+was+fatal+to+his+attorney-client+privilege+and+work+product+claims%3B+represented+parties+should+ensure+AI+use+occurs+within+the+attorney-client+relationship.+Third%2C+the+law+continues+to+evolve.+%3Cem%3EHeppner+%3C%2Fem%3Eattracted+significant+attention%2C+but+%3Cem%3EGilbarco+%3C%2Fem%3Eshows+courts+may+take+different+approaches+to+different+sets+of+facts.+Accordingly%2C+businesses+should+monitor+developments+and+consult+counsel+when+developing+AI+policies%E2%80%94and%2C+while+the+law+develops%2C+we+recommend+adopting+a+cautious+approach.+Consider+at+least+the+following+steps%3A%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3E%3Cstrong%3EPractical+Steps+for+Companies%2C+Executives+and+Investors+for+Using+AI+in+Legal+Workflows%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Col%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EKeep+privileged+materials+out+of+AI+platforms.%3C%2Fstrong%3E+Do+not+input+legal+documents+or+memos%2C+attorney+emails%2C+or+counsel%26%238217%3Bs+advice+into+non-enterprise+AI+platforms.%3C%2Fspan%3E%3C%2Fli%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EUse+enterprise+AI+with+meaningful+protections.%3C%2Fstrong%3E+Review+privacy+policies+for+data+sharing%2C+training+use+and+disclosure+to+authorities%2C+and+require+contractual+commitments+prohibiting+training+on+user+data+and+third-party+disclosure.+Merely+toggling+off+AI+training+options+is+helpful+but+may+not+be+adequate.%3C%2Fspan%3E%3C%2Fli%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EUse+consumer-facing+AI+tools+sparingly.%3C%2Fstrong%3E+Treat+non-enterprise+AI+as+a+third+party.+Anything+you+input+and+any+output+you+receive+may+be+produced+in+litigation+or+in+response+to+regulatory+inquiries.%3C%2Fspan%3E%3C%2Fli%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EBan+AI+notetakers+from+privileged+meetings.%3C%2Fstrong%3E+Do+not+use+AI+transcription+on+calls+with+counsel+or+internal+discussions+of+legal+advice.%3C%2Fspan%3E%3C%2Fli%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EInvolve+counsel+early.%3C%2Fstrong%3E+When+disputes%2C+investigations%2C+or+regulatory+matters+arise%2C+use+of+AI+should+only+be+at+counsel%26%238217%3Bs+direction%E2%80%94not+independently+undertaken%E2%80%94to+preserve+attorney-client+privilege+and+work+product+protection.%3C%2Fspan%3E%3C%2Fli%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3ETrain+broadly.%3C%2Fstrong%3E+AI+policies+should+reach+board+members%2C+executives+and+employees%2C+not+just+in-house+counsel.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Fol%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3E%3Cstrong%3EConclusion%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EGenerative+AI+is+transforming+how+companies+and+investors+operate.+%3Cem%3EHeppner%3C%2Fem%3E+and+%3Cem%3EGilbarco+%3C%2Fem%3Edemonstrate+that+longstanding+legal+doctrines+continue+to+apply+to+new+technologies+and+that+privilege+and+work+product+determinations+will+often+turn+on+fact-specific+considerations.+These+decisions+do+not+mean+businesses+should+stop+using+AI.+But+businesses+should+be+smart+and+intentional+in+how+they+use+AI%2C+with+special+attention+paid+when+legal+issues+are+involved.%3C%2Fspan%3E%3C%2Fp%3E%0A02.11.26DOJ Fraud Section Year in Review 2025: What Private Equity Sponsors and Their Portfolio Companies Should Know
%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3Eby+%3Ca+href%3D%22https%3A%2F%2Fmcllp.com%2Fpeople%2Flewis-zirogiannis-pc%2F%22%3ELewis+Zirogiannis%2C+P.C.%3C%2Fa%3E%2C+%3Ca+href%3D%22https%3A%2F%2Fmcllp.com%2Fpeople%2Fmichael-r-huttenlocher%2F%22%3EMichael+R.+Huttenlocher%3C%2Fa%3E%2C+%3Ca+href%3D%22https%3A%2F%2Fmcllp.com%2Fpeople%2Fjoyce-cowan%2F%22%3EJoyce+Cowan%3C%2Fa%3E%2C+%3Ca+href%3D%22https%3A%2F%2Fmcllp.com%2Fpeople%2Fmatthew-smith%2F%22%3EMatthew+Smith%3C%2Fa%3E+and+%3Ca+href%3D%22https%3A%2F%2Fmcllp.com%2Fpeople%2Fyoav-gaffney%2F%22%3EYoav+Gaffney%3C%2Fa%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3EI.%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0+Introduction%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EIn+January+2026%2C+the+Department+of+Justice+Criminal+Division%E2%80%99s+Fraud+Section+released+its+Year+in+Review+for+2025%2C+a+document+worth+reviewing+for+private+equity+sponsors+and+their+portfolio+companies+across+a+range+of+industries.%C2%A0+The+2025+report+reflects+a+significant+expansion+of+both+the+Fraud+Section%E2%80%99s+mandate+and+resources.+%C2%A0The+Fraud+Section+now+has+more+than+200+attorneys%E2%80%94the+largest+in+its+history%E2%80%94and+has+assumed+the+criminal+portfolio+and+personnel+of+the+former+Consumer+Protection+Branch%2C+uniting+expertise+in+its+effort+to+more+comprehensively+protect+the+American+public.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EThe+numbers+tell+an+interesting+story%3A+the+Fraud+Section+charged+265+defendants+in+2025+%28an+over+10%25+increase+from+the+prior+year%29%2C+with+aggregate+intended+fraud+loss+exceeding+%2416+billion%E2%80%94a+record+and+more+than+double+2024%E2%80%99s+total.%C2%A0+Corporate+accountability+remained+a+central+pillar+of+the+Section%E2%80%99s+work%2C+resulting+in+15+corporate+enforcement+actions%2C+including+12+corporate+resolutions+and+3+corporate+indictments.%C2%A0+These+cases+resulted+in+combined+resolution+amounts+of+approximately+%241+billion.%C2%A0+Notably%2C+for+the+first+time+in+over+15+years%2C+the+Fraud+Section+indicted+corporate+entities+for+criminal+activity%2C+signaling+an+evolving+enforcement+approach.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EFor+private+equity+sponsors+and+portfolio+company+leadership+teams%2C+this+report+offers+a+useful+window+into+where+the+DOJ+is+focusing+its+attention.+%C2%A0Understanding+these+priorities+can+help+inform+investment+decisions%2C+due+diligence+practices%2C+compliance+planning%2C+and+risk+management+discussions+at+both+the+sponsor+and+portfolio+company+levels.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3EII.%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0+Where+the+DOJ+Is+Focusing%3A+2025+Enforcement+Priorities%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EThe+2025+Year+in+Review+identifies+several+key+enforcement+priorities+across+the+Fraud+Section%26%238217%3Bs+four+litigating+units+which+are+worth+keeping+on+your+radar%3A%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EForeign+Corrupt+Practices+Act+%28FCPA%29+and+Anti-Bribery+Enforcement.%3C%2Fstrong%3E+The+FCPA+Unit%2C+composed+of+over+20+prosecutors%2C+is+responsible+for+investigating+and+prosecuting+violations+of+the+FCPA+and+the+Foreign+Extortion+Prevention+Act+%28FEPA%29.+In+June+2025%2C+the+Deputy+Attorney+General+issued+new+Guidelines+for+FCPA+enforcement%2C+highlighting+four+non-exhaustive+priority+areas%3A+%281%29+investigation+and+prosecution+of+foreign+bribery+conduct+that+facilitates+the+operations+of+cartels+and+transnational+criminal+organizations%3B+%282%29+conduct+that+deprives+U.S.+companies+of+fair+opportunities+to+compete%3B+%283%29+conduct+that+undermines+U.S.+national+security+interests%3B+and+%284%29%C2%A0conduct+involving+substantial+bribe+payments+and+efforts+to+conceal+criminal+schemes.%C2%A0+The+Fraud+Section+brought+three+corporate+enforcement+actions+under+the+FCPA+in+2025%2C+including+the+first+corporate+indictment+in+15+years+against+SGO+Corporation+%28Smartmatic%29+for+alleged+bribery+and+money+laundering+in+connection+with+Philippine+election+contracts.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EHealth+Care+Fraud.%3C%2Fstrong%3E+The+Health+Care+Fraud+%28HCF%29+Unit+had+a+record-setting+year%2C+leading+the+largest+coordinated+nationwide+effort+to+combat+and+deter+health+care+fraud+in+the+Department%E2%80%99s+history.+In+June+2025%2C+the+Department+charged+324+individuals%E2%80%94including+96+licensed+medical+professionals%E2%80%94across+50+federal+districts+and+12+state+jurisdictions%2C+with+alleged+losses+exceeding+%2414.6+billion.%C2%A0+The+report+states+that+ongoing+health+care+fraud+enforcement+priorities+include%3A+protecting+the+public+fisc+through+seizure+and+forfeiture%3B+targeting+foreign+actors%3B+addressing+addiction+rehabilitation+fraud%3B+tackling+prescription+drug+abuse%3B+and+pursuing+corporate+enforcement.+%C2%A0Health+care+sectors+with+specific+enforcement+initiatives+include+wound+care%2C+digital+health+technology%2C+substance+abuse+treatment+providers+and+telemedicine+providers.+%C2%A0Additionally%2C+an+NPA+with+Troy+Health%2C+Inc.%2C+a+Medicare+Advantage+plan+accused+of+enrolling+beneficiaries+without+their+consent%2C+shows+continued+interest+in+Medicare+Advantage+fraud.+%C2%A0In+2025%2C+the+HCF+Unit+seized+more+than+%24568+million+in+assets%2C+the+Centers+for+Medicare+and+Medicaid+Services+%28CMS%29+prevented+more+than+%244+billion+in+fraudulent+payments%2C+and+CMS+suspended+the+billing+privileges+of+205+providers.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EHealth+and+Safety+Enforcement.%3C%2Fstrong%3E+The+newly+formed+Health+and+Safety+Unit+%28HSU%29+focuses+on+ensuring+products+distributed+to+consumers+meet+legal+obligations.+The+HSU+criminally+enforces+the+Federal+Food%2C+Drug%2C+and+Cosmetic+Act+%28FDCA%29%2C+pursuing+offenses+involving+food%2C+prescription+medications%2C+counterfeit+pills%2C+medical+devices%2C+dietary+supplements%2C+and+tobacco.%C2%A0+The+HSU+also+brings+criminal+enforcement+actions+under+the+Consumer+Product+Safety+Act+and+the+Federal+Hazardous+Substances+Act%2C+targeting+dangerous+products+and+the+knowing+failure+by+companies+or+individuals+to+report+defects+or+hazards+presenting+unreasonable+risk+of+death+or+injury+to+consumers.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EMarket%2C+Government%2C+and+Consumer+Fraud.%3C%2Fstrong%3E+The+Market%2C+Government%2C+and+Consumer+Fraud+%28MGC%29+Unit+prosecutes%3A+%281%29+fraud+and+manipulation+harming+U.S.+markets+and+investors%3B+%282%29+schemes+to+defraud+government+programs%2C+evade+tariffs%2C+and+procure+government+contracts+fraudulently%3B+and+%283%29+complex+consumer+fraud+targeting+Americans.+In+2025%2C+the+MGC+Unit+expanded+its+mandate+through+integration+of+the+former+Consumer+Protection+Branch%2C+adding+over+20+consumer+fraud+prosecutors.%C2%A0+Priority+areas+include%3A+securities+fraud+schemes+involving+foreign+issuers+and+variable+interest+entities+%28VIEs%29%3B+trade+and+tariff+fraud%3B+procurement+fraud%3B+and+consumer+investment+scams.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3ETrade+Fraud+Task+Force.%3C%2Fstrong%3E+The+MGC+Unit+is+now+part+of+the+cross-agency+Trade+Fraud+Task+Force%2C+which+pursues+enforcement+actions+against+parties+who+seek+to+evade+tariffs+and+other+duties%2C+as+well+as+smugglers+importing+prohibited+goods.+The+MGC+Unit+brought+its+first+corporate+and+individual+trade+fraud+case+in+2025.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3EIII.%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0+What+This+Means+for+Private+Equity+Sponsors+and+Portfolio+Companies%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EThe+2025+Year+in+Review+offers+several+practical+takeaways+for+private+equity+sponsors+and+their+portfolio+companies%3A%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3ECorporate+Liability+and+Indictments%3C%2Fstrong%3E.+One+notable+development+is+the+Fraud+Section%E2%80%99s+renewed+willingness+to+indict+corporate+entities%2C+as+evidenced+by+the+first+corporate+indictments+in+over+15+years.+This+marks+a+departure+from+the+Section%E2%80%99s+traditional+exclusive+reliance+on+Deferred+Prosecution+Agreements+%28DPAs%29+and+Non-Prosecution+Agreements+%28NPAs%29.+%C2%A0This+is+a+shift+worth+noting%3A+the+DOJ+appears+more+willing+to+bring+criminal+charges+against+companies%2C+not+just+individuals%2C+in+appropriate+circumstances.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EIndustry-Specific+Considerations%3C%2Fstrong%3E.+Portfolio+companies+in+certain+sectors+may+want+to+pay+particular+attention+to+these+developments%3A%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EHealthcare%3C%2Fstrong%3E%3A+The+HCF+Unit%E2%80%99s+active+enforcement+year+is+particularly+relevant+for+healthcare+portfolio+companies.+In+addition+to+the+June+Takedown%2C+the+Unit+indicted+two+corporate+defendants+and+resolved+allegations+with+two+others+in+2025%E2%80%94its+first+such+resolutions+in+nearly+a+decade.+Portfolio+companies+providing+skilled+nursing+facilities%2C+telemedicine%2C+durable+medical+equipment%2C+addiction+treatment%2C+pharmaceutical+distribution%2C+Medicare+Advantage+plans+or+services%2C+and+wound+care+may+see+continued+attention.+%C2%A0The+prosecution+of+KBWB+Operations+LLC+%28Atrium+Health+and+Senior+Living%29%2C+which+operated+23+skilled+nursing+facilities+and+resulted+in+a+guilty+plea%2C+%24146+million+in+restitution%2C+and+%248.4+million+in+forfeiture%2C+provides+a+concrete+example+of+the+types+of+cases+the+DOJ+is+pursuing.+%C2%A0An+HCF+Data+Fusion+Center+is+being+created+to+leverage+cloud+computing%2C+artificial+intelligence%2C+and+advanced+analytics+to+identify+emerging+healthcare+fraud+schemes.+%C2%A0The+ability+to+readily+analyze+billing+trends+within+a+subsector+may+be+of+particular+concern+to+investors+in+provider+sectors+that+bill+federal+health+care+programs+%28e.g.%2C+Medicare+and+Medicaid%29.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3ELife+Sciences+and+Medical+Devices%3C%2Fstrong%3E%3A+The+Kimberly-Clark+Corporation+resolution+illustrates+the+DOJ%26%238217%3Bs+continued+attention+to+medical+device+companies.+Kimberly-Clark+entered+a+DPA+and+agreed+to+pay+up+to+%2440.4+million+to+resolve+charges+stemming+from+the+sale+of+adulterated+surgical+gowns+that+failed+to+meet+required+fluid-resistance+standards.%C2%A0+The+Aesculap+Implant+Systems+NPA+involving+forged+FDA+documents+and+the+illegal+introduction+of+medical+devices+into+interstate+commerce+is+another+corporate+example+in+this+space.+%C2%A0As+in+healthcare%2C+the+DOJ+also+pursued+individual+violators+in+this+space+in+2025.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EConsumer+Products+and+Manufacturing%3C%2Fstrong%3E%3A+The+integration+of+the+Consumer+Protection+Branch+into+the+Fraud+Section+expands+enforcement+capacity+for+violations+involving+consumer+product+safety%2C+hazardous+substances%2C+and+import+fraud.+The+HSU+will+pursue+companies+that+fail+to+report+defects+or+hazards+posing+unreasonable+risk+of+death+or+injury.%C2%A0+The+prosecution+of+Royal+Sovereign+for+fire+hazard+defects+in+dehumidifiers+and+failure+to+report+those+hazards+is+a+useful+case+study+for+companies+thinking+about+product+safety+compliance.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EInternational+Operations%3C%2Fstrong%3E%3A+Portfolio+companies+with+international+operations%2C+particularly+those+doing+business+with+or+through+foreign+governments%2C+will+want+to+keep+FCPA+compliance+top+of+mind.+The+TIGO+Guatemala+resolution%E2%80%94in+which+the+telecommunications+company+agreed+to+pay+over+%24118+million+in+connection+with+bribery+of+Guatemalan+government+officials%E2%80%94demonstrates+that+subsidiaries+of+international+companies+remain+enforcement+targets.%C2%A0+The+Liberty+Mutual+declination+shows+that+voluntary+self-disclosure%2C+full+cooperation%2C+and+timely+remediation+may+result+in+favorable+outcomes.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EGovernment+Contractors%3C%2Fstrong%3E%3A+Portfolio+companies+with+federal+contracts+should+be+aware+of+continued+procurement+fraud+enforcement.+The+Vistant+and+Apprio+corporate+resolutions%2C+arising+from+a+decade-long+bribery+scheme+involving+a+USAID+contracting+officer+and+over+%24550+million+in+prime+contracts%2C+highlight+the+importance+of+robust+controls+in+this+area.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3ECompliance+Program+Expectations%3C%2Fstrong%3E.+The+DOJ%E2%80%99s+Corporate+Enforcement+and+Compliance+%28CEC%29+Unit+has+responsibility+for+evaluating+corporate+compliance+programs+and+determining+whether+independent+compliance+monitors+should+be+imposed.+Last+updated+in+September+2024%2C+the+Evaluation+of+Corporate+Compliance+Programs+Guidance+%28ECCP%29+sets+forth+three+fundamental+questions+for+prosecutors%3A+%28i%29+is+the+corporation%26%238217%3Bs+compliance+program+well+designed%3F+%28ii%29+is+the+program+adequately+resourced+and+empowered+to+function+effectively%3F+and+%28iii%29+does+the+corporation%26%238217%3Bs+compliance+program+work+in+practice%3F%C2%A0+These+questions+offer+a+helpful+framework+for+sponsors+conducting+portfolio+company+reviews+and+for+GCs+and+compliance+teams+assessing+their+own+programs.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EVoluntary+Self-Disclosure+Benefits%3C%2Fstrong%3E.+The+Corporate+Enforcement+Policy+%28CEP%29+provides+significant+benefits+for+companies+that+voluntarily+self-disclose+misconduct.+In+2025%2C+the+Department+revised+the+CEP+to+describe+the+path+to+a+declination+based+on+a+timely+voluntary+self-disclosure%2C+cooperation%2C+and+remediation.+The+Liberty+Mutual+declination+illustrates+these+benefits%3A+the+company+voluntarily+self-disclosed+FCPA+violations+involving+bribes+totaling+approximately+%241.47+million+to+Indian+government+officials%2C+fully+cooperated%2C+conducted+a+thorough+root-cause+analysis%2C+separated+personnel+involved%2C+and+made+significant+compliance+improvements%E2%80%94resulting+in+a+declination+with+only+disgorgement+of+%244%2C699%2C088+rather+than+criminal+charges.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3E%C2%A0%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3ECompensation+Clawbacks+and+Incentives%3C%2Fstrong%3E.+The+Pilot+Program+on+Compensation+Incentives+and+Clawbacks+requires+companies+entering+criminal+resolutions+to+implement+and+report+on+compliance-related+criteria+in+their+compensation+and+bonus+systems+during+the+resolution+term.+This+program+also+allows+for+possible+fine+reductions+based+on+corporate+efforts+to+recoup+compensation+from+culpable+employees.%C2%A0+Private+equity+sponsors+may+want+to+discuss+these+requirements+with+compensation+committees+and+HR+leadership+at+portfolio+companies%2C+particularly+when+structuring+management+incentive+plans%2C+as+the+program+demonstrates+the+DOJ%E2%80%99s+continued+focus+on+individual+accountability.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3E%C2%A0%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EIndividual+Accountability%3C%2Fstrong%3E.+The+Pilot+Program+on+Voluntary+Self-Disclosures+for+Individuals%2C+launched+in+April+2024%2C+details+circumstances+in+which+the+Department+will+offer+non-prosecution+agreements+to+individuals+who+voluntarily+disclose+original+information+about+certain+criminal+conduct+involving+corporations%2C+fully+cooperate%2C+and+pay+applicable+restitution+or+disgorgement.+This+program+is+worth+understanding%2C+as+it+may+encourage+employees+with+knowledge+of+misconduct+to+come+forward.+%C2%A0Strong+internal+reporting+channels+can+help+ensure+issues+are+identified+and+addressed+internally+first.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3E%C2%A0%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EMonitor+and+Reporting+Obligations%3C%2Fstrong%3E.+The+DOJ+reported+39+active+resolutions+with+Fraud+Section-imposed+reporting+obligations+in+2025%2C+with+33+corporate+entities+under+self-reporting+requirements+and+6+under+independent+monitorships.+The+May+2025+Revised+Memorandum+on+Selection+of+Monitors+clarified+factors+prosecutors+must+consider+when+determining+whether+a+monitor+is+appropriate+and+how+to+tailor+the+scope+of+a+monitor%26%238217%3Bs+review.%C2%A0+For+companies+that+do+find+themselves+in+a+resolution%2C+these+ongoing+obligations+are+worth+factoring+into+planning.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3EIV.%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0+Practical+Considerations+Going+Forward%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EGiven+these+developments%2C+private+equity+sponsors+and+portfolio+company+senior+management+teams+may+want+to+consider%3A%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EPre-Acquisition+Due+Diligence%3C%2Fstrong%3E.+For+private+equity+sponsors+evaluating+potential+investments%2C+the+DOJ%E2%80%99s+enforcement+priorities+provide+useful+guidance+in+evaluating+investment+decisions+and+shaping+due+diligence+protocols+around+potential+compliance+risks.+Particular+focus+should+be+placed+on+compliance+with+the+FCPA%2C+trade+sanctions%2C+health+care+fraud+and+abuse+laws%2C+FDA+regulations%2C+consumer+product+safety+requirements%2C+and+tariff+obligations.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EPortfolio+Company+Compliance+Assessments%3C%2Fstrong%3E.+Private+equity+sponsors+may+want+to+consider+conducting+periodic+compliance+assessments+across+their+portfolio.+The+ECCP+framework+offers+a+useful+benchmark+for+these+reviews+as+well+as+for+GCs+looking+to+assess+the+strength+of+their+programs.%C2%A0+This+assessment+should+include+evaluation+of+program+design%2C+adequacy+of+resources+and+empowerment%2C+and+real-world+effectiveness.+%C2%A0Special+attention+should+be+paid+to+companies+operating+in+the+priority+enforcement+areas+identified+in+the+2025+report%3A+health+care%2C+life+sciences%2C+consumer+products%2C+government+contracting%2C+and+businesses+with+international+operations.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EVoluntary+Self-Disclosure+Assessment+and+Readiness%3C%2Fstrong%3E.+The+revised+CEP%E2%80%99s+emphasis+on+voluntary+self-disclosure+as+the+path+to+declination+is+worth+understanding%2C+particularly+for+companies+thinking+about+how+they+would+respond+if+potential+misconduct+were+identified.+Companies+benefit+from+having+clear+internal+reporting+mechanisms%2C+investigation+protocols%2C+and+decision+frameworks+for+evaluating+whether+voluntary+self-disclosure+is+appropriate+when+potential+misconduct+is+identified.+%C2%A0The+Liberty+Mutual+outcome+demonstrates+the+benefits+of+timely+disclosure%2C+full+cooperation%2C+and+appropriate+remediation.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3ECompensation+and+Clawback+Provisions%3C%2Fstrong%3E.+The+DOJ%E2%80%99s+Pilot+Program+on+Compensation+Incentives+and+Clawbacks+is+worth+considering+when+private+equity+sponsors+and+portfolio+company+boards+review+executive+compensation+arrangements.+Incorporating+compliance-related+criteria+and+clawback+provisions+may+be+worthwhile.%C2%A0+Such+provisions+may+also+provide+fine+reduction+benefits+in+the+event+of+a+resolution.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EInternational+Operations+Review%3C%2Fstrong%3E.+Portfolio+companies+with+international+operations%2C+particularly+those+involving+government+customers+or+operating+in+higher-risk+jurisdictions%2C+may+benefit+from+periodic+FCPA+and+anti-bribery+compliance+reviews.+The+FCPA+Guidelines%E2%80%99+focus+on+conduct+involving+cartels+and+transnational+criminal+organizations%2C+unfair+competitive+advantages%2C+national+security+implications%2C+and+substantial+bribe+payments+can+help+inform+risk+assessment+priorities.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EProduct+Safety+and+Regulatory+Compliance%3C%2Fstrong%3E.+For+portfolio+companies+manufacturing+or+distributing+consumer+products%2C+medical+devices%2C+pharmaceuticals%2C+or+food+products%2C+this+is+a+good+time+to+review+product+safety+compliance+programs%2C+including+defect+reporting+obligations+under+the+Consumer+Product+Safety+Act+and+FDA+regulations.+The+HSU%E2%80%99s+focus+on+knowing+failures+to+report+defects+or+hazards+underscores+the+importance+of+timely+reporting+and+remediation.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3ETrade+Compliance+Programs%3C%2Fstrong%3E.+With+the+establishment+of+the+Trade+Fraud+Task+Force+and+the+MGC+Unit%26%238217%3Bs+first+trade+fraud+case+in+2025%2C+companies+engaged+in+international+trade+may+want+to+take+a+fresh+look+at+tariff+and+customs+compliance+programs.+This+is+particularly+important+given+current+trade+policy+developments+and+heightened+tariff+enforcement.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EOngoing+Monitoring+and+Board+Reporting%3C%2Fstrong%3E.+Regular+monitoring+and+board-level+reporting+on+compliance+matters+remains+a+best+practice.+The+DOJ%E2%80%99s+oversight+of+39+active+resolutions+with+reporting+obligations+is+a+reminder+that+compliance+is+an+ongoing+commitment%2C+not+a+one-time+exercise.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3EV.%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0+Conclusion%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EThe+DOJ+Fraud+Section%26%238217%3Bs+2025+Year+in+Review+reflects+an+active+and+evolving+enforcement+environment.+%C2%A0The+record-setting+activity%2C+expansion+into+new+areas+like+consumer+protection+and+trade+fraud%2C+and+renewed+willingness+to+indict+corporations+all+suggest+that+compliance+deserves+continued+attention+at+the+board+and+management+level.+%C2%A0For+private+equity+sponsors+and+portfolio+company+senior+management%2C+the+report+offers+helpful+insight+into+the+DOJ%E2%80%99s+current+thinking+and+priorities%E2%80%94information+that+can+inform+thoughtful+investment+decisions%2C+compliance+planning%2C+and+risk+management.+%C2%A0We+are+happy+to+discuss+any+of+these+developments+in+more+detail+and+how+they+may+relate+to+your+specific+situation.%3C%2Fspan%3E%3C%2Fp%3E%0A11.19.25Consero: Corporate Litigation & Investigations Forum
%3Cp%3ENovember+19%E2%80%9321%2C+2025%3C%2Fp%3E%0A%3Cp%3EThe+Biltmore+Miami%2C+Coral+Gables%2C+FL%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EMassumi+%2B+Consoli+was+proud+to+sponsor+the+Consero+Corporate+Litigation+%26amp%3B+Investigations+Forum+in+Miami.+Our+Litigation+partners%2C%3C%2Fspan%3E+%3Ca+href%3D%22https%3A%2F%2Fmcllp.com%2Fpeople%2Fmichael-r-huttenlocher%2F%22%3EMichael+Huttenlocher%3C%2Fa%3E+%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3Eand%3C%2Fspan%3E+%3Ca+href%3D%22https%3A%2F%2Fmcllp.com%2Fpeople%2Flewis-zirogiannis-pc%2F%22%3ELewis+Zirogiannis%3C%2Fa%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%2C+led+the+Forum%E2%80%99s+inaugural+Tabletop+Talks+sessions+on+%E2%80%9CTransactional+Litigation%3A+Mitigating+Risks+in+Corporate+Deals+and+Disputes%E2%80%9D+and+%E2%80%9CWhite+Collar+Crime+in+Focus%3A+Emerging+Trends+and+FCPA+Enforcement.%E2%80%9D+Both+sessions+offered+practical+perspectives+on+emerging+risks%2C+evolving+enforcement+trends+and+challenges+facing+today%E2%80%99s+in-house+legal+teams.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EDuring+the+transactional+litigation+discussion%2C+in-house+counsel+highlighted+several+themes+that+continue+to+shape+deal+execution+and+dispute+strategy.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EMany+legal+teams+are+actively+exploring+ways+to+incorporate+AI+into+their+workflows+but+remain+cautious+about+protecting+privilege+and+maintaining+the+confidentiality+of+sensitive+company+data.%3C%2Fspan%3E%3C%2Fli%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EParticipants+also+noted+the+growing+complexity+of+regulatory+compliance%2C+particularly+for+companies+with+operations+in+California%2C+which+is+often+described+as+navigating+%E2%80%9CCalifornia+vs.+49+other+states.%E2%80%9D%3C%2Fspan%3E%3C%2Fli%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3ELitigation+cost+management+was+another+recurring+topic%2C+with+attendees+emphasizing+the+importance+of+transparency+and+open+communication+to+support+effective+partnership+between+internal+teams+and+outside+counsel.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EThe+white+collar+and+FCPA+session+underscored+the+renewed+momentum+in+enforcement+activity.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EFCPA+enforcement+activity+is+reaccelerating%2C+with+DOJ+signaling+a+strengthened+focus+on+individual+accountability%2C+recidivist+scrutiny+and+heightened+expectations+around+compliance+controls+across+global+operations.+Early+internal+response+and+disciplined+fact+development+remain+essential%2C+though+companies+may+need+to+reassess+voluntary+disclosure+strategies+in+light+of+recent+developments%2C+including+the+DOJ%E2%80%99s+Corporate+Enforcement+Policy+and+the+%3Cem%3ELiberty+Mutual%3C%2Fem%3E+FCPA+declination+%28August+2025%29.%3C%2Fspan%3E%3C%2Fli%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EAttendees+also+discussed+the+increasing+scrutiny+around+attorney-client+privilege+and+work+product+protections+in+internal+investigations.+The+Sixth+Circuit%E2%80%99s+decision+in+%3Cem%3EIn+re+FirstEnergy+Corp.%3C%2Fem%3E%2C+No.+24-3654+%286th+Cir.+Oct.+3%2C+2025%29%2C+narrowed+privilege+where+investigative+communications+lacked+sufficient+independence+or+blurred+roles+among+management%2C+the+board+and+outside+counsel.+The+case+highlights+the+importance+of+structuring+investigations+with+clear+oversight%2C+defined+roles+and+disciplined+communication+protocols.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EThe+conversations+throughout+the+Forum+reflected+the+rapidly+evolving+landscape+facing+corporate+legal+departments.+As+regulatory+demands+increase+and+enforcement+expectations+intensify%2C+organizations+are+navigating+more+complex+investigations%2C+heightened+compliance+obligations+and+ongoing+pressure+to+manage+litigation+efficiently.%3C%2Fspan%3E%3C%2Fp%3E%0A -
11.06.25
Massumi + Consoli Named a Tier 1 Law Firm in Dallas/Forth Worth for Commercial Litigation in the 2026 Edition of Best Law Firms
%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EMassumi+%2B+Consoli%2C+a+nationwide+law+firm+recognized+for+its+leading+Private+Equity+and+M%26amp%3BA+practice%2C+is+pleased+to+announce+that+it+has+been+recognized+as+a%C2%A0%3Ca+href%3D%22https%3A%2F%2Fwww.bestlawfirms.com%2Ffirms%2Fmassumi-consoli-llp%2F94279%2FUS%22+target%3D%22_blank%22+rel%3D%22noopener%22%3ETier+1+Best+Law+Firm%3C%2Fa%3E+in+Dallas%2FFort+Worth+in+the+2026+edition+of+Best+Law+Firms.+Selection+in+this+publication+is+based+on+a+rigorous+evaluation+process+that+collects+%E2%80%9Cqualitative+and+quantitative+data+on+legal+skillset%2C+achievements+and+client+successes%E2%80%9D+from+clients%2C+professional+references+and+other+attorneys+currently+recognized+as+Best+Lawyers%3Csup%3E%C2%AE%3C%2Fsup%3E.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Ca+href%3D%22https%3A%2F%2Fmcllp.com%2Fpeople%2Flewis-zirogiannis-pc%2F%22%3ELewis+Zirogiannis%3C%2Fa%3E%C2%A0%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3Ewas+previously+named+in+%3Cem%3EThe+Best+Lawyers+in+America%3Csup%3E%C2%AE+%3C%2Fsup%3E%3C%2Fem%3Eguide+for+Commercial+Litigation.%3C%2Fspan%3E%3C%2Fp%3E%0A08.28.25Massumi + Consoli Achieves Six Lawyer Rankings in the 2026 Editions of the Best Lawyers in America and Best Lawyers: Ones to Watch
%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Ca+style%3D%22color%3A+%237f7f7f%3B%22+href%3D%22https%3A%2F%2Fmcllp.com%2F%22%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3EMassumi+%2B+Consoli%3C%2Fspan%3E%3C%2Fa%3E%2C+a+nationwide+law+firm+focused+on+providing+full-service+support+to+middle+market+private+equity+firms+and+other+financial+sponsors%2C+is+pleased+to+announce+that+six+lawyers+have+been+recognized+by+their+peers+in+the+2026+editions+of+%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3E%3Ca+style%3D%22color%3A+%23be9b64%3B%22+href%3D%22https%3A%2F%2Fwww.bestlawyers.com%2Famerica%22%3E%3Cem%3EThe+Best+Lawyers+in+America%C2%AE%3C%2Fem%3E%3C%2Fa%3E%3C%2Fspan%3E+and+%3Ca+style%3D%22color%3A+%237f7f7f%3B%22+href%3D%22https%3A%2F%2Fwww.bestlawyers.com%2Fones-to-watch%22%3E%3Cem%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3EBest+Lawyers%3A+Ones+to+Watch%C2%AE%3C%2Fspan%3E%3C%2Fem%3E%3C%2Fa%3E.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3ERankings+are+determined+through+a+peer-review+process+that+aims+to+capture+leading+lawyers%E2%80%99+consensus+on+their+peers%E2%80%99+professional+abilities.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EBest+Lawyers+in+America%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3ENew+York%2C+NY%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3E%3Ca+style%3D%22color%3A+%23be9b64%3B%22+href%3D%22https%3A%2F%2Fmcllp.com%2Fpeople%2Fadeeb-fadil%2F%22%3EAdeeb+R.+Fadil%3C%2Fa%3E%3C%2Fspan%3E+%28Recognized+in+%3Cem%3EBest+Lawyers%3C%2Fem%3E%3Cem%3E%C2%AE+in+America%3C%2Fem%3E%29%3C%2Fspan%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EEnvironmental+Law%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%3Cstrong%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EDallas%2C+TX%3C%2Fspan%3E%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Ca+href%3D%22https%3A%2F%2Fmcllp.com%2Fpeople%2Flewis-zirogiannis-pc%2F%22%3ELewis+Zirogiannis%3C%2Fa%3E+%28Recognized+in+%3Cem%3EBest+Lawyers%3C%2Fem%3E%3Cem%3E%C2%AE+in+America%3C%2Fem%3E%29%3C%2Fspan%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3ECommercial+Litigation%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EBest+Lawyers%3A+Ones+to+Watch%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3ELos+Angeles%2C+CA%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3E%3Ca+style%3D%22color%3A+%23be9b64%3B%22+href%3D%22https%3A%2F%2Fmcllp.com%2Fpeople%2Fmisha-goodwin%2F%22%3EN.+Misha+Goodwin%3C%2Fa%3E%3C%2Fspan%3E+%28Recognized+in%C2%A0%3Cem%3EBest+Lawyers%3A+Ones+to+Watch%3C%2Fem%3E%3Cem%3E%C2%AE%3C%2Fem%3E%3Cem%3E+in+America%3C%2Fem%3E%29%3C%2Fspan%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3ETax+Law%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3C%2Fli%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Ca+style%3D%22color%3A+%237f7f7f%3B%22+href%3D%22https%3A%2F%2Fmcllp.com%2Fpeople%2Fjonathan-krane%2F%22%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3EJonathan+R.+Krane%3C%2Fspan%3E%3C%2Fa%3E+%28Recognized+in%C2%A0%3Cem%3EBest+Lawyers%3A+Ones+to+Watch%3C%2Fem%3E%3Cem%3E%C2%AE%3C%2Fem%3E%3Cem%3E+in+America%3C%2Fem%3E%29%3C%2Fspan%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EMergers+and+Acquisitions+Law%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3ENew+York%2C+NY%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3E%3Ca+style%3D%22color%3A+%23be9b64%3B%22+href%3D%22https%3A%2F%2Fmcllp.com%2Fpeople%2Fjames-r-morrissey%2F%22%3EJames+R.+Morrissey%3C%2Fa%3E%3C%2Fspan%3E+%28Recognized+in%C2%A0%3Cem%3EBest+Lawyers%3A+Ones+to+Watch%3C%2Fem%3E%3Cem%3E%C2%AE%3C%2Fem%3E%3Cem%3E+in+America%3C%2Fem%3E%29%3C%2Fspan%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EReal+Estate+Law%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3C%2Fli%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Ca+style%3D%22color%3A+%237f7f7f%3B%22+href%3D%22https%3A%2F%2Fmcllp.com%2Fpeople%2Fashley-rebelez%2F%22%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3EAshley+Rebelez%3C%2Fspan%3E%3C%2Fa%3E+%28Recognized+in%C2%A0%3Cem%3EBest+Lawyers%3A+Ones+to+Watch%3C%2Fem%3E%3Cem%3E%C2%AE%3C%2Fem%3E%3Cem%3E+in+America%3C%2Fem%3E%29%3C%2Fspan%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EMergers+and+Acquisitions+Law%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A06.25.25Our Recently Acquired Business Is Violating the Law—Now What?
%3Ch3%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cem%3EA+Recent+DOJ+Decision+Provides+Guidance+to+Private+Equity+Firms%3C%2Fem%3E%3C%2Fspan%3E%3C%2Fh3%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3Eby+%3Ca+href%3D%22https%3A%2F%2Fmcllp.com%2Fpeople%2Flewis-zirogiannis-pc%2F%22%3ELewis+Zirogiannis%2C+P.C.%3C%2Fa%3E+and+%3Ca+href%3D%22https%3A%2F%2Fmcllp.com%2Fpeople%2Fthomas-f-li%2F%22%3EThomas+F.+Li%3C%2Fa%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EEvery+time+a+private+equity+sponsor+acquires+a+new+business%2C+there+is+a+risk+of+uncovering+previously+unknown+information+post-closing%2C+regardless+of+how+thorough+due+diligence+was+prior+to+closing+the+transaction.+What+happens+if+a+private+equity+firm+finds+out+after+closing+that+its+newly+acquired+business+has+been+engaging+in+criminal+conduct%3F+Recent+actions+from+the+United+States+Department+of+Justice+%28DOJ%29+provide+potential+pathways+to+avoiding+criminal+charges+against+the+private+equity+firm+as+well+as+the+newly+acquired+business.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EOn+June+16%2C+2025%2C+the+DOJ%E2%80%99s+National+Security+Division+%28NSD%29+and+the+U.S.+Attorney%E2%80%99s+Office+for+the+Southern+District+of+Texas+%28SDTX%29+%28together%2C+the+Justice+Department%29+announced+that+they+%3Ca+href%3D%22https%3A%2F%2Fwww.law360.com%2Farticles%2F2354040%2Fattachments%2F0%22+target%3D%22_blank%22+rel%3D%22noopener%22%3Edeclined+to+prosecute%3C%2Fa%3E+the+private+equity+firm+White+Deer+Management+LLC+%28White+Deer%29+after+White+Deer+discovered+and+self-disclosed+U.S.+economic+sanction%2C+export+control+and+tariff+evasion+violations+committed+by+a+company+it+acquired%2C+Unicat+Catalyst+Technologies+LLC+%28Unicat%29.+As+part+of+the+resolution%2C+Unicat+entered+into+a+%3Ca+href%3D%22https%3A%2F%2Fwww.law360.com%2Farticles%2F2354040%2Fattachments%2F1%22+target%3D%22_blank%22+rel%3D%22noopener%22%3Enon-prosecution+agreement%3C%2Fa%3E+%28NPA%29.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EThis+resolution+provides+guidance+on+the+application+of+the+NSD%E2%80%99s+March+2024%3Ca+href%3D%22https%3A%2F%2Fwww.justice.gov%2Fnsd%2Fmedia%2F1285121%2Fdl%3Finline%3D%22+target%3D%22_blank%22+rel%3D%22noopener%22%3E+Enforcement+Policy+for+Business+Organizations%3C%2Fa%3E+%28NSD+Enforcement+Policy%29+and%2C+in+particular%2C+the+provisions+that+apply+to+Voluntary+Self-Disclosures+in+Connection+with+Acquisitions+%28the+NSD+M%26amp%3BA+Policy%29.+It+also+highlights+how+voluntary+and+timely+self-disclosure+by+a+private+equity+firm+of+criminal+misconduct+of+an+acquired+entity+discovered+post-closing+can+result+in+a+decision+not+to+prosecute.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EWhite+Deer+Discovery+of+Unicat%E2%80%99s+Misconduct%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EIn+June+2021%2C+after+White+Deer+had+acquired+Unicat+and+a+separate+company%2C+Unicat%E2%80%99s+new+CEO+began+a+process+of+integrating+and+merging+Unicat+with+this+separate+company.+During+this+process%2C+the+CEO+learned+that+Unicat+had+a+pending+transaction+with+a+customer+in+Iran+%E2%80%93+a+violation+of+U.S.+economic+sanctions+laws+%E2%80%93+and+immediately+canceled+the+transaction.+This+news+surely+came+as+a+surprise+given+that+Unicat+represented+and+warranted+in+the+acquisition+agreement+that+Unicat%E2%80%99s+operations+complied+with+U.S.+sanctions+and+export+control+laws.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EWhite+Deer+and+Unicat+engaged+counsel+to+investigate+Unicat%E2%80%99s+compliance+with+applicable+U.S.+economic+sanctions+laws.+The+investigation+revealed+that%2C+from+2014+to+2021%2C+Unicat+made+sales+to+customers+in+Iran%2C+Venezuela%2C+Syria+and+Cuba%2C+all+in+violation+of+U.S.+economic+sanctions+laws.+Additionally%2C+Unicat+employees+falsified+invoices+to+reduce+tariffs+on+goods+imported+from+China%2C+thereby+avoiding+certain+duties%2C+taxes+and+fees.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EWhite+Deer+and+Unicat+Voluntarily+Disclose+to+the+NSD%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3ERecognizing+the+gravity+of+these+discoveries%2C+White+Deer+and+Unicat+submitted+a+voluntary+disclosure+to+the+NSD.+In+deciding+whether+to+prosecute+White+Deer+or+Unicat%2C+the+NSD+considered+the+factors+set+forth+in+the+NSD+M%26amp%3BA+Policy%2C+which+provides%3A+%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EW%3C%2Fspan%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3Ehen+a+company+%281%29+completes+a+lawful+%3Cem%3Ebona+fide%3C%2Fem%3E+acquisition+of+another+entity%2C+%282%29+voluntarily+and+timely+self-discloses+to+NSD+potentially+criminal+violations+of+laws+affecting+U.S.+national+security+committed+by+the+acquired+entity%2C+%283%29+fully+cooperates+with+NSD%E2%80%99s+investigation+and+%284%29+timely+and+appropriately+remediates+the+misconduct%2C+NSD+generally+will+not+seek+a+guilty+plea+from+the+acquiror%2C+and+there+is+a+presumption+that+NSD+will+decline+to+prosecute+the+acquiror.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EThe+NSD+M%26amp%3BA+Policy+further+provides+that+while+a+presumption+of+declination+%28i.e.%2C+a+decision+not+to+prosecute%29+is+not+available+to+the+acquired+entity%2C+NSD+will+credit+the+acquiror%E2%80%99s+timely%2C+voluntary+self-disclosure+to+the+NSD+and+will+consider+whether+the+acquired+entity+otherwise+satisfies+the+NSD+Enforcement+Policy%E2%80%99s+requirements+to+obtain+the+benefits+of+the+Policy.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EUnicat+Receives+a+Non-Prosecution+Agreement%2C+and+White+Deer+Receives+a+Declination%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EAs+a+result+of+the+timely%2C+voluntary+disclosure+of+its+violations+of+U.S.+economic+sanctions+and+export+controls+laws%2C+the+Justice+Department+announced+that+it+%28i%29+entered+into+a+Non-Prosecution+Agreement+%28NPA%29+with+Unicat+and+%28ii%29+declined+to+prosecute+White+Deer.+Pursuant+to+the+NPA%2C+Unicat+agreed+to+forfeit+millions+in+proceeds+from+the+offending+transactions+and+to+pay+certain+fines%2C+penalties%2C+underpaid+duties%2C+taxes%2C+and+fees.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EIn+applying+the+NSD+M%26amp%3BA+Policy+with+respect+to+White+Deer%2C+the+Justice+Department+declined+to+prosecute+White+Deer+for+Unicat%E2%80%99s+historical+violations+of+U.S.+economic+sanctions+and+export+control+laws.+Specifically%2C+the+Justice+Department+focused+on+the+following+factors+related+to+White+Deer%3A%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Col%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EThe+acquisition+of+White+Deer+was+a+lawful%2C+%3Cem%3Ebona+fide%3C%2Fem%3E+acquisition.%3C%2Fspan%3E%3C%2Fli%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EWhite+Deer+had+no+preexisting+obligation+to+disclose+Unicat%E2%80%99s+misconduct.%3C%2Fspan%3E%3C%2Fli%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EThe+disclosure+was+timely.+White+Deer+immediately+canceled+a+pending+transaction+with+the+Iranian+customer+and+made+its+disclosure+just+one+month+after+discovering+the+misconduct.%3C%2Fspan%3E%3C%2Fli%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EWhite+Deer+provided+and+caused+Unicat+to+provide+exceptional+and+proactive+cooperation+with+the+Justice+Department%2C+including+identifying%2C+collecting+and+disclosing+relevant+evidence+to+investigators+and+responding+in+a+timely+manner+to+the+government%E2%80%99s+requests+for+information+and+evidence.%3C%2Fspan%3E%3C%2Fli%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EWhite+Deer%E2%80%99s+cooperation+materially+assisted+the+government%E2%80%99s+investigation%2C+leading+to+the+successful+prosecution+of+Unicat%E2%80%99s+former+CEO.%3C%2Fspan%3E%3C%2Fli%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EWhite+Deer+timely+remediated+the+misconduct+in+less+than+one+year+from+the+date+of+its+discovery%2C+including+terminating+culpable+employees%2C+disciplining+others%2C+and+designing+and+implementing+a+comprehensive+and+robust+internal+controls+and+compliance+program+to+prevent+similar+misconduct+in+the+future.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Fol%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EIn+sum%2C+according+to+the+Assistant+Attorney+General+for+National+Security+in+a+%3Ca+href%3D%22https%3A%2F%2Fwww.justice.gov%2Fopa%2Fpr%2Fjustice-department-declines-prosecution-private-equity-firm-following-voluntary-disclosure%22+target%3D%22_blank%22+rel%3D%22noopener%22%3Epress+release%3C%2Fa%3E%2C+%E2%80%9Cafter+acquiring+a+company+with+a+hidden+history+of+sanctions+violations%2C+this+private+equity+firm+uncovered+the+misconduct%2C+stopped+it%2C+and+quickly+reported+it+to+the+government+leading+to+a+successful+prosecution+of+a+%5Bformer%5D+senior+executive.%E2%80%9D%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3ETakeaways%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EThe+Justice+Department%E2%80%99s+decision+is+the+first+time+since+the+creation+of+the+NSD+M%26amp%3BA+Policy+that+a+private+equity+firm+has+received+a+declination+for+voluntary+self-disclosure+of+criminal+conduct+discovered+post-closing.+The+Justice+Department%E2%80%99s+decision+not+to+prosecute+White+Deer+sends+a+strong+signal+to+private+equity+firms+that+timely+and+voluntary+self-disclosure+of+wrongdoing+and+cooperation+with+the+Justice+Department+are+key+to+taking+advantage+of+the+NSD+M%26amp%3BA+Policy%E2%80%99s+pathway+to+declination.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EIn+addition+to+ensuring+acquisition+agreements+include+representations+and+warranties+%28and+potentially+specific+indemnities%29+for+undisclosed+U.S.+sanctions+and+export+control+violations%2C+particularly+for+targets+with+international+operations+and+government-facing+contracts%2C+private+equity+firms+should+establish+rapid+internal+triage+and+disclosure+protocols+to+escalate+red+flags%2C+initiate+investigations+and+assess+whether+to+voluntarily+disclose+wrongdoing+when+it+is+discovered.%3C%2Fspan%3E%3C%2Fp%3E%0A -
06.17.25
DOJ Criminal Division’s Revised Corporate Enforcement Policy Provides Clarity to White Collar Enforcement
%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3Eby%3C%2Fspan%3E+%3Ca+href%3D%22https%3A%2F%2Fmcllp.com%2Fpeople%2Flewis-zirogiannis-pc%2F%22+target%3D%22_blank%22+rel%3D%22noopener%22%3ELewis+Zirogiannis%2C+P.C.%3C%2Fa%3E+%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3Eand%3C%2Fspan%3E+%3Ca+href%3D%22https%3A%2F%2Fmcllp.com%2Fpeople%2Fthomas-f-li%2F%22+target%3D%22_blank%22+rel%3D%22noopener%22%3EThomas+F.+Li%3C%2Fa%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EDOJ+Criminal+Division%E2%80%99s+Revised+Corporate+Enforcement+Policy+Provides+Clarity+to+White+Collar+Enforcement%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3ECompanies+on+the+receiving+end+of+Department+of+Justice+%28DOJ%29+investigations+for+alleged+corporate+crime+now+have+clearer+avenues+to+avoiding+formal+prosecution.%C2%A0+On+May+12%2C+2025%2C+the+DOJ+announced+a+revision+to+the%3C%2Fspan%3E+%3Ca+href%3D%22https%3A%2F%2Fwww.justice.gov%2Fcriminal%2Fmedia%2F1400031%2Fdl%3Finline.%22%3E%3Cstrong%3ECorporate+Enforcement+and+Voluntary+Disclosure+Policy+%28CEP%29%3C%2Fstrong%3E%3C%2Fa%3E.%3Ca+href%3D%22%23_ftn1%22+name%3D%22_ftnref1%22%3E%5B1%5D%3C%2Fa%3E%C2%A0+%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EThe+revisions+clarify+the+DOJ+criminal+division%E2%80%99s+%28Criminal+Division%29+approach+to+white-collar+enforcement+and+provide+a+clearer+path+to+declinations+%28%3Cem%3Ei.e.%3C%2Fem%3E%2C+a+decision+not+to+prosecute%29+for+companies+meeting+certain+conditions.%C2%A0%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EThe+revisions+to+the+CEP+are+aimed+at+reducing+enforcement+burdens+on+companies.+Importantly%2C+the+revised+CEP+sets+out+new+policies+that+are+geared+towards+providing+companies+with+clarity+as+to+how+they+can+obtain+declinations+or+favorable+resolutions.%C2%A0+This+is+consistent+with+the+DOJ%E2%80%99s+new+guidance+on+white-collar+enforcement+priorities%2C+also+released+on+May+12%2C+2025%2C+which+stated+that+%E2%80%9C%5Bt%5Dhe+Department%E2%80%99s+first+priority+is+to+prosecute+individuals%E2%80%9D+and+that+%E2%80%9C%5Bn%5Dot+all+corporate+misconduct+warrants+federal+criminal+prosecution.%E2%80%9D%C2%A0%C2%A0%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EPreviously%2C+companies+that+self-disclosed%2C+cooperated+and+remediated+were+presumed+to+receive+a+declination.%C2%A0+The+revised+policy+now+%3Cem%3Eassures%3C%2Fem%3E+declinations+to+qualifying+companies+if+the+company+%281%29+voluntarily+self-discloses+misconduct%2C+%282%29+fully+cooperates+with+the+DOJ%E2%80%99s+investigation%2C+%283%29+timely+and+appropriately+remediates+and+%284%29+has+no+aggravating+circumstances.%C2%A0%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EVoluntary+Self-Disclosure%3A%C2%A0+%3C%2Fstrong%3EThe+revised+CEP+lists+the+requirements+of+voluntary+self-disclosure%2C+requiring+%281%29+the+self-reporting+of+the+misconduct%2C+%282%29+that+the+conduct+was+previously+unknown+to+the+DOJ%2C+%283%29+no+pre-existing+obligation+to+disclose%2C+%284%29+that+disclosure+was+prior+to+any+imminent+threat+that+the+DOJ+would+learn+of+the+misconduct+and+%285%29+disclosure+was+reasonably+prompt.+%C2%A0Even+without+satisfying+all+requirements+of+voluntary+self-disclosure+under+the+revised+CEP%2C+companies+may+receive+a+Non-Prosecution+Agreement+%28NPA%29+if+the+company+%281%29+self-reported+the+misconduct+to+the+DOJ+%28but+did+not+satisfy+the+other+requirements+of+self-disclosure%29%2C+%282%29+fully+cooperated+with+the+investigation+and+%283%29+timely+and+appropriately+remediated%2C+unless+there+are+severe+aggravating+circumstances.%C2%A0+The+revised+CEP+refers+to+such+situation+as+a+%E2%80%9Cnear+miss%E2%80%9D+of+checking+all+requirements+of+voluntary+self-disclosure.%C2%A0+Under+such+circumstances+the+Criminal+Division+%28a%29+%E2%80%9Cshall%E2%80%9D+provide+an+NPA+%28absent+egregious+or+multiple+aggravating+circumstances%29+and+%28b%29+allow+a+term+length+of+the+NPA+of+fewer+than+years.%3C%2Fspan%3E%3Ca+href%3D%22%23_ftn2%22+name%3D%22_ftnref2%22%3E%5B2%5D%3C%2Fa%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EFull+Cooperation%3A%3C%2Fstrong%3E+A+company+fully+cooperates+when+it+%281%29+discloses+all+relevant%2C+non-privileged+facts+and+evidence+about+individuals+involved+in+the+misconduct%2C+%282%29+discloses+all+relevant%2C+non-privileged+facts+gathered+during+the+company%E2%80%99s+internal+investigation%2C+if+one+is+conducted%2C+%283%29+proactively+cooperates%2C+%284%29+timely+and+voluntarily+preserves%2C+collects%2C+and+discloses+relevant+documents%2C+%285%29+de-conflicts+witness+interviews+and+investigative+steps+that+the+company+intends+to+take+as+part+of+its+internal+investigation+to+prevent+the+company%E2%80%99s+investigation+from+conflicting%2C+or+interfering%2C+with+the+Criminal+Division%E2%80%99s+investigation+and+%286%29+makes+company+officers+and+employees+available+for+interviews+by+the+Criminal+Division%2C+subject+to+the+individuals%E2%80%99+Fifth+Amendment+rights.%3C%2Fspan%3E%3Ca+href%3D%22%23_ftn3%22+name%3D%22_ftnref3%22%3E%5B3%5D%3C%2Fa%3E%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E%C2%A0%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3ETimely+and+Appropriate+Remediation%3A%C2%A0+%3C%2Fstrong%3EThe+requirements+of+%E2%80%9Ctimely+and+appropriate+remediation%E2%80%9D+include%2C+among+other+things%2C+that+the+company+has+%281%29+demonstrated+a+thorough+analysis+of+the+causes+of+the+underlying+conduct%2C+%282%29+implemented+an+effective+compliance+and+ethics+program%2C+%283%29+appropriately+disciplined+employees%2C+%284%29+retained+business+records+and+prohibited+the+improper+destruction+of+those+records+and+%285%29+taken+any+additional+steps+that+demonstrate+recognition+of+the+seriousness+of+the+misconduct%2C+including+the+implementation+of+measures+to+reduce+the+risk+of+repetition+of+such+misconduct.%3C%2Fspan%3E%3Ca+href%3D%22%23_ftn4%22+name%3D%22_ftnref4%22%3E%5B4%5D%3C%2Fa%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3ELack+of+Aggravating+Circumstances%3A+%3C%2Fstrong%3EAs+for+aggravating+circumstances%2C+although+the+revised+CEP+does+not+define+those+circumstances%2C+it+refers+to+the+egregiousness+or+pervasiveness+of+the+misconduct+within+the+company%2C+severity+of+harm+and+whether+similar+misconduct+has+occurred+within+the+last+5+years+as+relevant+factors+in+considering+whether+the+misconduct+was+aggravated.+Companies+with+aggravating+circumstances+may+still+receive+declinations+based+on+the+severity+of+the+aggravating+factors%2C+level+of+cooperation+and+degree+of+remediation.%C2%A0+%C2%A0%C2%A0%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EIndeed%2C+even+companies+that+are+hesitant+about+self-disclosure+due+to+the+presence+of+aggravating+circumstances%2C+disentitling+them+to+declinations+or+NPAs%2C+may+take+advantage+of+potential+favorable+resolutions+under+the+revised+CEP.%C2%A0+Where+the+company+is+neither+entitled+to+declinations+nor+NPAs%2C+the+revised+CEP+maintains+prosecutorial+discretion+to+determine+the+appropriate+term+length%2C+compliance+obligations%2C+and+monetary+penalty%2C+and+encourages+reductions+in+any+fines+to+no+more+than+50%25+of+the+applicable+fine+under+the+United+States+Sentencing+Guidelines.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%2A%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0+%2A%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0+%2A%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EThe+revised+CEP+therefore+presents+a+unique+opportunity+for+companies+engaged+in+previous+misconduct+to+consider+voluntary+self-disclosure%2C+cooperation+and+appropriate+remediation+as+a+path+towards+declination%2C+NPAs+or+other+favorable+terms+of+resolution.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%3Ca+href%3D%22%23_ftnref1%22+name%3D%22_ftn1%22%3E%5B1%5D%3C%2Fa%3E+%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EOn+May+12%2C+2025%2C+the+DOJ+also+released+a+Memorandum+to+All+Criminal+Division+Personnel+entitled+%E2%80%9C%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3E%3Ca+style%3D%22color%3A+%23be9b64%3B%22+href%3D%22https%3A%2F%2Fwww.justice.gov%2Fcriminal%2Fmedia%2F1400046%2Fdl%3Finline%22%3E%3Cstrong%3EFocus%2C+Fairness%2C+and+Efficiency+in+the+Fight+Against+White-Collars+Crime%3C%2Fstrong%3E%3C%2Fa%3E%3C%2Fspan%3E%E2%80%9D+and%2C+separately%2C+a+memorandum+entitled+%E2%80%9C%3C%2Fspan%3E%3Ca+href%3D%22https%3A%2F%2Fwww.justice.gov%2Fcriminal%2Fmedia%2F1400036%2Fdl%3Finline%22%3E%3Cstrong%3EMemorandum+on+Selection+of+Monitors+in+Criminal+Division+Matters%3C%2Fstrong%3E%3C%2Fa%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E.%E2%80%9D%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3E%3Ca+style%3D%22color%3A+%23be9b64%3B%22+href%3D%22%23_ftnref2%22+name%3D%22_ftn2%22%3E%5B2%5D%3C%2Fa%3E+%3C%2Fspan%3ECEP%2C+Appendix+B.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%3Ca+href%3D%22%23_ftnref3%22+name%3D%22_ftn3%22%3E%5B3%5D%3C%2Fa%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E+%3Cem%3EId%3C%2Fem%3E.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%3Ca+href%3D%22%23_ftnref4%22+name%3D%22_ftn4%22%3E%5B4%5D%3C%2Fa%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E+%3Cem%3EId%3C%2Fem%3E.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A03.03.25Massumi + Consoli Strengthens Trial & Dispute Resolution Capabilities with Veteran Litigator in Dallas
%3Ch3%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3ELewis+Zirogiannis+Will+Deliver+Strategic+Counsel+for+Complex+Transaction-Related+Litigation+and+Other+High-Stakes+Disputes+and+Investigations%3C%2Fspan%3E%3C%2Fh3%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Ca+href%3D%22https%3A%2F%2Fmcllp.com%2F%22%3EMassumi+%2B+Consoli%3C%2Fa%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%2C+a+nationwide+law+firm+focused+on+private+equity+and+M%26amp%3BA%2C+is+pleased+to+announce+that%3C%2Fspan%3E+%3Ca+href%3D%22https%3A%2F%2Fmcllp.com%2Fpeople%2Flewis-zirogiannis%2F%22%3ELewis+Zirogiannis%3C%2Fa%3E+%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3Ehas+joined+the+firm+as+a+Partner+in+its%3C%2Fspan%3E+%3Ca+href%3D%22https%3A%2F%2Fmcllp.com%2Fcapabilities%2Flitigation-dispute-resolution%2F%22%3ELitigation+%26amp%3B+Dispute+Resolution+%3C%2Fa%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3Epractice%2C+in+the+firm%E2%80%99s+Dallas+office.+Lewis+joins+other+recent+additions%2C%3C%2Fspan%3E+%3Ca+href%3D%22https%3A%2F%2Fmcllp.com%2Fpeople%2Fmichael-r-huttenlocher%2F%22%3EMichael+Huttenlocher%3C%2Fa%3E+%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3Eand%3C%2Fspan%3E+%3Ca+href%3D%22https%3A%2F%2Fmcllp.com%2Fpeople%2Fthomas-f-li%2F%22%3EThomas+Li%3C%2Fa%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%2C+as+the+firm+continues+to+enhance+its+offering+for+clients+navigating%3C%2Fspan%3E+%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3Etransaction-related+litigation+and+other+high-stakes+disputes+and+controversies.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3ELewis+focuses+his+practice+on+litigation+and+dispute+resolution+matters%2C+as+well+as+compliance%2C+internal+investigations+and+government+and+regulatory+enforcement+issues.+With+over+two+decades+of+experience%2C+including+roles+in+private+practice%2C+a+decade+in+executive-level+in-house+counsel+positions+at+two+%3Cem%3EFortune+50+%3C%2Fem%3Eglobal+companies+and+a+federal+clerkship%2C+Lewis%E2%80%99+arrival+underscores+M%2BC%E2%80%99s+commitment+to+bolstering+its+nationwide+litigation+platform.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%E2%80%9CWe+are+excited+to+welcome+Lewis+to+the+team.+Lewis+brings+a+rare+blend+of+experiences+that+allow+him+to+craft+business-savvy+litigation+and+compliance+strategies.+We%E2%80%99re+confident+his+insights+will+help+us+deliver+more+effective+solutions+and+protect+our+clients%E2%80%99+interests+when+disputes+arise%2C%E2%80%9D+said%3C%2Fspan%3E+%3Ca+href%3D%22https%3A%2F%2Fmcllp.com%2Fpeople%2Fanthony-consoli-pc%2F%22%3EAnthony+Consoli%3C%2Fa%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%2C+co-founder+of+Massumi+%2B+Consoli.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3ELewis+has+extensive+experience+representing+a+wide+range+of+enterprises%2C+discerning+investors+and+other+businesses+in+all+aspects+of+complex+commercial+litigation%2C+including+transaction-related+controversies%2C+such+as+purchase+price+adjustments%2C+earnout+disputes%2C+indemnity+claims%2C+representation+and+warranty+related+conflicts+and+more.+He+also+advises+portfolio+companies%2C+publicly+traded+and+privately+held+businesses%2C+C-suite+executives+and+boards+of+directors+on+matters+concerning+white+collar+defense%2C+regulatory+enforcement+and+investigations.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EIn+addition%2C+Lewis+has+worked+closely+with+clients+to+design+and+implement+corporate+compliance+programs+and+has+led+numerous+internal+investigations.+His+experience+spans+nearly+every+industry%2C+equipping+him+to+provide+seasoned+counsel+to+the+firm%E2%80%99s+diverse+base+of+industry-agnostic+portfolio+company+clients.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%E2%80%9CWe+couldn%E2%80%99t+be+more+excited+about+the+trajectory+of+the+firm%E2%80%99s+Litigation+%26amp%3B+Dispute+Resolution+practice%2C%E2%80%9D+said%3C%2Fspan%3E+%3Ca+href%3D%22https%3A%2F%2Fmcllp.com%2Fpeople%2Fpeter-massumi-pc%2F%22%3EPeter+Massumi%3C%2Fa%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%2C+the+firm%E2%80%99s+other+co-founder.+%E2%80%9CBy+bringing+Lewis+on+board+to+partner%3C%2Fspan%3E+%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3Ewith+Mike+Huttenlocher%2C+we%E2%80%99re+forging+a+powerful+leadership+team+at+the+helm+of+this+group%2C+and+we%E2%80%99re+committed+to+surrounding+them+with+top-tier+talent+to+further+elevate+our+partnership+with+our+clients.%E2%80%9D%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%E2%80%9CI+am+excited+to+build+on+the+momentum+at+the+firm+to+help+continue+creating+a+first-rate+litigation+practice+here+at+M%2BC%2C%E2%80%9D+added+Lewis.+%E2%80%9CThe+firm%E2%80%99s+collaborative+spirit%2C+commitment+to+client+service+and+transactional+roots+dovetail+perfectly+with+my+practice%2C+and+I+look+forward+to+helping+drive+the+firm%E2%80%99s+continued+growth+in+Dallas+and+nationwide.%E2%80%9D%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EPrior+to+joining+Massumi+%2B+Consoli%2C+Lewis+was+a+Partner+at+Baker+Botts.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EAbout+Massumi+%2B+Consoli%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EMassumi+%2B+Consoli+is+a+nationwide%2C+Chambers-ranked+law+firm+that+delivers+exceptional+expertise+and+unmatched+client+experience+specifically+tailored+to+the+middle+market+needs+of+private+equity+firms+and+other+financial+sponsors%2C+as+well+as+other+dynamic+and+acquisitive+enterprises.+Founded+in+2015+as+a+spin-out+from+the+Private+Equity+and+M%26amp%3BA+Group+of+Kirkland+%26amp%3B+Ellis%2C+the+firm%E2%80%99s+approach+combines+the+proficiency+of+the+best+large+international+law+firms+with+a+highly+personalized%2C+boutique+experience.%3C%2Fspan%3E%3C%2Fp%3E%0A