The United States v. Heinz Ruling: Expansive FIRREA Liability for Financial Institutions
The U.S. Department of Justice (DOJ) has been aggressively utilizing the civil money penalty provision of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) to investigate and sue banks and persons suspected of financial fraud. Since its enactment in the wake of the savings and loan crisis in the 1980s, there has been a scarcity of case law on the issue of when a fraud affects a financial institution because the government seldom used FIRREA prior in 2010. However, in June 2015, the Act incurred a sudden boost when the U.S. Court of Appeals for the Second Circuit affirmed the conviction of three former UBS Financial Services, Inc. (UBS) employees charged with bank and wire fraud. Three individuals - Peter Ghavami, Gary Heinz, and Michael Welty - were indicted in 2011 in a six-count superseding indictment charging them with fraud that affected a financial institution.
In a two-hour LIVE Webcast, a panel of thought leaders and practitioners assembled by The Knowledge Group will offer a thorough discussion of FIRREA as they apply to financial institutions, will discuss recent cases including the Heinz case, and will provide the best guidance and tips as to how to prevent, detect, and defend against these lawsuits.
Some of the major topics to be discussed are:
- FIRREA – An Overview
- United States v. Heinz Ruling
- FIRREA Civil Penalty Provision
- Section 1833a
- Statute of Limitations
- Civil Money Penalties
- Federally Insured Financial Institution
W. Clark Goodman, Partner
Womble Carlyle Sandridge & Rice, LLP
- The Birth of FIRREA (or…How We Became “The Land of the FIRREA”)
- FIRREA STRUCTURE (or…How to Build a FIRREA)
- FIRREA’S Appeal to DOJ (or…Ready, Aim, FIRREA
- The Evolving Application of FIRREA (or…Out of the Frying Pan and Into the FIRREA)
S. Penny Windle, Partner
Cahill Gordon & Reindel LLP
- Recent FIRREA Cases and Theories, Including the “Self-Affecting” Theory in Cases against Financial Institutions
- The early SDNY cases: Factual and procedural summary of cases against BNY Mellon, Wells Fargo and Countrywide
- The “Self Affecting” Theory: Trio of decisions from SDNY
- Penalty Theories: Countrywide verdict and penalty decision
- “Contemporaneous Intent” – Recent Second Circuit decision reversing Countrywide
Jennifer M. Wollenberg, Special Counsel
Fried, Frank, Harris, Shriver & Jacobson LLP
- The Heinz Case: Factual And Procedural Background
- How Heinz Can Be Distinguished From The “Self-Affecting” Cases Against Financial Institutions
- The Yates Memo: Even More Individual Accountability For “Self-Affecting” Financial Institutions?
Geoffrey Graber, Partner
Cohen Milstein Sellers & Toll PLLC
- One Year After Heinz: Reliance on the Decision and How it Does (or Does Not) relate to the “Self-Affecting” Theory
Who Should Attend:
- Fraud Analysts
- Chief Financial Officers
- Bank and Financial Institution Auditors
- Bank and Financial Institution Executives
- Fraud Monitoring
- Fund Managers
- Bank Regulation Lawyers
- Banking & Finance Lawyers
- Attorneys and Consultants who advise clients on FCA related issues
- Senior Executives
- Risk Executives
- In-House Counsel
- Chief Compliance Officers
- Other Related and Interested Professionals
Clark is a partner in the Business Litigation Group at Womble Carlyle. His diverse litigation experience includes civil rights defense, insurance liability and coverage litigation, environmental and toxic tort litigation and complex commercial litigation. His practice now focuses on defending lenders in consumer finance litigation, particularly claims asserting novel theories of lender liability arising out of origination, underwriting and loss mitigation practices.
Clark is a North Carolina native and received his A.B. in English and Spanish from Duke University, where he was the first recipient of the Trinity Scholarship. He received his J.D. from Harvard University in 1993.
Clark is a partner in the Business Litigation Group at Womble Carlyle. His diverse litigation experience includes civil rights defense, …
Jennifer M. Wollenberg is a litigation special counsel in Fried Frank’s Washington, DC office, where she is a member of the Firm’s False Claims Act and FIRREA Practice. Ms. Wollenberg has been engaged in a variety of matters, including False Claims Act and FIRREA investigations and litigation, commercial litigation and arbitration, and internal investigations and monitoring. She is currently representing a major financial institution in one of the largest active False Claims Act and FIRREA litigations in the country. Ms. Wollenberg frequently speaks and writes about the False Claims Act and FIRREA and is a co-author of FraudMail Alert®, which reports on significant developments in the False Claims Act and FIRREA arena. Ms. Wollenberg received her JD from Cornell Law School and is admitted to practice in the District of Columbia, New York, the United States Court of Appeals (Second, Ninth, and District of Columbia Circuits), the United States Court of Federal Claims, the United States District Court for the District of Columbia, and the United States District Court for the Southern District of New York.
Jennifer M. Wollenberg is a litigation special counsel in Fried Frank’s Washington, DC office, where she is a member of …
Penny Windle is a partner in Cahill Gordon & Reindel LLP's litigation practice group and serves on its Development Committee.Penny represents global corporations, leading banks, boards of directors, special committees and directors and officers of publicly-held companies in high-stakes commercial litigation and government investigations, with particular emphasis on complex securities, insurance and reinsurance matters. Penny is recognized as a New York Litigation Star and one of the "Top 250 Women in Litigation" in the United States by Benchmark Litigation, and is recommended by The Legal 500.
Penny served as a lead counsel in the defense of McGraw Hill Financial, Inc. and Standard & Poor’s Financial Services, LLC in a FIRREA lawsuit brought by the United States Department of Justice and related lawsuits brought by the attorneys general of 19 states and the District of Co-lumbia relating to the rating of residential mortgage-backed securities and collateralized debt ob-ligations in the years preceding the financial crisis. Penny also served as a lead counsel in multi-ple investigations by the United States Securities and Exchange Commission and several addi-tional state attorneys general, as well as multiple private lawsuits, in related matters.
Penny Windle is a partner in Cahill Gordon & Reindel LLP's litigation practice group and serves on its Development Committee.Penny …
Geoffrey Graber is a partner at Cohen Milstein Sellers & Toll PLLC and is a member of the Commercial Contingency Group and the Consumer Protection & Unsafe Products Group.
Prior to joining Cohen Milstein, Mr. Graber served as a Deputy Associate Attorney General and Director of the Residential Mortgage-Backed Securities (RMBS) Working Group at the United States Department of Justice. In this capacity, Mr. Graber oversaw the Department’s nationwide investigation into the packaging and sale of mortgage-backed securities leading up to the financial crisis. These RMBS Working Group investigations ultimately recovered over $36 billion. These recoveries included the record-breaking $16.65 billion settlement reached in August 2014 with Bank of America – the largest settlement with a single entity in American history – as well as settlements with Citigroup ($7 billion), and JP Morgan ($13 billion).
In 2014, Mr. Graber received the Attorney General’s Distinguished Service Award for his work relating to the $13 billion settlement with JP Morgan - including, at the time, the largest FIRREA penalty recovered by the Department of Justice. In October 2015, he again received the Attorney General’s Distinguished Service Award for his work on the successful investigation and litigation against S&P.
Geoffrey Graber is a partner at Cohen Milstein Sellers & Toll PLLC and is a member of the Commercial Contingency …
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About Womble Carlyle Sandridge & Rice, LLP
Womble Carlyle is a full-service business law firm with a focus on innovative solutions to client needs. Founded in 1876, Womble Carlyle serves clients nationally and globally with more than 550 attorneys in 14 offices located in the Southeast, Mid-Atlantic and West Coast.
In 1879, Wachovia Bank was chartered in the offices of Glenn and Watson – the law firm now known as Womble Carlyle. While the firm’s name has changed in the intervening years, its service to financial institutions has remained constant. The practice that began with the formation of Wachovia Bank in 1879 now includes a wide range of complex services for all types of financial institutions, from bank formation and mergers to corporate and syndicated lending, regulatory compliance, risk management, data security, and litigation.
About Fried, Frank, Harris, Shriver & Jacobson LLP
From offices located in the world's principal financial centers, Fried, Frank, Harris, Shriver & Jacobson LLP’s lawyers provide advice to clients regarding their most critical legal and business needs. Fried Frank’s False Claims Act and FIRREA attorneys have extensive experience in every facet of the civil False Claims Act, and have been on the cutting edge of litigation and debate about the interpretation and scope of both statutes – the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act of 1989. The Firm regularly represents financial industry, defense, healthcare, and other government contractors in high stakes cases. The Firm’s False Claims Act and FIRREA practitioners also assist and represent entities not normally associated with federal and state fraud investigations, such as municipal airport authorities, computer manufacturers, private and state universities, academic medical centers, import and export companies, major accounting and consulting firms, magazine publishers, and oil and gas exploration companies.
About Cahill Gordon & Reindel LLP
Cahill is among the most successful law firms in the world. With a history of legal innovation dating back to the firm’s founding in 1919, Cahill is trusted by market-leading financial institutions, companies and their boards to manage significant litigation, regulatory matters and trans-actions. Based in New York, Cahill also has offices in London and Washington, D.C.
About Cohen Milstein Sellers & Toll PLLC
For over 40 years, Cohen Milstein Sellers & Toll PLLC has been a pioneer in plaintiff class action lawsuits on behalf of victims of such abuses. By creating a group or class, individuals join to fight companies in court and enhance their ability to fight corporations who often have larger resources. As one of the premier firms in the country handling major complex class actions, Cohen Milstein, with over 80 attorneys and offices in Washington, D.C., New York, Philadelphia, Chicago, Denver and Palm Beach Gardens, FL, is a firm that specializes in cases concerning Antitrust, Catastrophic Injury, Civil Rights & Employment, Commercial Contingency, Consumer Protection, Employee Benefits, Ethics and Fiduciary Counseling, Human Rights, Managed Care Abuse, Product Liability, Public Client, Securities Fraud, and Whistleblower/False Claims Act litigation.