White-Collar Criminal Law

April 9, 2024April 9, 2024 by Duane Morris

Coinbase’s Defense Falters: Latest Developments in SEC Legal Battle

A New York federal court has held that the SEC sufficiently pleaded that Coinbase—a well-known cryptocurrency exchange, broker, and clearing agency—operated as an unregistered intermediary of securities and engaged in the unregistered offer and sale of securities through its crypto staking program. In a partial win for Coinbase (and possibly others offering wallet services), the court dismissed the SEC’s claim that Coinbase acted as an unregistered broker by offering a crypto wallet application to its customers. The case is Sec. and Exch. Comm’n v. Coinbase, Inc., 23 Civ. 4738 (S.D.N.Y. Mar. 27, 2024).

This decision has important ramifications for all players in the crypto market, as it clears the way for the SEC to continue to act as the primary regulator of crypto in the absence of further regulatory direction from Congress and allows the SEC to continue aggressive enforcement in the crypto space.

To read the full text of this post by Duane Morris’ Mauro Wolfe , Vincent Nolan and Alek Smolij, please visit the Duane Morris Fintech Blog.

October 10, 2023 by Duane Morris

Webinar: U.S. Law Enforcement Targets Crypto in Asia: The Tiger in the Grass ‒ What Every Crypto Actor Must Know Now

Duane Morris will present U.S. Law Enforcement Targets Crypto in Asia: The Tiger in the Grass ‒ What Every Crypto Actor Must Know Now on Thursday, November 30, 2023, from 10:00 a.m. to 11:00 a.m. Singapore.

About the Program

Crypto entrepreneurs and their financers and advisers are facing unprecedented enforcement activity from the U.S. government, including the U.S. Securities and Exchange Commission (SEC) and the U.S. Department of Justice (DOJ). The SEC, in particular, has taken an aggressive stance in applying U.S. securities law to internationally based cryptocurrencies, and international players in the crypto market are routinely being called to defend themselves in U.S.-based investigations and U.S. courts.

In this webinar, a Duane Morris team will discuss the basis for the SEC and DOJ’s assertion of jurisdiction over international actors so that crypto players can determine whether their actions may lead to the need to comply with U.S. securities laws. The panel will also discuss the various U.S. laws that could be triggered so that foreign crypto actors become more acquainted with U.S. laws and regulations. The focus of the webinar is to educate crypto players enough so that they understand the risks.

Speakers

Mauro Wolfe
Ramiro Rodriguez

Moderator

Vincent Nolan

Learn more about the event and Duane Morris’ Fintech Group.

Note: For those attendees located in the U.S., the time for this webinar is Wednesday, November 29, 2023, from 10:00 p.m. to 11:00 p.m. Eastern.

July 17, 2023July 18, 2023 by Mauro M. Wolfe

Both Defendants and the Security and Exchange Commission Score Partial Wins in Cryptocurrency Decision

By Mauro Wolfe, Vincent Nolan and Angela Benoit

On July 13, 2023, the U.S. District Court for the Southern District of New York granted partial summary judgment in favor of Ripple Labs Inc. (Ripple), holding that the company did not violate the Securities Act by selling its XRP token on public exchanges.

Despite this partial win, the Court also held that Ripple’s sale of the XRP tokens to sophisticated individuals and entities including hedge funds and institutional investors did constitute an unregistered securities offering.

Continue reading “Both Defendants and the Security and Exchange Commission Score Partial Wins in Cryptocurrency Decision”

May 18, 2023 by Duane Morris

Pennsylvania Innocence Project Recognizes Leigh Skipper for His Commitment to Pursuing Justice

The Pennsylvania Innocence Project presented the 2023 Maureen Rowley Award to Duane Morris partner Leigh Skipper. Leigh is the former Chief Federal Defender for the Eastern District of Pennsylvania. He succeeded Maureen Rowley in that role in 2009 and led one of the largest and most respected federal defender offices in the country until 2022. After graduating from law school, Leigh spent his career working in criminal defense at the Federal Defender and the Defender Association of Philadelphia. Leigh has served as the president of the Barrister’s Association of Philadelphia and the National Association of Federal Defenders and as the chairman of the Philadelphia Bar Association’s Judicial Selection and Retention Committee. He is a fellow of the American College of Trial Lawyers and chairs the Public Defender Committee.

Read more about Leigh on the Pennsylvania Innocence website.

September 23, 2022 by Duane Morris

Duane Morris Partner Michael Lipman Quoted on “Fat Leonard” Extradition

Duane Morris partner Michael Lipman was quoted on ABC10 News in San Diego in reference to the “Fat Leonard” Francis extradition case. Francis, who pleaded guilty to bribing U.S. Navy officers, removed his GPS monitor and fled to Venezuela. From the article:

Lipman has both prosecuted and defended extradition cases during his career. He says several factors can come into play in determining how long Francis could remain in Venezuelan custody.

That includes the terms of the extradition treaty, Venezuelan law, and whether Francis has the right under Venezuelan law to challenge extradition. However, Lipman says sometimes countries can negotiate outside of the treaty.

“You have no idea what’s going on between the United States and Venezuela and what debits and credits can be called on regardless of what the relationships are with the country.”

Lipman also said it is even possible Venezuela decides to avoid any of that trouble by simply returning Francis.

To read the full text of the article and view the video, please visit the ABC10 News website.

August 22, 2022 by Duane Morris

Fraud-On-The-FDA Theory Of Liability Reawakened by DOJ Filing

On June 3, the U.S. Department of Justice Civil Division’s Washington, D.C., office filed a statement of interest in a relator’s action, arguing that “[c]onduct giving rise to a regulatory violation can also give rise to” False Claims Act liability.

The case is U.S. ex rel. Patricia Crocano v. Trividia Health Inc., before the U.S. District Court for the Southern District of Florida.

Specifically, the DOJ requested “that the ruling not foreclose the possibility that, under certain circumstances,” conduct that violates the Federal Food, Drug and Cosmetic Act or U.S. Food and Drug Administration regulations “could be material to the government’s payment decisions and provide a basis for FCA liability assuming all necessary FCA elements are demonstrated,”[3] colloquially known as “fraud on the FDA.”

This filing makes clear the DOJ’s decision to reawaken a theory of liability thought to be dead.

To read the full text of this article by Duane Morris attorneys Eric Breslin, Frederick R. Ball and Brittany Pagnotta, originally published in Law360, please visit the firm website.

July 8, 2022 by Duane Morris

Supreme Court Declines to Allow Miranda Violations as a Basis For a 42 U.S.C. § 1983 Claim

By Mario J. Cacciola

On June 23, 2022, the Supreme Court of the United State held that a violation of the Miranda rules does not provide a basis for a claim under 42 U.S.C. § 1983. Writing for the majority in Vega v. Tekoh, 597 U.S. (2022), Justice Alito stated, “The question we must decide is whether a violation of the Miranda rules provides a basis for a claim under § 1983. We hold that it does not.” In reaching its decision, the Court rejected the Ninth Circuit Court of Appeals finding that Miranda constitutes a violation of Fifth Amendment protections, and described Miranda as “set of prophylactic rules” that are “constitutionally based” rather than a de facto violation of the Fifth Amendment. As a result of the Court’s decision, the relief individuals may seek when facing a violation of Miranda is limited to seeking to exclude any wrongfully obtained statements from use at trial. Continue reading “Supreme Court Declines to Allow Miranda Violations as a Basis For a 42 U.S.C. § 1983 Claim”

June 30, 2022 by Duane Morris

Key Questions for New York and New Jersey Businesses Following the U.S. Supreme Court’s Gun Decision

On June 23, 2022, the Supreme Court of the United States recognized a constitutional right for citizens to carry a firearm outside the home for self-defense. The opinion invalidates the licensing regimes for carry permits in California, Hawaii, Maryland, Massachusetts, New Jersey, New York and the District of Columbia. Although New York and New Jersey each allow for licenses to carry, they were previously limited to those who could show some extraordinary need, and therefore not available to the average citizen. In New York Rifle & Pistol Assn. v. Bruen, the Supreme Court held that such restrictions are unconstitutional and that law-abiding citizens have a right to carry a gun for self-defense purposes.

This means that, for the first time since the early and mid-20th century, respectively, residents of New York and New Jersey will be permitted to carry firearms in public.

To read the full text of this Duane Morris Alert, please visit the firm website.

June 28, 2022 by Duane Morris

Fraud-on-the-FDA Theory of False Claims Act Liability Clarified by DOJ

On June 3, 2022, the Civil Division of the Department of Justice filed a statement of interest in a relator’s action in the Southern District of Florida, arguing that “[c]onduct giving rise to a regulatory violations can also give rise to [False Claims Act] liability.” Specifically, requesting “that the ruling not foreclose the possibility that, under certain circumstances, conduct giving rise to violations of the [Federal Food, Drug and Cosmetic Act] or FDA regulations could be material to the government’s payment decisions and provide a basis for FCA liability assuming all necessary FCA elements are demonstrated,” also known as “fraud on the FDA.”

To read the full text of this Alert, please visit the firm website.

June 27, 2022 by Duane Morris

United States Supreme Court Recognizes a Constitutional Right to Carry Firearms for Self-Defense

On June 23, 2022, the Supreme Court of the United States struck down New York’s restrictive concealed carry licensing regime as unconstitutional under the Second Amendment, invalidating licensing regimes in an additional six jurisdictions. In so doing, the Court rejected the long-standing practice of balancing the text and history of the Second Amendment with governmental interest, known as “means-end” scrutiny.

To read the full text of this Duane Morris Alert, please visit the firm website.