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Government Enforcement Exposed - "The GEE"
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19 Feb 2018 Cybersecurity: CFTC Brings Enforcement Action For Faulty IT System

  This past week, the Commodity Futures Trading Commission (CFTC) settled an enforcement action in which it had alleged that futures commission merchant AMP Global Clearing LLC violated 17 C.F.R. 166.3 (duty of supervision) by failing to diligently supervise implementation of a critical component of its information systems security program (ISSP).  As a result, AMP suffered a cybersecurity breach that led to loss of nearly 100,000 files, including customers’ personal identifying information.  As a result of the settlement, AMP paid a $100,000 fine and, undoubtedly, faces significant other expenses in dealing with the customers for whom it lost private information.  AMP will also have to provide written verification to the CFTC of its efforts to strengthen its network security and ensure compliance with its ISSP….

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03 Jul 2014 Your Cell Phone – Riley v. California & the Post-Digital Privacy Era

  On June 25, 2014, a unanimous Supreme Court decided the case of Riley v. California, and in doing so, thrust the legal world into the post-digital privacy era. The Court held that the police may not search for and seize the digital contents of an individual’s cell phone or personal electronic device, incident to an arrest, without first obtaining a search warrant authorizing them to do so. The Court did, notably, carve out a possible exception to the warrant requirement when an “emergency” or “exigent circumstances” exist. Situations where evidence is about to be destroyed or a bomb about to be set off, may present a sufficiently heightened set of circumstances allowing the warrant requirement to be waived. This holding provides law enforcement officials across the country with guidance on how to…

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06 Jun 2014 Canadian Corruption of Foreign Officials Act Update: Three Takeaways from the Cryptometics Case

The Royal Canadian Mounted Police (the RCMP) recently announced charges against Robert Barra, Dario Bernini and Shailesh Govindra, three individuals connected with Cryptometrics Canada (Cryptometrics), a subsidiary of U.S.-based Cryptometrics Corporation (Cryptometrics USA), for violations of Section 3.1 of the Canadian Corruption of Foreign Officials Act (the CFPOA).  These charges relate to a failed scheme to bribe Indian officials to secure the award of a $100 million contract for facial recognition software, and come in the wake of the conviction and sentencing of Nazir Karigar, a Canadian citizen and former agent for Cryptometrics, for his involvement in the scheme.   The charges are significant for U.S. companies – particularly those doing business in Canada – for three reasons.   First, the charges were brought against…

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28 May 2014 Dear Department of Justice: Welcome to the “Modern Age”

  On May 12, 2014, Deputy Attorney General James Cole issued a memo to federal prosecutors, as well as several investigative offices (the FBI, DEA, ATF and U.S. Marshals Service) entitled “Policy Concerning Electronic recording of Statements.” The issuance of the memo is somewhat worthy of note because it was done with no fanfare or announcement by the Department, at the time. It is more worthy of note because it reflects a dramatic change in a many decades-long policy of the Department not to electronically record in-custody interviews. Attorney General Holder has described the change as a “sweeping new policy” and the Department announced the “significant policy shift concerning electronic recording of statements” in a May 22, 2014, press release, after several published reports on the…

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27 May 2014 CYBERCRIME & YOUR COMPANY – FAILING TO PREPARE = PREPARING TO FAIL, Part 2

Continuation of last week’s Cybercrime & Your Company – Failing to Prepare = Preparing to Fail, Part 1.   V. If Your Company Becomes the Next Victim   If your company becomes the next target/victim of cybercriminals, personal information of your employees and customers can be compromised. Sensitive and proprietary data can be stolen and sold to the highest bidder, usually one of your competitors. Financial resources can disappear and the reputation of your business can be ruined.   VI. Key Steps to Protect Your Computer System from the Cybercriminal   How can you protect your computer system from a cybercriminal, a digital terrorist, waiting to wreak havoc upon your company? Here are some key tips:  Ensure your employees set strong passwords, change them periodically and…

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22 May 2014 CYBERCRIME & YOUR COMPANY – FAILING TO PREPARE = PREPARING TO FAIL, Part 1

  1. The Threat “If you don’t lock your car, it’s vulnerable.  If you don’t’ secure your computer, it’s vulnerable.”   “Reduce your vulnerability, and you reduce the threat.”   Information on how to protect your computer.   There are over 2 billion people worldwide using the Internet.  An alarming number of these people make a decent living as cybercriminals.  In doing so, they cower behind the anonymity provided by the Internet.  They destroy lives.  They injure businesses and compromise the integrity of the global economy.   2. The Reality In a report recently released by the FBI’s Internet Crime Complaint Center (“IC3”), the agency disclosed that it had received 262,813 “consumer” complaints of suspected internet crime in 2013.  These complaints involved an adjusted dollar…

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15 May 2014 Magistrates’ Revolt: Unexpected Resistance to Federal Government Efforts to Get “General Warrants” for Electronic Information

  Any White Collar practitioner, and anyone interested in current and future efforts by the Federal Government to access electronic communications in its investigations, should take note of a recent mini-trend amongst a number of United States Federal Magistrates around the country. That trend, recently noted by the Washington Post, involves United States Magistrates – the “work horses” of the Federal courts who handle much of the day-to-day work carried out in the Federal court system. In a number of rulings issued without generating much publicity, a series of Federal Magistrates around the country have been denying Government requests for search warrants for broad, and sometimes all encompassing, swaths of electronic communications of suspects. These requests typically come before the Magistrates in the form of search warrants addressed to telecommunications companies to provide…

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01 Apr 2014 ILLINOIS SUPREME COURT FINDS EAVESDROPPING LAW UNCONSTITUTIONAL, BUT DON’T TELL ROSE MARY WOODS JUST YET

  The Illinois Supreme Court has concluded in two recent cases that Illinois’s long-standing prohibition against recording conversations unless all parties consent to the conversation is unconstitutionally overbroad. The Court determined that the statute prohibited recording conversations that could not possibly be deemed private and potentially applied to numerous situations, like recording public interactions with law enforcement or government officials, which arguably impinged on the public’s First Amendment rights. For a more detailed account of the Court’s rulings and its potential impact in the employment arena, see the recent client alert published by the Firm’s Labor & Employment law group.   Whether these decisions have any lasting impact, though, remains to be seen. The Court did not conclude that the notion of a two-party consent…

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27 Feb 2014 A Little-Known Exception to the 4th Amendment: Is Your Company’s Confidential, Proprietary Data Safe from Government Inspection When Entering the U.S.?

By Brian Weir-Harden* |    You arrive home to the United States from an international business trip. Customs directs you to open your bags for an inspection. Unconcerned, you acquiesce. The Customs Agent goes through your bags and finds nothing of interest, except your work laptop. To your surprise, the Customs Agent asks you to turn it on. He randomly opens files and reviews their contents. To your further surprise, the Customs Agent informs you that he will need to temporarily confiscate your work laptop in order to conduct a forensic examination. He takes your computer and makes an image of all its contents. You think to yourself, “This must be a violation of my Fourth Amendment rights against unreasonable searches and seizure, right?”   The answer:…

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