2019 TAF Conference

1. 2019 TAF Conference Panel: Best Practices for Matters Featuring Joint and/or Overlapping Investigations by Different Agencies

2. Panelist Participants • Jordi de Llano – U.S. Attorney’s Office for the District of Massachusetts, Deputy Chief of the Securities & Financial Fraud Unit • Paul Hayeck – U.S. Commodity Futures Trading Commission (CFTC), Division of Enforcement, Deputy Director • William Jauquet – Comptroller of the Currency (OCC), Enforcement Division, Assistant Director • Rami Sibay – U.S. Securities and Exchange Commission, Division of Enforcement, Assistant Director • Vince McKnight – Sanford Heisler Sharp, LLP, Washington, D.C. Managing Partner, Whistleblower & Qui Tam Practice Group Co-Chair

3. Jordi de Llano Biography • Joined United States Attorney’s Office for the District of Massachusetts in 2014 and currently serves as Deputy Chief of the Securities & Financial Fraud Unit. • Led the district’s Financial Crimes Task Force and prosecuted cases arising out of Suspicious Activity Reports (SARs). • As an AUSA, investigated and prosecuted a number of individuals and entities for a wide array of white-collar offenses including securities and investment frauds, tax evasion, money laundering, as well as violations of the Foreign Corrupt Practices Act, Bank Secrecy Act, and Travel Act. • Previously served for two years in the U.S. Attorney’s Office in Lexington, Kentucky, • Prior to joining the Department of Justice, served as an Integrity Officer at the Inter-American Development Bank (IADB) in Washington, D.C., where he conducted fraud and corruption investigations in connection with IADB-financed activities in Latin America and the Caribbean.

4. Paul Hayeck Biography • Joined CFTC in 1999 as a Senior Trial Attorney and currently serves as Deputy Director of the Commission’s Division of Enforcement. • Currently an Adjunct Professor at both the American University Washington College of Law and Georgetown University and teaches Regulation of Derivatives. • Prior to joining the Commission, was a partner in a law firm in Boston, Massachusetts, where main focus was commercial litigation.

5. William Jauquet Biography • Assistant Director for the Enforcement Division of the Office of the Comptroller of the Currency (OCC) since 2014. • Manages a team of attorneys, who conduct investigations and bring enforcement actions against banks and officers, directors, and employees of banks. • Investigations and enforcement actions cover issues related to fraud, self-dealing, violations of consumer laws, bank secrecy act and anti-money laundering, and unsafe or unsound practices. • Joined the OCC in the Chief Counsel’s Enforcement Division in 2006 and during his tenure served as a Special Assistant U.S. Attorney for the Eastern District of Virginia.

6. Rami Sibay Biography • Assistant Director in the SEC’s Division of Enforcement, where he leads teams of attorneys, accountants, and market specialists investigating potential violations of the federal securities laws. • Conducted and supervised a broad range of investigations involving accounting, disclosure, and internal controls violations by public companies; misconduct by independent auditors; violations of the securities registration requirements; offering frauds; insider trading; improper touting; market manipulation; broker-dealer fraud; and violations of the Foreign Corrupt Practices Act, Investment Company Act, and Investment Advisers Act. • Teaches Securities Regulation as an adjunct professor at the George Washington University Law School.

7. Vince McKnight Biography • Vincent “Vince” McKnight, Jr., is the Managing Partner of Sanford Heisler Sharp’s Washington, D.C., office and Co-Chair of the firm’s Whistleblower Practice. • Represents whistleblowers in sealed and unsealed False Claims Act/qui tam suits under investigation by the United States and other governmental stakeholders. Also represents clients in employment discrimination and wrongful discharge cases. • Represented whistleblowers in a series of actions alleging that office products companies (Staples, Office Depot) were illegally selling products from non-compliant countries such as China to the U.S. government in violation of the Trade Agreements Act and General Services Administration (GSA) policies. • Served as co-lead counsel for a whistleblower who was the Government Contracting Director for Network Appliance (NetApp) in a matter that resulted in the then-largest GSA procurement fraud settlement in history. • Served as faculty at the ABA’s Annual National Institute on the False Claims Act and Qui Tam Enforcement and he has participated as a panelist at conferences hosted by Taxpayers Against Fraud and the Practicing Lawyers Institute focusing on issues under the False Claims Act.

8. Jordi de Llano • Involvement • Get U.S. Attorney’s Office involved as early as possible, especially for potential criminal cases, to avoid separate investigations being conducted. U.S. Attorney’s Office gets 1-2 criminal cases per year. • Whistleblower’s Confidentiality and Credibility • U.S. Attorney’s Office is statutorily obligated to maintain a whistleblower’s confidentiality. • Evidence that would enhance a whistleblower’s credibility include proof that the whistleblower witnessed discussions of the fraud, emails, and other written documentation. • Relationship with other Agencies • U.S. Attorney’s Office works with and has fruitful relationships with SEC and CFTC, among other agencies. • Relationship with the States • U.S. Attorney’s Office has a tough relationship with the state of Massachusetts. Timing is an issue. • Better relationship with Kentucky than Massachusetts.

9. Paul Hayeck • Overlap with other Agencies • CFTC has some overlap with SEC and other agencies, but work with SEC mainly. • Investment pools, commodities, and other products that range in both jurisdictions (CFTC and SEC). • We encourage people to reach out and have a conversation with us to see if they are dealing with securities. • If you need to send communications to CFTC and another agency, it would be helpful for each to receive such communications separately – saves us an extra step. • Caseload • CFTC is getting busier and our caseload has increased a lot. • Part of how we handle such a large caseload is by working cooperatively with the Department of Justice. • Enforcement Decisions • We try to keep our enforcement decisions distinct from timing. • We will coordinate with DOJ when appropriate. • Often times, our penalties go to different places; if we assess penalties to individuals, they go to the Treasury. • Whistleblower’s Confidentiality and Credibility • We will maintain a whistleblower’s credibility and try to establish their credibility. • Jurisdiction • We get a lot of whistleblower complaints that are clearly securities related. Takes a lot of leg work to sort out correct jurisdiction, so the more clarity there is up front, the better.

10. William Jauquet • Role of the OCC • Charters, regulates, and supervises all national banks and federal savings associations and supervises and licenses federal branches and agencies of foreign banks. • Ensures these institutions operate in a safe and sound manner, provide fair access to financial services, treat customers fairly, and comply with applicable laws and regulations. • Examines/supervises 1,220 financial institutions • OCC Enforcement • The OCC’s enforcement is entirely civil and covers both institutions and officers and employees of institutions. • All penalties the OCC assesses go by statute to the U.S. Treasury. • Coordinates and communicates regularly with government agencies but keeps decision making distinct. A primary consideration in brining an enforcement action is always the safety and soundness of the intuition and the banking system. • Example of Enforcement case: In re Daniel Weiss – OCC AA-EC-2018-95 • Confidential Supervisory Information (CSI) • The OCC’s communication with supervised institutions is protected and confidential • Whistleblowers should not take or keep OCC CSI. See 12 C.F.R. Part 4 • Coordination with Other Agencies • Regularly coordinates and communicates with DOJ and various US Attorney’s Offices related to investigations and enforcement actions. • Also routinely coordinates with other federal agencies including FinCEN, SEC, CFPB, and other federal banking agencies - FDIC and FRB.

11. Rami Sibay Relationships With Other Agencies • Extensive experience working alongside DOJ, USAOs, CFTC, Federal Reserve, FTC, Department of Education, and others. • If you think we may have jurisdiction, we encourage you to contact us. • Investigative expertise • Subject matter expertise • Benefits of being SEC whistleblower include confidentiality and protection against retaliation. What Attorneys Can Do To Be More Helpful • The more specific the tip, the better. • Time is of the essence – but the process can be iterative. • Consider other sources of information: • how best to obtain relevant documents • other witnesses who may have relevant information • Please keep privileges in mind. • Please understand information sharing is a one-way street and that our limited resources prohibit us from pursuing every potential violation. The Securities and Exchange Commission disclaims responsibility for any private publication or statement of any SEC employee or Commissioner.  This outline and Rami Sibay’s remarks express his views and do not necessarily reflect those of the Commission, the Commissioners, or other members of the Commission staff.

12. Questions • We will reserve the last few minutes to answer any questions.

13. Additional Written Materials • DOJ • Fraud Section Year in Review 2018 • OCC • Bank Supervision Process, Comptroller’s Handbook • In re Daniel Weiss – OCC AA-EC-2018-95 – Notice of Charges • SEC • Whistleblower Regulations • Annual Report – Division of Enforcement • CFTC • Whistleblower Program – Frequently Asked Questions