Entries by Lisa H. Miller

12 06 '26

Prediction Market “Insider Trading” Revisited: Technology Employee Charged With Using Confidential Corporate Information to Profit from Event Contracts

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On May 27, 2026, the U.S. Attorney’s Office for the Southern District of New York (“SDNY”) and the Commodity Futures Trading Commission(“CFTC”) charged a Google software engineer with allegedly using confidential internal search data to profit from prediction market contracts on Polymarket. The case is the latest example of regulators applying insider trading-style theories outside traditional securities markets and raises important questions regarding confidential business information, prediction markets, and the scope of the CFTC’s enforcement authority.

For companies, the matter underscores increasing scrutiny of trading activity involving confidential corporate information and the need to assess whether existing insider trading and confidentiality policies adequately address emerging trading platforms.

Read the full blog post for an analysis of the allegations, the implications of United States v. Chastain, and key compliance considerations for companies navigating the rapidly evolving prediction market landscape.

05 06 '26

New Clarity Emerges on DOJ’s Fraud Enforcement Reorganization

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In remarks delivered on June 3, 2026, at the American Conference Institute’s Global Anti-Corruption, Ethics & Compliance Conference in New York City, Assistant Attorney General A. Tysen Duva, the head of the U.S. Department of Justice’s (“DOJ”) Criminal Division, provided the clearest public indication to date of how DOJ intends to divide fraud enforcement responsibilities between the Criminal Division’s Fraud Section and the newly created National Fraud Enforcement Division (“NFED”).

Under the emerging structure, NFED will focus on government program fraud, i.e., criminal offenses involving public payers and public systems, including taxpayer-funded programs, while the Criminal Division’s Fraud Section will remain focused on private-sector market, consumer, and corporate fraud matters—a traditional strength of the Unit previously known as Market Integrity & Major Frauds, which will remain part of the Criminal Division. Duva further emphasized that the Fraud Section will be focusing on securities and major financial fraud schemes, global fraud, and prediction markets, and is actively looking to further build capacity by hiring talented lawyers.

The remarks largely confirm earlier expectations that DOJ would eventually provide greater clarity regarding the respective roles of the Criminal Division and NFED following NFED’s creation. We examine what Duva’s comments reveal about DOJ’s enforcement priorities, staffing changes, and the implications for future enforcement activity.

28 05 '26

DOJ Announces Accelerated Review of FCA Qui Tams Alleging Fraud Against State-Administered Benefits Programs

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It is not business as usual at DOJ.  In the latest announcement related to the Department’s efforts to fight alleged fraud, on May 27, 2026, Assistant Attorney General Brett Shumate issued a memorandum directing DOJ’s Civil Division and U.S. Attorneys’ Offices to accelerate the review of qui tams alleging fraud against federally funded state-administered benefits programs, including programs involving housing, food assistance, medical care, and cash assistance.   The memorandum, titled “Accelerating Review and Enhancing Enforcement in Benefits Fraud Matters,” implements President Trump’s March 2026 Executive Order establishing the “Task Force to Eliminate Fraud,” which we reported on here, and which directed the Department to take appropriate action to promote “meritorious” qui tams and to complete investigations sooner, including within the 60-day statutory period.

21 05 '26

Back Before the Fifth Circuit: DOJ Appeals Another FCPA Acquittal

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On May 8, 2026, the U.S. Department of Justice appealed Judge Kenneth Hoyt’s post-verdict acquittal in the FCPA prosecution of Ramón Alexandro Rovirosa Martínez, setting up what could become a significant Fifth Circuit decision on both double jeopardy and the use of translated foreign language evidence in federal criminal trials.

Although a Houston jury convicted Rovirosa in December 2025 on conspiracy and substantive FCPA charges tied to alleged bribery of officials at Mexico’s state-owned oil company, Pemex, Judge Hoyt later vacated the convictions, concluding that the Government’s reliance on certified English translations of Spanish language communications violated the Sixth Amendment’s Confrontation Clause because the translators themselves did not testify.

The appeal raises potentially consequential questions about whether post-verdict acquittals can be reviewed without violating double jeopardy protections, and whether certified translations of foreign language communications are “testimonial” statements requiring live confrontation. This blog post explores those issues and places the appeal in the broader context of the Fifth Circuit’s continuing scrutiny of major FCPA decisions.

12 05 '26

“Don’t Wait”: DOJ Criminal Division Chief Signals Faster Disclosure Expectations and Uptick in Corporate Enforcement

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On May 7, 2026, Assistant Attorney General A. Tysen Duva used his first major speech to the compliance community since DOJ’s March 2026 rollout of its department-wide Corporate Enforcement Policy (CEP) to deliver a clear message: corporate enforcement activity is expected to increase, companies should self-disclose misconduct early—even before completing internal investigations—and robust compliance programs remain central to DOJ’s expectations.

06 05 '26

Ninth Circuit Vacates Insider Trading Conviction Over Court’s Failure to Investigate Juror Bias

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On April 21, 2026, a Ninth Circuit panel vacated an insider trading conviction in United States v. Bolandian, holding that the trial court failed to properly investigate a juror who admitted he was “not sure” he could remain impartial. The case involved a Los Angeles trader accused of profiting from confidential merger tips, resulting in a conviction and 24-month sentence. But on appeal, the court found plain error in allowing the uncertain juror—who ultimately served as foreperson—to remain without further inquiry. Emphasizing the court’s independent duty to ensure juror impartiality, the decision underscores that even without a defense objection, unresolved bias concerns can mandate a new trial—offering both a cautionary note and a safeguard for defense counsel.

05 05 '26

New Division Continues Time-Tested Model: DOJ’s National Fraud Enforcement Division Launches West Coast Health Care Fraud Strike Force

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In another signal that health care fraud enforcement remains a top priority for DOJ, on April 30, 2026, the newly created National Fraud Enforcement Division (the “Fraud Division”) announced the launch of the West Coast Health Care Fraud Strike Force, a multi-district initiative targeting health care fraud across the District of Arizona, the District of Nevada, and the Northern District of California. This expansion is consistent with the time-tested model of Main Justice-based health care matters that has existed since 2007. Like its predecessor strike forces, the West Coast Strike Force will use dedicated agent and prosecutorial resources in the region to combat schemes identified based on data analytics and traditional law enforcement techniques. This announcement is independently notable because it makes clear that while the Health Care Fraud Unit—rebranded as the Health Care Section of the new Fraud Division—is no longer part of the Criminal Division, it will continue with the same career leadership and approach to enforcement: use of data to expand prosecutorial pipelines, solicitation of whistleblowers, and aggressive pursuit of corporate and individual prosecutions.