Michelle Rogers Quoted in Compliance Week Article, "FCA's Reach, Power Only Get Bigger"Michelle L. Rogers
Michelle Rogers was quoted in Jaclyn Jaeger's Compliance Week article, "FCA’s Reach, Power Only Get Bigger," on January 21, 2015.
The scope of FCA enforcement doesn’t apply to just big banks. “Any financial institution that participates in a government program is susceptible to claims that they violated the FCA,” says Michelle Rogers, a partner with law firm Buckley Sandler LLP.
The Justice Department has said it will continue to bring FCA cases in tandem with the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), an old and rarely used law enacted after the savings-and-loan crisis of the 1980s.
FIRREA empowers federal prosecutors to seek civil penalties for a wide range of offenses—mail and wire fraud, bank fraud, and false statements made to the government—that specifically affect federally insured financial institutions. Civil claims brought under the law only have to meet the preponderance-of-evidence standard, rather than the much higher beyond-a-reasonable-doubt threshold that criminal cases require.
More aggressive and expansive enforcement means higher litigation risks, which means in turn more importance placed upon compliance with the FCA and FIRREA in the first place, rather than leaving the legal department to worry about liability. “I see that expanding much more broadly to include compliance professionals given the current enforcement environment,” says Rogers.