International Sanctions and White Collar Criminal Defense

We counsel companies and individuals on a wide array of issues arising under the Office of Foreign Assets Control (OFAC) sanctions programs, including both nation-based and conduct-based sanctions.

For more than a century, the United States has used trade restrictions on foreign nations and individuals to promote the foreign policy objectives of the United States. The task of implementing sanctions now falls to OFAC. Generally speaking, the President, in accordance with statute, will issue an Executive Order designating some country, company or individual as subject to sanctions. OFAC will then issue guidance with respect to the Executive Order and any Specially Designated Nationals (SDNs).  American entities are then prohibited from conducting business with those entities under most circumstances.

Although the sanctions prohibit American entities from engaging in commercial transactions with SDNs, they can have a much broader effect. Secondary sanctions apply to entirely non-U.S. entities operating completely outside the territorial jurisdiction of the U.S.  Entities that deal with SDN’s can themselves become SDNs or Foreign Sanctions Evaders (FSE).  Once an entity is identified as a SDN or a FSE, Americans are prohibited from conducting business with that entity, as well.

We are experienced advisors on:

  • Compliance and general sanctions in connection with Office of Foreign Assets Control (OFAC) sanctions programs, including both nation-based and conduct-based sanctions;
  • Obtaining special licenses and unfreezing assets;
  • Removal from “Specially Designated Nationals” (SDN) lists; and
  • Defense in civil and criminal sanctions enforcement actions.

In what are often related matters, we also have significant experience representing clients in international white collar criminal defense matters, including:
  • Alleged violations of the Foreign Corrupt Practices Act (FCPA);
  • Investment frauds and schemes;
  • Money laundering;
  • Human trafficking; and 
  • Internal investigations.

  • Conducting an internal investigation for large multinational non-profit, identifying and remedying potential issues, and creating a compliance program.
  • Representing a Chinese national in an alleged industrial espionage case and obtaining dismissal of count related to Interstate theft of intellectual property.
  • Representing a NASA engineer in alleged software piracy case involving millions of dollars of loss; case resulted in a probationary sentence.
  • Representing a European company alleged to have violated consumer fraud statutes which, after extensive negotiations and changes to the company’s compliance program, resulted in a state decision not to pursue criminal charges.
  • Representing a government contractor detained at a military facility in Kabul and accused of diverting sensitive military equipment to the Taliban; the contractor was promptly released.
  • Representing a Middle Eastern corporation before the Office of Foreign Assets Control (OFAC) and successfully obtaining removal of the company from SDN list.
  • Assisting American company in developing OFAC compliance program for operations in the Russian Federation and resolving banking issues involving the transfer of funds from certain Russian entities.
  • Representing a Russian executive of an international company in internal investigation undertaken by the corporation’s outside law firm and U.S. Department of Justice for violations of FCPA; no charges were filed.
  • Retention as an expert witness by a Russian law Firm to analyze OFAC sanctions as they apply to a substantial transfer of assets from one Russian bank to another.
  • Representing a Middle Eastern company in a civil fraud suit against an American company, with a trial that resulted in a verdict in excess of 2 million dollars for the client.

Client Alert: DOJ and OFAC Actions Showcase Expansive U.S. Oversight of Foreign Conduct

The U.S. Department of Justice (DOJ) and the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) have recently announced two enforcement actions that demonstrate the U.S. government's aggressive and expansive application of U.S. law to foreign conduct with minimal U.S. nexus. These actions underscore the need for foreign companies and individuals to be aware of and comply with U.S. legal requirements, especially in the areas of anti-corruption and sanctions, and to implement effective compliance programs and controls to mitigate the risk of U.S. enforcement. Our firm has extensive experience and expertise in advising and representing clients on these complex and evolving issues, and we are ready to assist you in navigating the challenges presented by the U.S. regulatory and enforcement landscape.

Client Alert: FTX Fraud Case Highlights Risks and Rewards of Cooperation in Crypto Cases

The recent sentencing of Zixiao "Gary" Wang, a tech expert involved in the $11 billion FTX fraud, underscores the importance of cooperation with authorities in complex and high-stakes crypto cases. Wang, who admitted to helping FTX's founder Sam Bankman-Fried manipulate the code of the bankrupt crypto exchange to siphon off funds from customers and investors, received no jail time but was ordered to forfeit his share of the ill-gotten gains. He was credited for his prompt and substantial cooperation, which included providing crucial information about the code-based ways in which Bankman-Fried committed the fraud and testifying against him at trial.

Client Alert: Foreign Extortion Prevention Act

On December 22, 2023, President Biden signed into law the Foreign Extortion Prevention Act (“FEPA”). FEPA is aimed at the “demand” side of foreign corruption and bribery, making it unlawful for any foreign official to demand a bribe from a U.S. issuer or domestic concern or to make such a demand within the United States. FEPA is intended to serve as a complement to the Foreign Corrupt Practices Act (“FCPA”), which for decades has made it unlawful for a U.S. issuer to offer a bribe to a foreign official in order to obtain an improper business advantage. While the FCPA already addressed the payment of bribes to foreign officials, FEPA now criminalizes the request from foreign officials as well. 

Prominent National Security Attorney Joins Whiteford in Washington

Whiteford is pleased to announce that Dennis M. Fitzpatrick, a seasoned litigator with over 20 years of experience investigating and prosecuting complex criminal cases, leading dozens of sensitive and complicated investigations, both in the U.S. and abroad, has joined the firm as a Partner in Washington, D.C.