Welcome to the inaugural issue of The BR Investigations and Enforcement Forum (“B.R.I.E.F.”), Blank Rome’s monthly newsletter highlighting enforcement priorities and compliance risk issues impacting businesses domestically and abroad. B.R.I.E.F. delivers concise insights into boardroom resilience, regulatory and sanctions developments, internal investigations, enforcement trends, and evolving financial crime risks. We invite you to share this resource with colleagues and visit our White Collar Defense & Investigations webpage to learn more about our team.

Recent Developments

Department of Justice Releases First-Ever Corporate Enforcement Policy for All Criminal Cases

On March 10, 2026, the Department of Justice (“DOJ”) announced that it was releasing its first-ever nation-wide corporate enforcement policy. For the first time, DOJ nationwide policy that supersedes policies issued by districts across the country representing a centralization of DOJ policy in Washington.  The policy aims to incentivize corporate responsibility and voluntary self-disclosure in an effort to quickly hold accountable wrongdoers and reduce resources needed to remediate misconduct. DOJ will decline to prosecute companies that voluntarily disclose misconduct and meet other factors outlined in the policy and offer reduced penalties for companies with “near miss” voluntary self-disclosures. The full policy can be found here.

U.S. Supreme Court Is Asked to Limit Securities and Exchange Commission Disgorgement Orders

On January 9, 2026, the Supreme Court agreed to hear Sripetch v. U.S. Securities and Exchange Commission (“SEC”), a case questioning whether the SEC must prove investor harm to obtain disgorgement in securities fraud cases. The Ninth Circuit upheld disgorgement without proof of harm, diverging from the Second Circuit’s 2023 position requiring such proof. Briefs are due in February and March, with oral arguments set for April 20, 2026.

The Commodity Futures Trading Commission Focuses on Prediction Markets

  • Enforcement cases. The Commodity Futures Trading Commission (“CFTC’s”) division of enforcement announced that it brought two enforcement cases involving misuse of nonpublic information and fraud regarding prediction markets traded on KalshiEX (“Kalshi”), a Designated Contract Market (“DCM”). One case involved a political candidate trading on his own candidacy, while the other concerned an individual who made trades relating to a YouTube channel based on non-public information obtained through his employment. While Kalshi’s internal enforcement program handled both matters, the CFTC emphasized its authority over illegal trading on all DCMs.   
  • Proposed Rulemaking. Several weeks later, the CFTC released an advanced notice of proposed rulemaking regarding prediction market regulation. Among other issues, the agency seeks feedback on whether the DCMs should be allowed to offer trading on margin, what kinds of contracts should be prohibited on a public interest basis, and whether some individuals should be banned from trading on certain events due to their insider knowledge. The CFTC also issued staff guidance advising platforms to determine whether certain types of betting run the risk of being manipulated and distorted, as these are prohibited from listing under the Commodity Exchange Act.

Potential Changes to Sentencing Guidelines

Proposed new amendments may result in shorter prison sentences by updating loss calculations for financial crimes and providing a first-of-its-kind path to reward defendants for post-offense, pre-sentence rehabilitative efforts. Proposed changes would update loss calculations for inflation, simplify how losses and offense characteristics are assessed, expand options for non-prison sentences, and encourage judges to reduce sentences for rehabilitated defendants.

Trade Fraud Task Force Selects Chicago U. S. Attorney’s Office as Leading Prosecutorial Partner

In February 2026, the DOJ announced that it had selected the U.S. Attorney’s Office for the Northern District of Illinois (“NDI”) to serve as a lead prosecutorial partner for the Trade Fraud Task Force (“TFTF”). The NDI Office will be closely supported by DOJ attorneys and agents from Homeland Security Investigations (“HSI") and the Environmental Protection Agency (“EPA”). Chicago, which sits within the NDI and is a central hub for U.S. trade, offers strategic advantages for trade fraud prosecutions. Under federal law, any offense involving the importation of an object may be investigated and prosecuted in any district from, through, or into which the imported object or person moves. Read our client alert about this development here. 

SEC’s Division of Enforcement Announces Updates to Enforcement Manual

On February 24, 2026, the SEC announced significant updates to its Enforcement Manual, which has not been updated since 2017. Changes affect three significant areas: Wells procedures, cooperation credit, and settlement decision-making. These changes have immediate implications for defense strategy. 

The updated Wells procedure promotes open dialogue between the SEC and potential respondents and defendants. A recipient of a Wells notice has four weeks to make a submission, after which a Wells meeting will be scheduled within the next four weeks. The updated manual also allows the Commission simultaneous consideration of settlement offers and waiver requests related to the underlying enforcement action and clarifies how cooperation affects civil penalties.

SEC and CFTC Announce Historic Memorandum of Understanding Between Agencies

In March 2026, the SEC and CFTC announced that they have entered into a Memorandum of Understanding. This memorandum signals increased inter-agency coordination in complex financial misconduct and investigations with the goal of increased investor and customer protection. The agencies also created a Joint Harmonization Initiative to promote clarity and coordination in common regulatory interest between the agencies. 

Prosecutors Still Focusing on Individual Accountability, Even Where Companies Receive Favorable Resolutions

The DOJ recently announced several prosecutions of individual executives in cases where the company received a favorable resolution, emphasizing prosecutors’ focus on individual accountability. For example, a former vice president of Corsa Coal Corporation was convicted by a jury in February 2026 for his role in bribing Egyptian government officials, while the investigation against Corsa Coal Corporation was resolved in March 2023 through a declination and the disgorgement of profits. And in March 2026, a former California executive was charged with his role in intending to defraud the Food and Drug Administration, and the ExThera Medical Corporation entered into a three-year deferred prosecution agreement with DOJ. 

Former Coal Company Executive Convicted 

A federal jury convicted former Corsa Coal vice president Charles Hunter Hobson for bribing Egyptian officials to secure nearly $140 million in coal supply contracts. Hobson disguised payments as “sales commissions” connected to transactions with Al Nasr Company for Coke and Chemicals and routed funds through U.S. and United Arab Emirates (“UAE”) bank accounts, receiving secret kickbacks. Hobson was convicted of conspiracy to violate the Foreign Corruption Practices Act (“FCPA”), violating the FCPA, conspiracy to commit money laundering, money laundering, and conspiracy to commit wire fraud. DOJ officials emphasized his actions undermined fair competition and violated both U.S. and Egyptian law.  

Senate Democrats Introduce FCPA Reinforcement Act, Signaling Potential Future Enforcement Risk

Senate Democrats have introduced the FCPA Reinforcement Act in response to what they describe as the Trump administration’s scaled‑back enforcement of the FCPA. The bill would expand the statute of limitations for criminal FCPA anti‑bribery violations from five to 10 years, ensuring that misconduct occurring during periods of reduced enforcement can still be pursued by future administrations. Lawmakers emphasize that the legislation is meant to signal to businesses that compliance expectations remain high and that foreign bribery allegations may still face scrutiny years down the road. 

DOJ Fraud Section Reporting Highlights Continued Emphasis on Cross‑Border Fraud, Cartel‑Linked Corruption, and National Security 

The DOJ Fraud Section’s 2025 Year in Review touts what DOJ characterizes as an expanding enforcement footprint, marked by record levels of prosecutions and a growing emphasis on schemes that cross borders or intersect with global criminal networks. Enforcement officials highlighted that fraud involving cartels, transnational criminal organizations, and corruption tied to state‑linked actors remains a top investigative priority, particularly where such conduct implicates U.S. economic or national security interests. Recent guidance also shows a heightened focus on misconduct facilitated through intermediaries such as money launderers, shell companies, or foreign officials connected to cartel operations. These trends signal that multinational companies should expect continued scrutiny in cross‑border matters, especially in regions such as Latin America where organized criminal networks exert significant influence.

DOJ Resolves Long-Running Halkbank Sanctions Prosecution through Deferred Prosecution Agreement

DOJ ended its long‑running sanctions prosecution of Turkish state‑owned Halkbank through a deferred prosecution agreement that imposes compliance obligations but no financial penalty. The bank must avoid any transactions benefiting Iran and submit to a third-party review of its current sanctions and anti‑money‑laundering controls. The outcome was influenced by diplomatic and national security concerns, closing a sensitive case and showing that sanctions enforcement may be resolved through tailored, security‑driven remedies, even in high‑profile matters.

In Case You Missed It...

AI, Privilege, and Work Product: Conflicting Federal Decisions Create a New Risk Frontier

Blank Rome partners Sharon R. Klein and Naomi Zwillenberg authored this alert regarding two recent federal court decisions which reached sharply divergent conclusions on whether materials generated using artificial intelligence platforms are protected by the attorney-client privilege or the work product doctrine. Read more >>

DOJ Selects Chicago U.S. Attorney's Office as Leading Prosecutorial Partner on Trade Fraud Task Force

Blank Rome partners Anthony Rapa, Jennifer A. Short, Bradley L. Henry, and associate Michael J. Schmandt authored this alert on the U.S. Department of Justice’s announcement that they have selected the U.S. Attorney’s Office for the Northern District of Illinois to serve as a lead prosecutorial partner for the cross-agency Trade Fraud Task Force, which launched in late August 2025. Read more >>

U.S. Attorney for the Eastern District of Pennsylvania David Metcalf Promotes White-Collar Justice Program and Signals Emphasis on White Collar Enforcement in the District

Blank Rome partners Joseph G. Poluka, Jennifer A. Short, and associate Rebecca L. Orel authored this alert discussing the U.S. Attorney’s Office for the Eastern District of Pennsylvania’s announcement of the implementation of its White-Collar Justice Program in September 2025, a move that reaffirmed the office’s public commitment to white collar enforcement under newly-appointed U.S. Attorney David Metcalf. Read more >>

Upcoming Events

Key Considerations Regarding an Audit Committee or Special Committee Investigation: The Outside Counsel’s Perspective (2026)

Blank Rome partner Jennifer L. Achilles will serve as a panelist for the Practising Law Institute’s (“PLI”) Audit Committees, Special Committees, and Internal Investigations 2026 program, being held in New York, New York, on Tuesday, March 31, 2026, from 9:00 a.m. to 4:45 p.m. Read More >>

© 2026 Blank Rome LLP. All rights reserved. Please contact Blank Rome for permission to reprint. Notice: The purpose of this update is to identify select developments that may be of interest to readers. The information contained herein is abridged and summarized from various sources, the accuracy and completeness of which cannot be assured. This update should not be construed as legal advice or opinion, and is not a substitute for the advice of counsel.