By Andrew W. Schilling, Compliance Complete contributing author
The U.S. Department of Justice has increased its use of the Financial Institutions Reform, Recovery, and Enforcement Act(FIRREA) to prosecute wrong-doing by financial firms. Accordingly, more institutions may find themselves having to deal with a subpoena under the act, including those that are directly targeted under the act. In-house counsel would be well advised to familiarize themselves with the statute and to respond to such subpoenas cautiously.
Responding to subpoenas has become routine business for in-house counsel at financial institutions, whose records are often necessary to “follow the money” in fraud prosecutions and civil lawsuits. (more…)