A former federal prosecutor, Randy Luskey is an
accomplished trial lawyer who handles a wide range of litigation matters. His
practice focuses on internal investigations, government investigations, class
action defense, white collar criminal defense and complex business litigation.
Randy is engaged by public and private companies, and by
audit and special committees of boards of directors, to conduct internal
investigations. He also represents
companies and individuals in connection with government investigations, as well
as parallel civil and administrative proceedings. Randy also has
extensive experience defending consumer class actions and in cases involving
securities fraud, health care fraud, money laundering, the Telephone Consumer
Protection Act and the False Claims Act.
Randy has first and second chaired seven trials to verdict, and
has briefed and argued appeals before the Ninth Circuit. He advises a
diverse group of technology, banking, pharmaceutical, health care, and emerging
company clients in class actions, regulatory compliance matters and civil and
Almost a year into the new administration, the U.S. Securities and Exchange Commission’s Division of Enforcement released its annual report last week, providing a recap of the SEC’s enforcement results over the past 12 months, as well as some insight into its direction for the coming year. Overall, the report suggests that the SEC will increase its focus on addressing harm to “Main Street” investors and that pursuing individuals will continue to be the rule, not the exception.
During fiscal year 2017, the SEC pursued 754 enforcement actions, 446 of which were “stand-alone” actions (as opposed to “follow-on” actions which seek to bar executives from practicing before the Commission or to deregister public companies). This represents a drop from the prior year in which the SEC pursued 784 enforcement actions, 464 of which were stand-alone actions. The bulk of the Division’s 446 stand-alone actions in FY 2017 focused on issuer advisory issues, issuer reporting, auditing and accounting, securities offerings, and insider trading—all areas that saw a relatively similar number of cases in FY 2016. Actions involving public finance abuse represented the only significant decrease in the number of cases versus the prior year. In FY 2016, the SEC brought nearly 100 public finance abuse actions compared to fewer than 20 in FY 2017. READ MORE
Companies should take notice of a new fraud scheme that has been making the rounds, targeting businesses that regularly make wire transfers. Known as the “Business E-mail Compromise,” or BEC, this scam targets employees responsible for wiring money, instructing them under false pretenses to wire large sums to fraudulent accounts. The Federal Bureau of Investigation estimates that the scam has claimed over 2,000 victims and resulted in losses totaling nearly $215 million since October 2013. In one version of the BEC fraud, the e-mail accounts of high-level business executives (CEO, CFO, CTO, etc.) are compromised by the creation of spoof e-mail addresses. The imposters then use the compromised executive’s e-mail account to send a request for a wire transfer to a second employee within the company who is responsible for processing such requests. This version of the scheme has been referred to as “CEO Fraud” or the “Business Executive Scam.” In another variation of the scam, businesses which have a long-standing relationship with a particular supplier or vendor (i.e. a landlord) receive a spoofed e-mail purportedly from that vendor directing the business to wire funds for invoice payment to an alternate, fraudulent account. This version of the scheme has been referred to as “The Bogus Invoice Scheme” or “The Supplier Swindle.”