From left, Jay E. Town, U.S. attorney for the Northern District of Alabama, Charles E. Peeler, U.S. attorney for the Middle District Georgia, and Bobby Christine, U.S. attorney for the Southern District Georgia were part of a panel discussing "White Collar Enforcement Under New Department of Justice Leadership: What Areas Should Practitioners Look For?" The session was moderated by BJ Pak, U.S. attorney for the Northern District of Georgia. The panel discussion was part of the 2019 ABA Southeastern White Collar Crime Institute held at Chateau Elan Winery and Resort outside of Atlanta. Photo by John Disney/ALM

Fast action to shut down health care fraudsters, tight scrutiny of military contractors, and continued pressure on pill mills were some of the areas federal prosecutors in Georgia and Alabama said they've been focusing on under new leadership at the U.S. Department of Justice. 

A panel discussion among the U.S. attorneys from all three Georgia districts, and Northern Alabama, indicated that each district has ramped up interagency cooperation and is working to make sure that renewed attention to crimes involving violence and gangs doesn't let other bad actors slip through the cracks. 

The discussion came during last week's White Collar Crime Institute at Chateau Elan in Braselton, which was moderated by Bjay Pak, the U.S. attorney for Georgia's northern district. Just a few days earlier, Pak had announced that Atlanta's former contract compliance officer had pleaded guilty to wire and tax fraud as part of a long-running investigation into corruption at City Hall. 

Pak did not directly allude to that investigation in his comments, but he and the other USAs emphasized early and complete disclosure as key for anyone who suspects they may be targeted by investigators. 

Pak told the defense lawyers listening that their clients should take the receipt of letters seeking their cooperation as good news, and not wait for a subpoena.

"If they get a subpoena, the case is solid—we've already got the data," he said.

"Your clients should involve law enforcement sooner rather than later," advised Georgia Middle District prosecutor Charlie Peeler.

Last year's revision of the 2015 "Yates Memo" did not significantly change the way his office does business, said Southern District USA Bobby Christine. That memo, established by then-Deputy Attorney General Sally Yates, required companies to provide all relevant information about anyone potentially involved in wrongdoing to receive any cooperation from the DOJ. The doctrine was slightly loosened last year to include only those "substantially" involved.

"We look across the spectrum" of involvement in such activity, he said, "and we absolutely look at the cooperation we get."

Alabama Northern District Attorney Jay Town said his office had no desire to shut down or penalize companies for the behavior of a few wrongdoers.

"Individuals are the bad actors," said Town, while in most cases "there's a bunch of good people just doing their jobs." 

Companies should be prepared to invite law enforcement in when "bad news comes their way," said Christine. "It's not going to get better."

"We still focus on the individuals, then look at whether to charge the corporation," said Peeler. 

The key question is "was there a voluntary, timely disclosure of all the relevant facts?"

In characterizing their normal white-collar caseloads, Christine said his office has "reinvigorated parallel proceedings," combining his asset forfeiture and financial units, and launched multiple health care fraud investigations involving pharmacists, physicians and other professionals.

"We've had 20 civil settlements, mostly False Claims Act classes, and recovered more than $15 million," Christine said, while the first health care fraud trial his office handled in some time resulted in a 10-year sentence for defendant and recovered more than $1 million.

His office also handles a lot of military contracting fraud cases, and last month sent the last of seven defendants—an Army colonel—to prison for defrauding the Small Business Administration. 

Peeler, whose district is mostly rural with four military bases, said pill mills and health care fraud—particularly targeting the large elderly population—are among his top concerns, but hacking cases are on the rise.

He said white-collar crime makes up about 10% of his caseload.

"The No. 1 issue is conduct that jeopardizes health and safety," Peeler said, which includes prosecuting internet scammers preying on the elderly and educating that community about online security. 

Town said that he found his department was involved in a two-and-a-half-year health care fraud investigation that had still yielded no indictment when he came aboard as USA in 2017.

"I said, 'Shut it down or indict,'" recalled Town, who shifted the department's emphasis to speedy investigations and a goal to "disrupt these operations any way we can."

"If we can shut down a doctor's office or pharmacy in four or five months, that's what we do," said Towns. "He may not get 20 years, maybe five; but he's lost his license, he's out of business."

Pak said public corruption, health care and procurement fraud are "red hot" in his office, while Internal Revenue Service tax fraud cases are also ramping up. 

Pak and Christine both said intellectual property theft and hacking, mainly by China, are also a grave concern.

Christine noted that Fort Gordon is the home of the Army Cyber Command, while nearby  Augusta University has partnered with the National Security Agency for its cyber education program.

Noting that Augusta is "exploding" with an influx of cyber-related companies and contractors looking to cash in, Christine said that boom is also a sweet target for hackers and thieves. 

"The amount of skulduggery and opportunity they see to steal from these facilities is dramatic," said Christine, describing himself "terrified" by the potential damage.