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By: Ali Darvish, Brian Frey, Paul Monnin, Stephen Simrill, Albert Stieglitz, Jr., Heather Wyckoff - Alston & Bird
The DOJ declined to prosecute a private equity firm for its portfolio company's pre-acquisition sanctions and export violations, marking the first application of the National Security Division's M&A Policy. Our White Collar, Government & Internal Investigations Team and Investment Funds Team examine what it means for corporate criminal enforcement in the national security space, particularly in the M&A context.
- The DOJ credited the acquirer's "timely" self-disclosure, even though it occurred 10 months after closing
- Other key factors included "exceptional and proactive" cooperation and rapid remediation
- The acquired company and former CEO were subjected to criminal enforcement actions
On June 16, 2025, the U.S. Department of Justice (DOJ) announced that it had declined to prosecute a private equity firm for its acquired portfolio company's sanctions and export violations between 2014 and 2021. The declination marks the first application by the DOJ's National Security Division (NSD) of its Mergers & Acquisitions Policy, issued in March 2024 as part of its Enforcement Policy for Business Organizations.
Background
From 2014 to 2021, the portfolio company engaged in at least 23 sales of chemical catalysts to customers in Iran, Venezuela, Syria, and Cuba - transaction...................... To view our full article Click here
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