New International Focus On Prosecution Of White-Collar Crime

The use of aggressive techniques such as wiretaps in the pursuit of white-collar criminals has greatly expanded the scope of white-collar investigations. U.S. Attorney for the Southern District of New York, Preet Bharara, commonsensically noted that insider trading is a "crime of communication...[and] it doesn't take a rocket scientist to appreciate that if you actually have the communication, you're more able to prove the conduct." ("Bharara Sees Schemes Grow as White Collar Unit Turns 50," Bloomberg, Sept. 13, 2012). Moreover, in today's business world, these "crime[s] of communication" often cross international lines.

Obviously, any prosecution under the Foreign Corrupt Practices Act is international by definition, and the number of prosecutions with a focus on such foreign corrupt practices continues to grow. However, insider trading and other types of white-collar crime have followed suit. As a recent example, U.S. citizen Kareem Serageldin was arrested in London on Sept. 27 for his alleged participation in a reported $3 billion fraud involving subprime mortgage bonds. He is reportedly fighting extradition. ("Ex-Credit Suisse Trader to Fight U.S. Extradition," Reuters, Sept. 27, 2012, available at http://www.reuters.com/article/2012/09/27/us-creditsuisse-serageldin-idUSBRE88Q16420120927).

And in the LIBOR investigations, U.S. law enforcement officials are reportedly seeking to interview "dozens of bankers" in the United Kingdom, which will likely lead to rampant extradition requests should these investigations lead to charges. ("U.S. Libor Probers Said to Seek London Trader Interviews," Bloomberg, Sept. 27, 2012, available at http://www.bloomberg.com/news/2012-09-27/u-s-libor-probers-said-to-seek-london-trader-interviews.html).

The international nature of these cases adds legal complexities not present in traditional domestic cases. Attorneys confront different standards before U.S. courts in their efforts to contest evidence or protect a defendant's constitutional rights, which have largely been shaped by terrorism and drug trafficking cases.

Extradition and Investigation

The legal complexities particular to international white-collar cases begin with the extradition request itself. Fighting extradition is an extremely complex and difficult prospect. Challenging extradition in the United States before an individual has been extradited is almost a non-starter, and once an individual has been extradited, U.S. courts are reluctant to...