PRESS RELEASE
January 24, 2007
For immediate distribution
Contact: Teruca Solá
787-250-5150
McConnell Valdés ESTABLISHES A GOVERNMENT ENFORCEMENT AND WHITE COLLAR DEFENSE PRACTICE AREA
San Juan, Puerto Rico - The managing partner of McConnell Valdés, Arturo García Solá, announced today the establishment of the firm's Government Enforcement and White Collar Defense Practice Area, thereby making McConnell Valdés the first corporate law firm in Puerto Rico with the resources to assist its clients to deal effectively with the government enforcement, compliance, and white collar crime issues facing businesses today.
"One of the keys to the longevity of McConnell Valdés and it success for over 60 years is a philosophy centered on constant innovation and keeping-up with the most recent developments in meeting the needs of our clients. The establishment of the Government Enforcement and White Collar Defense Practice Area responds to that philosophy," said García Solá.
With the legacy of Enron, Arthur Andersen and WorldCom and the passage of the Sarbanes-Oxley Act in 2002, corporate governance, fraud and regulatory compliance has become an increasing concern to businesses. The historic Sarbanes-Oxley Act of 2002 created serious criminal penalties for CEOs who sign financial information deemed to be untrue or who omit information considered to be material.
Corporate fraud can cost companies billions of dollars in losses and involves substantial criminal penalties not only for the perpetrators of the crime but for directors and officers as well. Because corporate managers have a duty to implement and monitor internal controls to ensure that regulatory violations do not occur, corporate directors and officers may face criminal penalties regardless of their actual participation and/or culpability in the underlying criminal offense.
White collar crime goes beyond financial reporting and securities fraud. It includes embezzlement, money laundering, bank fraud, insurance fraud, tax fraud, RICO crimes and environmental violations.
A recent trend in white collar crime investigations is that they involve more than one company in an industry under the premise that if one company is engaged in a wrongful practice, its competitors are probably engaged in that practice as well. Therefore, the likelihood that any company can become the object of a white collar crime investigation has increased.
In 2005 The Wall Street Journal reported that the FBI launched a probe into the accounting practices of the insurance industry and some analysts identified the insurance industry as the new priority in the battle to fight financial crimes.
Moreover, according to García Solá, "the recent emphasis on combating financial crimes as a law enforcement priority is now placing FBI agents at the lobbies of corporate offices and CEO and CFOs at Grand Jury rooms. We wanted to make sure that we could provide our clients with the best counsel available to prevent such occurrences, when possible, and to afford them the best possible representation if necessary. With the attorneys in our Government Enforcement and White Collar Defense Practice Area, McConnell Valdés is prepared to do just that."
Ms. Torres is the former Chief of the Criminal Division of the United States Attorney's Office for the District of Puerto Rico, where she was responsible for the supervision of three prosecutorial units: white collar, violent crimes, narcotics and money laundering. Her experience includes litigation and investigation of money laundering, investment fraud, financial fraud, ERISA embezzlement schemes, federal program fraud, union dues embezzlement schemes, mail and wire fraud, and immigration cases. She has vast experience arguing cases before the first circuit court of appeals.
Ms. Meléndez-Rivera was the Deputy Chief of the White Collar Crime Unit of the United States Attorney's Office for the District of Puerto Rico. During her tenure she investigated and supervised complex white collar crime cases and violent crime cases. Her experience includes litigation and investigation in the areas of financial fraud crimes, money laundering, public corruption, health care fraud, ERISA and other types of embezzlement schemes, fraudulent investment schemes, civil RICO claims, intellectual property crimes, child pornography, environmental crimes, torts, and products liability, among others.
Prior to joining the United States Attorney's Office, Ms. Meléndez-Rivera was a litigation partner at McConnell Valdés, where she began her professional career in 1986.
Prior to joining McConnell Valdés in 2006, Ms. Rivera Cintrón was the Director of Legal Affairs of the Office of the Insurance Commissioner of Puerto Rico, served as Legal Counsel of the Commissioner of Financial Institutions of Puerto Rico, and was Assistant District Attorney in the While Collar Crimes Division of the Puerto Rico Department of Justice.
McConnell Valdés is one of the oldest law firms in Puerto Rico. It was founded in 1946 and since then it has been recognized for the excellence of its services in various areas of the law. Its client portfolio includes many of the most successful companies in every segment of Puerto Rico's economy and many "Fortune 500" companies. Moreover, McConnell Valdés has been widely recognized for its civic and philanthropic work in the Island as well its contributions to Puerto Rico art and culture.
