Two women’s apparel companies alleged to have systematically imported goods into the United States without declaring their full value recently settled a civil customs fraud lawsuit with the US Attorney for the Southern District of New York. The settlement required the companies — Dana Kay, Inc. and Siouni & Zar Corporation — to admit responsibility for fraudulent conduct and pay $10 million as damages and penalties under the False Claims Act.
Mary Carter Andrues
Mary’s practice focuses on white collar criminal defense; internal corporate investigations; anti-corruption and bribery compliance, defense and investigations; international and domestic export compliance and enforcement; health care fraud and abuse; and complex commercial litigation.
Mary has extensive experience defending complex white collar criminal cases, particularly in matters involving the Foreign Corrupt Practices Act, export enforcement, including the Arms Export Control Act, International Traffic in Arms Regulations, International Emergency Economic Powers Act, and Export Administration Act, and health care fraud and abuse. She also has successfully represented clients in cases involving government contract and procurement fraud, political corruption, and improper political contributions.
With more than 20 years of trial experience and as a former federal prosecutor, Mary understands the anatomy of a government investigation and she is sensitive to the impact government investigations have on corporate clients. She has represented business entities, hospitals, municipal corporations, corporate executives and employees who have been under criminal investigation or criminally charged. Mary has represented clients appearing before a grand jury, responded to grand jury and administrative subpoenas and civil investigative demands, prepared voluntary disclosures, an FCPA monitor’s report, and negotiated criminal and civil settlements with both federal and state prosecutors. She also has significant experience in parallel criminal and civil proceedings involving the False Claims Act, Anti-kickback statute, export regulations, and U.S. sanctions laws. Recently, Mary has assisted health care providers in developing procedures for protecting patient health care information when responding to subpoenas, search warrants and requests from local, state and federal law enforcement agencies.
Prior to joining Arent Fox, Mary was an Assistant US Attorney in the US Attorney’s Office in the Central District of California, where she served as the Chief of the Public Corruption and Civil Rights Section; and Deputy Chief of the Public Corruption and Government Fraud Section. She also served as Health Care Fraud Coordinator and as a member of the US Department of Justice, Attorney General’s Advisory Committee, Health Care Fraud Subcommittee.
Mary received the Attorney General’s Director’s Award for her role as the lead federal prosecutor in the LAPD Rampart Investigation. She regularly served as an instructor to federal law enforcement agencies and at the US Department of Justice, National Advocacy Training Center.
- Representing several hospitals in federal False Claims Act investigations involving the Anti-kickback Statute; physician-owned distributorships; and Stark violations.
- Represented former wife of professional cyclist in federal investigation into the illicit use of performance enhancing drugs.
- Obtained declination of conflict of interest investigation by Los Angeles District Attorney’s office for hospital district.
- Obtained declination of federal False Claims Act investigation and closure of voluntary disclosure submitted to the Directorate of Defense Trade Controls (“DDTC”) for manufacturer of electronic circuit boards.
- Obtained closure of a directed disclosure by DDTC for manufacturer of firearms accessories.
- Obtained declination of federal and California False Claims Act complaint and dismissal of the underlying whistleblower complaint on behalf of municipal corporation.
- Represented clients in filing voluntary disclosures to the DDTC and Bureau of Industry and Security, and mandatory disclosures to the Department of Defense OIG.
- Representing local developer in state corruption case.
- Conducted nationwide and international investigations involving Foreign Corrupt Practices Act, government fraud, export violations, and violations of U.S. sanctions laws.
- Represented and obtained favorable settlement for freight forwarder involved in Anti-kickback investigation.
- Acted as pool and individual counsel in state and federal criminal and civil fraud investigations.
Mary’s professional affiliations include:
- Lawyer Representative, Ninth Circuit Judicial Conference (2011 to present)
- Federal Bar Association, Los Angeles Chapter, Executive Board President (2010 to 2011) President-elect (2009 to 2010), Treasurer (2008 to 2009), Secretary (2007 to 2008), Current Board Member
- Los Angeles County Bar Association, Judicial Appointments Committee (2011 to present)
- American Bar Association, Criminal Justice Section White Collar Crime Committee: Foreign Corrupt Practices Act and Corporate Responsibility Subcommittees (2011 to present)
- American Bar Association, West Coast White Collar Crime Committee, Co-Chair (2004 to 2006)
- Institute for Corporate Counsel, Executive Board (2009 to 2012)
- Los Angeles County Bar Association, Member
- American Bar Association, Member
- Executive Committee, Afghan Public Private Partnership (2009 to 2012)
Publications, Presentations and Recognitions
Mary was recognized by Best Lawyers in America in 2013 and 2014 for her achievements in Criminal Defense: White Collar, and has been recognized by the Southern California edition of Super Lawyer as a 2012 Top Women Attorney.
Mary was chosen as the “Pro Bono Attorney of the Year” by the University of Southern California Public Interest Law Foundation in 2009.
Mary’s published works and speaking engagements include:
- “What to Do if You Suspect or Discover an ITAR Violation: When and How to Investigate, Prepare a Voluntary Disclosure and Implement Remedial Measures” and “ITAR Compliance Program Do’s and Don’ts: Core Elements of Effective Compliance Manuals, Policies and Procedures,” American Conference Institute, ITAR Boot Camp West, San Diego, CA; February, 2014
- “How Companies are Strengthening Their False Claims and Qui Tam Risk Management Approach: A Practical Panel on How to Refine Your Internal Compliance Strategy and Design an Effective Whistleblower Program," American Conference Institute, Advanced Forum on False Claims & Qui Tam Enforcement, New York, NY; January 2014
- “Expanding use of False Claims Act in international arena,” Daily Journal; April 2013
- “Money Laundering, Remitting & Export Control,” ABA 2012 International White Collar Crime Conference, London, England; October 2012
- “Managing an FCPA Investigation and Prosecution,” 7th FCPA & Anti Corruption Compliance Conference, San Francisco, CA; September 2011
- “International Government Investigations, SEC Whistleblowers, and Private Fellow On Actions: Playing Chess on Multiple Boards,” ABA 2011 Annual Meeting, Toronto, Canada; August 2011
- “Defending the Individual in FCPA Cases: Managing the Company, Dealing with the Facts,” National Association of Criminal Defense Lawyers’ West Coast White Collar Conference, Lake Tahoe, NV; June 2011
- “False Claims and ITAR - A Lethal Combination,” Law360; February 2011
- “ITAR Enforcement Update and Q&A” and “What to Do if You Suspect or Discover a Violation: When and How to Investigate, Prepare a Voluntary Disclosure and Implement Remedial Measures,” American Conference Institute, ITAR Boot Camp; February 2011
- “Increasing Government Scrutiny of Pharmaceutical Executives,” Arent Fox LLP Client Alert; December 2010, co-author
- “FCPA Shouldn’t Be Platform For Derivative Litigation,” Law360; November 2010
- “Fueling FCPA Enforcement,” Law360; October 2010
- White Collar Defense Roundtable, California Lawyer; July 2010
- “What to Do When Agents Show Up At Your Door,” American Conference Institute, Export Enforcement & Investigations; January 2010
- “Deemed Export Enforcement: The Anatomy of a ‘Good’ Intangible Case and Why More Cases are Expected,” American Conference Institute, Export Enforcement and Investigations; January 2009
- “Internal Affairs,” Los Angeles Daily Journal; July 2009, co-author
- “Export Crimes,” American Bar Association Annual National Institute on White Collar Crime; March 2008
- “Politics and Prosecutors: Maintaining the Independence of Federal Prosecutors,” Federal Bar Association & American Bar Association, West Coast Regional White Collar Crime Committee; February 2008
- “Anatomy of a Good Export Case: How Prosecutors Assess a Violation,” American Conference Institute, Export Enforcement & Investigations; January 2008
- “When the Department of Justice Comes Calling,” Institute for Corporate Counsel; October 2007
- “Export Enforcement & Investigations, Knowledge and Intent: The Prosecutors’ Perspective On What the Government Needs to Prove at Trial,” American Conference Institute; December 2006
- “Federal Sentencing Guidelines,” Federal Bar Association; September 2003
- “Crossfire Redux - A Dialogue Between the United States Attorneys Office and the Criminal Defense Bar,” American Bar Association, West Coast Regional White Collar Crime Committee; July 2000
Blog Posts by Mary Carter Andrues
ABOUT ARENT FOX LLP
Arent Fox LLP, founded in 1942, is internationally recognized in core practice areas where business and government intersect. With more than 350 lawyers, the firm provides strategic legal counsel and multidisciplinary solutions to clients that range from Fortune 500 corporations to trade associations. The firm has offices in Los Angeles, New York, San Francisco, and Washington, DC.