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TheCorporateCounsel

TheCorporateCounsel.net

A basis for research and practical guidance focusing on federal securities laws, compliance & corporate governance.

DealLawyers

DealLawyers.com

An educational service that provides practical guidance on legal issues involving public and private mergers & acquisitions, joint ventures, private equity – and much more.

CompensationStandards

CompensationStandards.com

The “one stop” resource for information about responsible executive compensation practices & disclosure.

Section16.net

Section16.net

Widely recognized as the premier online research platform providing practical guidance on issues involving Section 16 of the Securities Exchange Act of 1934 and all of its related rules.

PracticalESG

PracticalESG.com

Keeping you in-the-know on environmental, social and governance developments

I did not see this coming.  According to a report from Politico,

“The Trump administration has directed nonprofits involved in a $20 billion Biden-era climate initiative to turn over records to the FBI and appear in federal court later this month, according to two people who were granted anonymity for fear of reprisal. The move marks an escalation in the administration’s effort to claw back the climate money following its assertions that the Environmental Protection Agency had sought to evade oversight by depositing the $20 billion in Citibank accounts in the waning days of President Joe Biden’s term…

At least two groups that had been awarded shares of the funding through EPA’s Greenhouse Gas Reduction Fund received letters this week from acting U.S. Attorney Ed Martin in Washington, directing them to turn over the records to the FBI within two weeks, said the two people, who were familiar with the document demand. The letters asked the groups for their communications with EPA staff and transactions related to the program. The letters also asked the organizations to provide copies of their articles of incorporation and policies and procedures for managing the grants.”

The FBI is investigating organizations in the climate space. Wow. Who knows – maybe there really is fraud involved here, but this creates a bit of uneasiness.  While this current action appears focused on nonprofits, it wouldn’t be a total shock to see companies get caught in the net. Federal policy criminalizing climate work was not a business risk I had ever thought about – and I bet I’m not alone.

Members can learn more about enforcement matters here.

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The Editor

Lawrence Heim has been practicing in the field of ESG management for almost 40 years. He began his career as a legal assistant in the Environmental Practice of Vinson & Elkins working for a partner who is nationally recognized and an adjunct professor of environmental law at the University of Texas Law School. He moved into technical environmental consulting with ENSR Consulting & Engineering at the height of environmental regulatory development, working across a range of disciplines. He was one… View Profile