Arthur D. Middlemiss

New York Limited Liability Companies will be subject to beneficial ownership reporting obligations pursuant to the New York LLC Transparency Act (NYLLCTA) beginning in 2026. This article discusses the requirements and potential penalties for failure to comply.

On November 24, 2025, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) imposed a penalty of $4,677,552 on an individual in the real estate sector for knowingly renovating and selling property in Atlanta owned by a blocked individual. The investor, “U.S. Person-1,” not only violated OFAC’s Russia sanctions program, but failed to comply with an OFAC subpoena and violated the terms of an OFAC cease-and-desist letter.

On November 20, 2025, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) announced sanctions on a global network of individuals, entities, ships, and aircraft for their involvement with the Iranian regime.  The alleged network was sanctioned pursuant to OFAC’s counterterrorism authority, as set forth in Executive Order (E.O.) 13224, as amended and pursuant to the Iranian Sanctions regime, E.O. 13846 and 13902.

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) removed former Paraguayan President Horacio Manuel Cartes Jara and several affiliated companies from its Specially Designated Nationals (SDN) list, reversing measures that had been in place for nearly three years under the Global Magnitsky Human Rights Accountability Act.

Cryptocurrency exchange ShapeShift AG agreed to a settlement of $750,000 with the U.S. Office of Foreign Assets Control for apparent violations of US sanctions regulations relating to Cuba, Sudan, Iran and Syria.

On October 9, 2025, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) announced sweeping designations of almost 100 vessels, a refinery, an oil terminal and shell companies all alleged to support Iran’s illicit oil trade.  Acting pursuant to Executive Orders 13902 (targeting Iran’s petrochemical sector) and 13846 (reimposing Iranian sanctions by President Trump in his first term) this action reflects the United States’ ongoing and broad efforts to target Iran’s oil exports and choke off the revenues they bring to the regime. 

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned two Iranian nationals and more than a dozen UAE and Hong Kong-based individuals and entities for coordinating transfers of funds to already-designated Iranian entities.

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) re-designated the cryptocurrency exchange Garantex Europe OU. OFAC alleged that Garantex directly facilitated cybercriminals by processing over $100 million in transactions linked to illicit activities since 2019.

The Office of Foreign Assets Control of the U.S. Treasury Department announced a settlement and civil monetary penalty of USD 1,454,145 with Harman International Industries, Inc. arising from violations of OFAC sanctions on Iran.

The United States has intensified its efforts to crack down on sanctions evasion, placing particular scrutiny on the financial and commercial activities flowing through the Gulf region—especially the United Arab Emirates. Whether the focus of US foreign policy is on disrupting Russia’s war financing efforts or confronting Iran’s shadow banking network, the UAE remains a consistent “country of focus” for the US Treasury Department.

The U.S. government is laser-focused on illicit fentanyl and synthetic opioid trafficking and has shifted its approach from targeting narcotics operators themselves to focusing on their financial and commercial infrastructure: banks, brokerage houses, trade intermediaries, corporations and logistics firms. There is a clear political and enforcement intent to “make examples” of institutions—regardless of size or degree of complicity—to establish deterrence, show resolve, and build domestic political capital.

President Trump has cracked down on terror support networks in Yemen and Iran, but he has also extended hope for development in war-torn Syria.

In a recent enforcement action, FinCEN used Section 311 of the USA PATRIOT Act’s “special measures” to exile a “network” of Cambodia-based businesses, including a crypto brokerage, from the U.S. financial system.

The U.S. Senate joined the House of Representatives and passed the 2021 National Defense Authorization Act, a defense spending bill, which included the Corporate Transparency Act (the “Act”).  That Act sets forth an expansion for the disclosure requirements for certain US and non-US companies doing business in the United States. 

There is a popular misconception that asset forfeiture is limited to the luxury cars, private jets and speedboats of drug dealers, but many well-meaning businesses and individuals are finding themselves with their assets seized under statutes that provide U.S. authorities extremely broad powers. And these seizures often occur without any warning to, or even accusation against, the owner of the assets. Once seized it can take years to obtain recovery of perfectly legal assets. In these uncertain times, as many well-meaning people seek the relative safety of the U.S. banking system, individuals and companies in many countries may innocently use money-transfer systems that exponentially increase the risk of having their assets seized. Why does this happen and how can it be avoided?

Banks serving clients in the many countries the U.S. views as high risk for money laundering should be aware that the U.S. Financial Crimes Enforcement Network (“FinCEN”), a bureau of the U.S. Department of the Treasury, plans to expand its use of “special measures” to fight money laundering and terrorist financing. 

Banks serving clients in the many countries the U.S. views as high risk for money laundering should be aware that the U.S. Financial Crimes Enforcement Network (“FinCEN”), a bureau of the U.S. Department of the Treasury, plans to expand its use of “special measures” to fight money laundering and terrorist financing. Per its 2020 budget and performance report, FinCEN expects by 2022 an increase of 30% in its use of “special measures,” including those authorized by § 311 of the USA PATRIOT Act (“§ 311”).

Arthur Middlemiss was a panelist at a CLE event titled "Doing Business in Mexico: Legal Developments in Arbitration and Financial Crime (Anti-Money Laundering and Anti-Corruption)," jointly presented by Lewis Baach Kaufmann Middlemiss PLLC and Von Wobeser y Sierra, S.C.

Global Investigations Review has named Lewis Baach Kaufmann Middlemiss PLLC to its 2025 "GIR 100" list, which ranks the top law firms handling complex, cross-border investigations globally. This is the second year in a row that LBKM has made the list.

In an article for ACAMS Today, LBKM partner Art Middlemiss discusses "spot-fixing" and how an automated transaction-monitoring system likely flagged an unusual amount of money bet on a July 6, 2025 pitch by Cleveland Guardians pitcher Luis Ortiz, who was indicted in federal court last week as part of a sports betting and money laundering conspiracy.

Much has been written about sweeping changes in Foreign Corrupt Practices Act (FCPA) enforcement under the Trump Department of Justice (DOJ).  An executive order signed by Mr. Trump when he took office commanded a pause in all FCPA cases, and subsequent policy memoranda and statements by DOJ officials signaled substantial changes in enforcement standards and prosecutorial focus.  A recent case filed by DOJ shows that FCPA indictments are still on the table, at least in some cases.

Lewis Baach Kaufmann Middlemiss has been recognized for the second year in Chambers annual Latin America Guide for its Corporate Crime and Investigations practice area. Firm partners Adam Kaufmann and Cristián Francos also ranked for the first time as practitioners for the sector, demonstrating LBKM’s deepening strength and expertise in handling key issues impacting clients from the region.

An F.B.I. investigation homed in on two powerful men in suburban New York. Behind it were allegations by a woman who said her brother had abused and controlled her for 45 years.

Chambers has again noted Lewis Baach Kaufmann Middlemiss PLLC (LBKM) for its expertise in Latin America.

The 2025 Chambers Global guide ranks the firm among the top international counsel for corporate crime and investigation matters arising out of Latin America. LBKM is the only boutique firm to be included in this elite list.

Leaders in a small New York town thought they were untouchable, until one woman’s quest for freedom took them down.

Global Investigations Review has ranked LBKM as one of the world’s leading firms for cross-border investigations.

An Orange County judge vacated the grand larceny conviction of Martin Soudani and voided the order for him to pay restitution to his uncle, Mout'z Soudani. She said the case was tainted by payments of up to $63,000 Mout’z Soudani allegedly made to Assistant District Attorney Stewart Rosenwasser during the investigation and prosecution.

Lewis Baach Kaufmann Middlemiss made its debut this year in Chambers’ annual Latin America Guide, ranking as a leading international firm in the Corporate Crime & Investigations practice area.

LBKM is the only boutique firm to be so ranked.

LBKM partner Art Middlemiss was quoted extensively in a Salon.com article on the factors that will affect the former president's criminal sentencing.

New York federal prosecutors have asked a judge to sentence the minority owner of a financial institution to two years of probation for his failure to make sure the institution was following anti-money laundering regulations, saying he was less culpable than the company's compliance officer.

On March 2, 2023, the US government published a multi-agency notice setting forth red flags and warning of enhanced enforcement efforts related to third-party intermediary evasion of US Russia-related sanctions and export controls.  The Financial Times subsequently reported that a senior Treasury official stated that the UAE was a “country of focus” for US investigators.

Art Middlemiss appeared on the Gatenox series "Crypto Compliance" to discuss the FTX scandal from a compliance perspective. 

The Lafarge case illustrates the extent companies with operations in high-risk jurisdictions must be aware of increasing ATA-related risk, including the risk of civil litigation.

En una demanda por confiscación de fondos presentada ante una corte del Distrito Sur de Nueva York, los fiscales estadounidenses explicaron porqué el movimiento de esos dólares en su entrada y paso por el país norteamericano sería ilegal.

According to U.S. authorities, the U.S.-based activities of “blue dollar peso exchangers” are illegal, and those exchangers that maintain U.S. bank accounts are subject to asset forfeiture and criminal prosecution. The recent U.S. forfeiture case brought by U.S. authorities in the U.S. District Court for the Southern District of New York against Partners Capital Investment (“PCI”) illustrates intense interest by U.S. authorities in the “blue dollar peso exchange,” and additional U.S. actions should be expected. 

OFAC, banking regulators and criminal enforcement authorities agree: there are big cases to be made in the crypto space. The latest example is OFAC’s October 2022 sanctions enforcement action against crypto-trading platform Bittrex, Inc.

Arthur Middlemiss and Cristián Francos secured the return of all funds seized by the U.S. Department of Justice from U.S. accounts maintained by two broker-dealers based in Uruguay and New Zealand, respectively, both of which operated in Argentina. 

On December 9, 2021, the Biden administration published the first-ever United States Strategy on Countering Corruption. This Strategy sets forth a “whole-of-government” approach to combating corruption in the United States and around the world. Individuals and entities should expect an increase in sanctions and scrutiny of activities that present high corruption-related risk. As such, companies and individuals should immediately review current business activities to ensure that they understand their exposure to corruption-related risk and have in place commensurate controls to deter and detect potential problems. A proactive approach to corruption risk now will provide material future benefits if the expected increase in regulatory and law enforcement scrutiny results in a corruption-related inquiry.

Mr. Truppel was sentenced in the U.S. District Court for the Southern District of New York to time served, with no supervisory probation or fine imposed, and was allowed to return to Argentina.

In 2020 and beyond, foreign banks should expect the U.S. Department of the Treasury's Financial Crimes Enforcement Network, or FinCEN, to expand its use of so-called special measures.

Arthur Middlemiss spoke to Corporate Counsel regarding the September 27, 2019 consent order entered by the U.S. Securities and Exchange Commission detailing corruption offenses by Barclays PLC. 

Adam Kaufmann, Art Middlemiss and John Moscow remember "The Boss," longtime Manhattan District Attorney Robert Morgenthau.

Colleges and universities must recognize the risk of potential corruption in their admissions process, and build intelligent controls to guard against fraud. Lewis Baach’s Arthur D. Middlemiss explains that schools should employ cost-efficient compliance measures and warns of the dangers in failing to do so.

Art Middlemiss heads a team of attorneys representing Good Morning America Co-Anchor, Lara Spencer against the fraudulent use of her name and likeness in skincare ads. “If I tell you that I'm selling you one thing, but I really sell you another thing, that's fraud,” Middlemiss told GMA. “I'm telling you that I'm selling you a product that's endorsed by a celebrity, when it hasn't been endorsed by a celebrity. That's a fraud.”

"Puerto Rico es un centro financiero sofisticado que forma un centro natural entre América Latina y los Estados Unidos", dijo Art Middlemiss, un profesional de cumplimiento y socio de Lewis Baach Kaufmann Middlemiss. "La conferencia mostró el compromiso de la comunidad bancaria internacional de Puerto Rico con las mejores prácticas internacionales de cumplimiento y su reconocimiento de sus responsabilidades como miembros del sistema financiero global".

Criminals are opportunists. They like money. There’s a ton of money in college basketball. And, as evidenced by the federal criminal charges against 10 people, including four Division I NCAA men’s basketball assistant coaches and a senior executive at a major athletic apparel company, no one seems to keep a particularly close eye on that money — and pots of unsupervised money create attractive opportunities.

Woodsford Litigation Funding, one of the leading global third party funders, has announced a funding facility agreement with Lewis Baach which ensures the firm can offer clients an expedited, one-stop arrangement for the financing of high value litigation and arbitration.

Mr. Francos is mentioned in the article.

Learning the tell-tale signs of human trafficking transactions empowers AML investigators both to protect their institutions and to provide law enforcement real, actionable intelligence.