In this session, Kharon, Arent Fox, and Aon are joined by Andrew Pahutski, Director of the U.S. Department of Defense's (DoD) Office of Foreign Investment Review and the DoD’s representative to CFIUS. The speakers will provide an overview of the U.S. Innovation and Competition Act and the proposed EAGLE Act, addressing how these authorities create new requirements and regulatory expectations for covered activities. 

In line with an increasing focus on securing supply chains across critical industries, the U.S. government is working to curb foreign influence on America’s supply chains by revising regulations on direct foreign investment. The U.S. government is increasingly using the Foreign Investment Risk Review Modernization Act  (FIRRMA) and the Committee on Foreign Investment in the United States (CFIUS) to review foreign direct investments that pose national security risks. 

The CFIUS review process was significantly expanded in 2018 to monitor foreign investments involving critical technologies, infrastructure, personal data, and real estate. More recently in June 2021, the Senate passed the U.S. Innovation and Competition Act that expands CFIUS authorities and the scope of covered transactions. This expanded scope raises due diligence requirements for a variety of new industry verticals.



pahutski-officialAndrew Pahutski, Director of Global Markets + Investments, U.S. Department of Defense

Mr. Andrew J. Pahutski entered the DoD’s Executive Service in 2017 and currently serves as Highly Qualified Expert (HQE) to the Under Secretary of Acquisition and Sustainment. In this capacity, Pahutski is the Director of Global Markets and Investments, where among other duties he serves as the DoD’s representative to the Committee on Foreign Investment in the United States (CFIUS). CFIUS an Executive Branch inter-agency responsible for reviewing the national security implications of foreign investments in U.S. companies or operations on behalf of the President

mendelsohn_headshot_SM_squareHoward Mendelsohn, Chief Client Officer, Kharon

Howard works closely with business, compliance, and legal professionals to strengthen programs and controls for managing financial crime risk. Howard has over two decades of experience in combatting illicit financial activity in both the government and the private sector. Howard served at the U.S. Treasury Department from 2001 to 2011, including as Deputy Assistant Secretary and Assistant Secretary (Acting) for Treasury’s Office of Intelligence and Analysis. Howard led Treasury’s intelligence functions, including oversight of analytical production, risk assessment, security, and strategic planning. Following his service at Treasury, Howard held leadership positions in Enterprise Compliance at PNC Financial Services Group. He is a recognized thought leader on Financial Crime matters and speaks regularly at conferences.

kitheadshot_2Kit Conklin, Director of Global Client Engagement, Kharon

Kit leads Kharon’s engagement with government clients and advises U.S. and international clients on Military End User and export control risks. Prior to Kharon, Kit served in national security positions with the U.S. government where he specialized in non-proliferation and East Asia security issues. Kit also established nuclear cybersecurity and technology defense programs at Lawrence Livermore and Pacific Northwest National Laboratories. Kit has held multiple think tank fellowships, and his work has been published by the Center for Strategic and International Studies and the Center for Nonproliferation Studies. He speaks Mandarin Chinese and Spanish, and holds an MS from the National Intelligence University and an MA from the Middlebury Institute of International Studies. 

hankeDavid Hanke, Partner, Arent Fox

Dave is a leading national security and public policy lawyer for domestic and foreign companies, especially those navigating the Committee on Foreign Investment in the United States (CFIUS) and its expanded authority under the Foreign Investment Risk Review Modernization Act (FIRRMA). While working on Capitol Hill, he was the primary staff architect of FIRRMA and the chief strategist behind its 2018 enactment. Beyond CFIUS, he also advises companies on U.S. government policy regarding supply chain and strategic technology issues, such as 5G telecommunications infrastructure and domestic semiconductor manufacturing, and helps clients interface effectively with federal agencies and Congress. Companies that end up tangled in the growing strategic competition between the U.S. and China regularly seek his advice, and he is frequently invited to speak at industry, think tank, and academic conferences and quoted in major national news stories.

laroccaJoshua Larocca, Senior Managing Director, Stroz Friedberg, an Aon Company

Joshua J. Larocca leads teams of digital forensic examiners, data scientists, forensic accountants, and analysts in conducting a wide variety of complex financial crime, incident response, and corporate misconduct investigations on behalf of corporations, law firms, and financial institutions. Mr. Larocca’s diverse practice includes advisory work on various stages of the CFIUS process, including serving as a Third Party Monitor; consulting on money laundering and sanctions matters pursuant to compliance monitorships; and leading incident response teams investigating ransomware and other data breach matters.

Prior to joining Stroz Friedberg, Mr. Larocca served as a Trial Attorney in the Counterterrorism Section at the Department of Justice, responsible for investigating and prosecuting international and domestic terrorism cases, including terrorist financing, material support, money laundering, and economic sanctions matters.

From 2002 to 2006, Mr. Larocca served as an Assistant District Attorney in New York County. In addition to his government experience, Mr. Larocca practiced at Nixon Peabody LLP, where his practice centered on securities litigation, government investigations, and international corporate investigations. Earlier in his career, Mr. Larocca worked at Citibank Russia, first as Chief of Staff to the CEO of the bank and later as a Relationship Manager.