Former Prosecutor to Monitor GM’s Recalls
The U.S. Attorney’s Office has appointed a former New York City prosecutor to serve as federal monitor for General Motors – a role that will include reviewing company policies and practices for safety recalls.
Bart M. Schwartz, former chief of the criminal division in the U.S. Attorney’s Office for the Southern District of New York, is the appointee. His monitoring role is part of GM’s $900 million settlement with the Justice Department over the automaker’s handling of defective ignition switches. The settlement agreement specifies that the monitor will oversee GM’s recall processes for three years.
Schwartz is currently chairman of Guidepost Solutions, a firm specializing in monitoring, compliance, international investigations and risk management. His time with the U.S. Attorney’s Office was in the 1980s, serving under Rudy Giuliani.
“We welcome Bart Schwartz and his insights, and we pledge our full cooperation and the same transparency and candor that has guided our response to the ignition switch recall,” said Craig B. Glidden, executive vice president and general counsel for General Motors.
GM expects Schwartz to maintain an office at the company and work closely with Jeffrey A. Taylor, who just joined GM as deputy general counsel for federal oversight.
In recent years, Schwartz has provided compliance-related consulting services to a number of companies involved in high-profile cases and investigations. Last year, for example, the U.S. Attorney’s Office approved Schwartz as a consultant to evaluate and report on the insider-trading compliance procedures of SAC Capital Advisors and its entity, Point 72 Asset Management.
Another noteworthy assignment for Schwartz was serving as receiver of the Madoff-related Merkin hedge funds. Duties included making investment decisions, managing litigation and investor relations.