“The truest measure of an effective compliance program is how it responds to misconduct.”— FCPA Guidance (2d. ed 2020) -
This straight-forward statement (above) of a company’s commitment to its “effective” compliance...more
While the value of a positive corporate culture is clear, a strong culture does not always develop organically. Companies must devote attention to measuring, managing, and promoting ethical cultures....more
An organization’s culture does not exist in a vacuum. It is communicated and executed every day. It is the guidepost by which internal and external interactions occur and is carried out by individuals in a multitude of...more
We often discuss the importance of a “Speak Up” culture. We encourage employees to report their concerns, we emphasize the important of such reporting to the life of an organization....more
We all know (and repeat every day) that corporate cultures reflect social trends and pressures. Companies face extraordinary political and social pressures, and this translates into its corporate workforce....more
Organizations are comprised of human actors and in the end are defined by human values. In other words, human make mistakes and so do companies. Where things get sticky is when we face challenges and companies, like human,...more
Everyone is now on the culture bandwagon. For those of us pushing the issue over the last decade, welcome aboard to everyone. But once you join, the work is only beginning. ...more
A corporate scandal does not occur overnight. (Thank you Bob Dylan). A CEO does not begin the day telling him or herself that today is the day to begin the Ponzi scheme or complex fraud. It is hard to imagine but corporate...more
The Directive’s robust prohibitions against retaliation for covered persons—including both attempts and threats— is meticulously outlined in Article 19....more
Article 17 of the Directive explicitly incorporates the provisions of Regulation 2016/679 on the protection of natural persons with regard to the processing of personal data (“GDPR”) to the handling of such data in relation...more
Article 7 of the Directive instructs member states to encourage reporting through internal organizational channels first, where the risk of retaliation is remote, and the reported breach can be effectively addressed on an…...more
Directive 2019/1937 of the European Parliament and Council dated 23 October 2019 on the “protection of persons who report breaches of Union law” (the “Directive”)[1] is set to enter into legal force on 17 December 2021—the...more
The FCPA Guidance issued by the Justice Department and the SEC says it best – “The truest measure of an effective compliance program is how it responds to misconduct.” ...more
Banking regulators have been flexing their muscles. With the coming Biden Administration, this may portend the beginning of a new, enforcement wave. Some have suggested that banks are resolving these cases before a more...more
12/4/2020
/ Biden Administration ,
CFTC ,
Corporate Misconduct ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Internal Controls ,
JPMorgan Chase ,
OCC ,
Regulatory Violations ,
Securities and Exchange Commission (SEC) ,
White Collar Crimes
In the enforcement and compliance arena, there are instances of misconduct that underscore important governance principles. But this just sounds like a bunch of mumbo jumbo (the technical term, I know)....more
11/12/2020
/ Bribery ,
Compliance ,
Corporate Misconduct ,
Corruption ,
Deferred Prosecution Agreements ,
Department of Justice (DOJ) ,
Foreign Corrupt Practices Act (FCPA) ,
Herbalife ,
Internal Audit Functions ,
Securities and Exchange Commission (SEC) ,
Settlement ,
White Collar Crimes
J&F Investmentos (“J&F”) FCPA settlement presents a number of important lessons learned. While the bribery scheme was brazen and involved a large amount of money, the techniques and warning signs must have been fairly...more
10/23/2020
/ Bribery ,
C-Suite Executives ,
Compliance ,
Corporate Counsel ,
Corporate Misconduct ,
Corruption ,
Department of Justice (DOJ) ,
Foreign Corrupt Practices Act (FCPA) ,
Securities and Exchange Commission (SEC) ,
Shell Corporations ,
White Collar Crimes
The Justice Department’s Antitrust Division’s criminal enforcement program is having a strong year. Since completing its long-term and record-setting prosecution of Japanese auto parts suppliers, the Antitrust Division...more
10/16/2020
/ Anti-Competitive ,
Antitrust Division ,
Antitrust Provisions ,
Antitrust Violations ,
Compliance ,
Corporate Misconduct ,
Corruption ,
Criminal Conspiracy ,
Department of Justice (DOJ) ,
Health Care Providers ,
Market Allocation Scheme ,
White Collar Crimes
Boeing’s culture and safety performance continues to undermine its ability to move forward and regain trust from regulators, the aviation industry and the flying public....more
10/2/2020
/ Airplane Accidents ,
Aviation Industry ,
Boeing ,
Compliance ,
Congressional Committees ,
Corporate Culture ,
Corporate Misconduct ,
Corruption ,
Equipment Failure ,
Federal Aviation Administration (FAA) ,
White Collar Crimes
Boeing is the new poster child for corporate governance failures and misconduct. Move over Wells Fargo, General Motors, Volkswagen, Novartis, Siemens and Wal-Mart, and make room for Boeing. Like General Motors and its...more
10/2/2020
/ Airplane Accidents ,
Aviation Industry ,
Boeing ,
Compliance ,
Congressional Committees ,
Corporate Governance ,
Corporate Misconduct ,
Corruption ,
Critical Infrastructure Sectors ,
Equipment Failure ,
Federal Aviation Administration (FAA) ,
Regulatory Violations ,
Shareholder Litigation ,
Transparency
The European Union Whistleblower Protection Directive imposes a broad set of requirements – to Member States and EU companies. At the heart of the EU’s concern is to ensure that no employee (or business partner) should risk...more
Global companies face a number of challenges and a myriad of regulatory obligations. In December 2019, the EU adopted a directive to promote and protect persons who report violations of law....more
8/12/2020
/ Anti-Retaliation Provisions ,
Corporate Misconduct ,
Employer Liability Issues ,
EU ,
EU Directive ,
Internal Reporting ,
International Labor Laws ,
Labor Regulations ,
Regulatory Standards ,
Whistleblower Protection Policies ,
Whistleblowers
Last week, Steele Compliance Solutions announced the global rollout of its new “Risk Intelligence Data” platform. As a global leader in ethics and compliance data management technologies, Steele makes a patented addition to...more
In an important case decided in June 2020, the Supreme Court, in Liu et al v. SEC, addressed the SEC’s ability to seek “equitable relief” in civil proceedings.
In 2017, the Supreme Court, in Kokesh v. SEC, ruled that a...more
7/8/2020
/ 15 U.S.C. § 78u(d)(5) ,
Administrative Authority ,
Business Expenses ,
Calculation of Damages ,
Corporate Misconduct ,
Disgorgement ,
Enforcement Actions ,
Equitable Relief ,
Kokesh v SEC ,
Lack of Authority ,
Liu v Securities and Exchange Commission ,
Net Profits ,
Remedies ,
SCOTUS ,
Securities and Exchange Commission (SEC)
Even during this difficult time of the pandemic, economic uncertainty and social unrest, the Justice Department and the SEC have concluded a major FCPA enforcement action....more
Companies that rely on mergers and acquisition for growth have to build robust post-acquisition integration policies and controls. Such a requirement applies not only to ethics and compliance program integration but to...more