The SEC finished with the last nail in GSK China’s coffin by announcing a $20 FCPA million settlement for GSK’s violations in China.
The Justice Department declined to prosecute this case. In 2014, a Chinese court...more
10/5/2016
/ Bribery ,
China ,
Compliance ,
Corruption ,
Department of Justice (DOJ) ,
Foreign Corrupt Practices Act (FCPA) ,
GlaxoSmithKline ,
Medical Devices ,
Pharmaceutical Industry ,
Popular ,
Securities and Exchange Commission (SEC) ,
White Collar Crimes
The Justice Department and the SEC have been busy over the last 2 weeks in the FCPA arena. For those who have raised doubts about DOJ and the SEC’s continuing commitment to FCPA enforcement, you should forever hold your...more
10/3/2016
/ Anheuser-Busch ,
Beer ,
Bribery ,
Corporate Counsel ,
Department of Justice (DOJ) ,
Due Diligence ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
India ,
Internal Audit Functions ,
Popular ,
Securities and Exchange Commission (SEC) ,
Settlement ,
Whistleblower Protection Policies ,
Whistleblowers
The corporate compliance function is only as successful as its partnerships with key internal constituencies. Depending on the company and the personnel involved, compliance has to establish and maintain effective working...more
9/29/2016
/ Anti-Corruption ,
Anti-Money Laundering ,
Antitrust Provisions ,
Code of Conduct ,
Compliance ,
Corporate Culture ,
Corporate Governance ,
Corporate Misconduct ,
Cybersecurity ,
Economic Sanctions ,
Ethics ,
Export Controls ,
Hiring & Firing ,
Human Resources Professionals ,
Internal Investigations ,
Policies and Procedures ,
Popular ,
Regulatory Standards ,
Risk Management
In a rare enforcement action, the SEC settled an FCPA enforcement action for $766,000 for a charitable donation of $154,000 to improperly influence a high-ranking Chiese Communist party official to prevent a provincial agency...more
9/23/2016
/ Bribery ,
Charitable Donations ,
Charitable Organizations ,
China ,
Corruption ,
Due Diligence ,
Enforcement Actions ,
Fines ,
Foreign Corrupt Practices Act (FCPA) ,
Investigations ,
Nu Skin ,
Personal Care Products ,
Popular ,
Securities and Exchange Commission (SEC) ,
White Collar Crimes
Last week, the SEC added another pharmaceutical company to its list of FCPA violators when AstraZeneca agreed to a $5.5 million settlement with the SEC. AZ is now the 25th drug or medical device company to pay an FCPA penalty...more
9/6/2016
/ Anti-Kickback Statute ,
AstraZeneca ,
Bribery ,
China ,
Corporate Counsel ,
Corporate Crimes ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Health Care Providers ,
Kickbacks ,
Pharmaceutical Industry ,
Physicians ,
Popular ,
Russia ,
Securities and Exchange Commission (SEC) ,
Settlement ,
White Collar Crimes
The SEC, last week, announced its $5 million settlement with Key Energy. As always, FCPA settlements contain important examples of enforcement priorities and policies. Key Energy’s recent settlement is an example of the...more
8/25/2016
/ Books & Records ,
Bribery ,
Compliance ,
Corruption ,
Disgorgement ,
Due Diligence ,
Energy Sector ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Internal Controls ,
Mexico ,
Oil & Gas ,
PEMEX ,
Popular ,
Securities and Exchange Commission (SEC) ,
Settlement Agreements ,
White Collar Crimes
Building on early successes, the Financial Crimes Enforcement Network (“FinCEN”) announced new rules targeting buyers of high-end real estate properties.
Earlier this year, FinCEN adopted rules focusing on high-end...more
8/24/2016
/ Anti-Corruption ,
Anti-Money Laundering ,
Banking Sector ,
Beneficial Owner ,
Cash Transactions ,
Customer Due Diligence (CDD) ,
Financial Institutions ,
FinCEN ,
Geographic Targeting Order ,
Limited Liability Company (LLC) ,
Popular ,
Real Estate Investments ,
Reporting Requirements ,
Shell Corporations
Last week, the Justice Department and the SEC announced parallel FCPA settlements totaling $22 million in fines, penalties and disgorgement against LAN Airlines, a Chile-based airline, for conduct in resolving a labor dispute...more
8/1/2016
/ Accounting Fraud ,
Airlines ,
Argentina ,
Books & Records ,
Bribery ,
Compliance ,
Corporate Counsel ,
Corruption ,
Deferred Prosecution Agreements ,
Department of Justice (DOJ) ,
Disgorgement ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Internal Controls ,
Labor Disputes ,
Money Laundering ,
Popular ,
Securities and Exchange Commission (SEC) ,
Transportation Industry
At first glance, the SEC’s recent enforcement action against Johnson Controls for $14 million for FCPA violations in China, along with a Justice Department declination under its new Pilot Program, appears to be a “routine”...more
7/19/2016
/ Bribery ,
Cease and Desist ,
China ,
Civil Monetary Penalty ,
Compliance ,
Corporate Counsel ,
Department of Justice (DOJ) ,
Disgorgement ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Internal Controls ,
Popular ,
Sarbanes-Oxley ,
Securities and Exchange Commission (SEC) ,
Shipping ,
Vendors ,
White Collar Crimes
With the rise of OFAC Sanctions enforcement and compliance issues, companies have to devote significant resources to following changes in OFAC Sanctions. Over the last few years, the US government has significantly altered...more
7/8/2016
/ Bureau of Industry and Security (BIS) ,
Burma ,
Compliance ,
Cuba ,
Cuban Assets Control Regulations (CACR) ,
Economic Sanctions ,
Financial Institutions ,
Foreign Subsidiaries ,
General Licenses ,
Iran Sanctions ,
ITSR ,
Myanmar ,
Office of Foreign Assets Control (OFAC) ,
Parent Corporation ,
Physical Presence Test ,
Popular ,
SDN List
Compliance is a profession that requires multi-tasking – another profound grasp of the obvious. But in the multi-tasking world, some principles and strategies are more important than others.
My colleague and...more
6/28/2016
/ Bribery ,
Compliance ,
Corruption ,
Documentation ,
Due Diligence ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Government Investigations ,
Hitachi ,
Popular ,
Securities and Exchange Commission (SEC) ,
South Africa ,
White Collar Crimes
DOJ’s FCPA Unit knows what they are doing. In the immediate weeks after the release of the FCPA Pilot Program, DOJ publicly released two declination letters for Akamai Technologies and Nortek, Inc. and the SEC announced...more
6/14/2016
/ Akamai Technologies ,
Bribery ,
China ,
Cloud Computing ,
Construction Industry ,
Department of Justice (DOJ) ,
Federal Pilot Programs ,
Foreign Corrupt Practices Act (FCPA) ,
Non-Prosecution Agreements ,
Nortek ,
Popular ,
Securities and Exchange Commission (SEC) ,
Technology Sector ,
Voluntary Disclosure ,
White Collar Crimes
Just like the ups and downs of the business cycle, SEC enforcement of accounting fraud cases follow an up and down trend as well. For example, during the financial crisis, SEC enforcement of accounting fraud cases took a back...more
When a scandal hits the media like the Panama Papers leak of 11.5 million confidential legal records, we all know what to expect. Criminal investigations, regulatory responses, and of course, congressional hearings of some...more
5/9/2016
/ Banking Sector ,
Beneficial Owner ,
Corruption ,
Criminal Investigations ,
Financial Institutions ,
Money Laundering ,
Mossack Fonseca ,
NYDFS ,
Offshore Funds ,
Panama Papers ,
Popular ,
Shell Corporations ,
Tax Fraud ,
Tax Haven
Since 2010, the Justice Department and the SEC have been “investigating” a number of private equity and hedge funds for FCPA violations. The launch of the inquiries was a big deal with lots of fanfare and focus on private...more
5/5/2016
/ Bribery ,
Compliance ,
Criminal Investigations ,
Department of Justice (DOJ) ,
Government Entities ,
Hedge Funds ,
Libya ,
Och-Ziff ,
Political Corruption ,
Popular ,
Private Equity Firms ,
Securities and Exchange Commission (SEC) ,
Settlement Agreements ,
Sovereign Wealth Funds ,
Wells Notice ,
Zimbabwe
Showing my age again, Woody Allen’s Take the Money and Run included a hilarious scene when Woody’s parents wearing Groucho Marx glasses talk about their criminal son (Woody/Virgil Starkwell), his dad exclaimed “He’s rotten,...more
Last week, the SEC announced another FCPA settlement involving the pharmaceutical industry for bribery in China. The SEC’s settlement filing represents yet another example of the pharmaceutical industry run amok in China,...more
3/29/2016
/ Bribery ,
China ,
Compliance ,
Corporate Counsel ,
Foreign Corrupt Practices Act (FCPA) ,
Health Care Providers ,
Kickbacks ,
Novartis ,
Pharmaceutical Industry ,
Policies and Procedures ,
Popular ,
Securities and Exchange Commission (SEC)
Over the last ten to twenty years, we have witnessed the expansion of federal criminal prosecution of health and safety matters. Environmental and food and drug regulatory enforcement has been supplemented by aggressive...more
3/7/2016
/ Compliance ,
ConAgra ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Federal Food Drug and Cosmetic Act (FFDCA) ,
Food Contamination ,
Food Manufacturers ,
Food Recalls ,
Food Safety ,
Popular ,
Salmonella ,
Supply Chain
PTC, a Massachusetts software company, reached settlements with the SEC and DOJ last week for FCPA violations for a total of $28 million. Interestingly, the SEC announced a DPA with a PTC official who assisted in the...more
The Vimpelcom FCPA enforcement action is stunning in its breadth and the brazen nature of the bribery scheme. It is hard to accept that such conduct stretched into 2011 to 2013, given the significant emphasis placed on...more
For years, cyber security has been the province of IT specialist and technicians. Those days are long gone. If you ask a Board of Directors to identify a company’s most significant risk – cyber security is tops....more
In all honesty, if I were betting on my predictions, I would be broke. If I were setting the line on the Super Bowl, I am sure I would go bankrupt in paying off bets. With such confidence, you may want to just click to the...more
Most discussions of why third party due diligence is so important begin with an explanation of indirect liability and the “deliberate ignorance” standard of knowledge the FCPA imposes. With so much focus on anti-bribery it is...more
In the public relations battle following the issuance of the Yates Memo, the Justice Department can now cite one example for the new policy – the recent arrest and charging of Carl Reichel, former President of Warner...more
11/4/2015
/ Anti-Kickback Statute ,
Corporate Counsel ,
Criminal Investigations ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Federal Contractors ,
Government Investigations ,
Health Insurance ,
Healthcare ,
Healthcare Fraud ,
Insurance Industry ,
Kickbacks ,
Pharmaceutical Industry ,
Physicians ,
Popular ,
Qui Tam ,
Relators ,
Warner Chilcott ,
White Collar Crimes ,
Yates Memorandum
Ethical companies, by definition, have a robust system for internal organizational justice.
A company that suffers from unequal treatment of similarly situated executives, managers, and employees cannot maintain an...more