Corporate governance and compliance is not as hard as everyone tries to make it. Much of management theory, risk management, and theories surrounding corporate operations is intuitive.
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World Acceptance Corporation (“WAC”), a US-based consumer loan company, agreed to pay the SEC $21.7 million for FCPA violations in Mexico. WAC’s cited violations covered the full gamut of FCPA violations, including bribery...more
Corporate board members face increasing risks. Federal prosecutors are watching their behavior when corporate malfeasance occurs. Regulators focus on the important issue of board governance. Shareholders are ready to file...more
Corporate boards face serious challenges – business disruption from the pandemic and a slowing global economy. Directors have to focus on these two issues for at least the next 12 months....more
Corporate board diversity continues to increase slowly – and I mean slowly. For United States companies, corporate boards are far behind their foreign counterparts. California has imposed a minimal requirement that every...more
It is perhaps fitting that we are coming up on the one-year anniversary of the Business Roundtable’s Restatement of Corporate Purposes, which was signed by 181 corporate leaders and widely-praised for its expansion of...more
Corporations are slow to change. Unless forced by government prosecutors or regulators, companies inherently resist change, even when such changes can make a business more profitable. ...more
World Acceptance Corporation (“WAC”), a US-based consumer loan company, agreed to pay the SEC $21.7 million for FCPA violations in Mexico. WAC’s cited violations covered the full gamut of FCPA violations, including bribery...more
8/11/2020
/ Anti-Corruption ,
Books & Records ,
Bribery ,
Compliance ,
Corporate Counsel ,
Corruption ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Internal Controls ,
Mexico ,
Popular ,
Regulatory Violations ,
Securities and Exchange Commission (SEC) ,
Settlement Agreements ,
White Collar Crimes
Companies do not operate in a vacuum. Political and social forces have a dramatic impact on individuals who in turn constitute a company’s workforce. ...more
On May 1, 2020, Blue Bell pleaded guilty to shipping contaminated ice cream linked to a 2015 listeria outbreak and agreed to pay a fine of $19.5 million ($17.4 million criminal fine and $2.1 million to settle civil false...more
It is hard to argue that Apple and Amazon do not have the resources to implement state-of-the-art OFAC compliance programs. After all, the two largest companies in the world should stand as beacons of compliance with the full...more
Here is another profound grasp of the obvious (for which I have a knack for delivering) – compliance and legal professionals can learn a number of lessons from individual enforcement actions. In many cases, however, there is...more
When you are hot, you are hot. (And when you are not, you are not; Thank you Jerry Reed, Country Singer). OFAC is hot and resumed its enforcement streak, settling three enforcement actions in three weeks....more
8/4/2020
/ Compliance ,
Corruption ,
Economic Sanctions ,
Enforcement Actions ,
Export Controls ,
Failure to Comply ,
Foreign Policy ,
Foreign Relations ,
Goods or Services ,
Iran ,
Iran Sanctions ,
Office of Foreign Assets Control (OFAC) ,
Trump Administration ,
White Collar Crimes
Steele Compliance Solutions recently announced the global rollout of its new “Risk Intelligence Data” platform. Companies are suffering from information overload -- with new technologies, companies can manage information to...more
The Justice Department and OFAC announced a settlement with Essentra FZE Company Limited (“Essentra FZE”), a cigarette filter and tear tape manufacturer, for violation of the North Korea Sanctions Program. The violations...more
DOJ announced a False Claims Act settlement with Universal Health (“UHS”) and related companies for $122 million for billing for medically unnecessary inpatient behavioral health services, failing to provide adequate services...more
7/27/2020
/ Compliance ,
Corruption ,
Department of Justice (DOJ) ,
Enforcement Actions ,
False Billing ,
False Claims Act (FCA) ,
Health Care Providers ,
Healthcare Fraud ,
Kickbacks ,
Medicaid ,
Medicare
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
Amazon joins the exclusive club of high-tech OFAC violators. Last year, Apple settled with OFAC for sanctions violations. This year, we can add Amazon to the list of OFAC violators. ...more
7/22/2020
/ Amazon Marketplace ,
Compliance ,
Corruption ,
Crimea ,
Economic Sanctions ,
Export Controls ,
General Licenses ,
Iran ,
Iran Sanctions ,
Office of Foreign Assets Control (OFAC) ,
Prohibited Transactions ,
Screening Procedures ,
Syria
On July 2, 2020, DOJ and the SEC issued revised FCPA Guidance. The Revised Guidance continues to be a valuable document, which contains important discussions of relevant cases, DOJ and SEC policies, and enforcement...more
DOJ announced the arrest of two individuals, Luis Martinelli Linares and Ricardo Martinelli Linares, who are the sons of the former President of Panama, Ricardo Martinelli) for their role in funneling $28 million in bribes to...more
7/17/2020
/ Bribery ,
Compliance ,
Corruption ,
Department of Justice (DOJ) ,
Foreign Corrupt Practices Act (FCPA) ,
Fraudulent Wire Transfers ,
Government Officials ,
Odebrecht ,
Offshore Banks ,
Offshore Funds ,
Panama ,
Shell Corporations ,
White Collar Crimes
The initial FCPA Guidance included valuable compliance program guidance keyed to the heading, “Hallmarks of an Effective Compliance Program.” Issued in 2012, the outline of an effective compliance program was an important...more
FCPA practitioners often debate whether the FCPA is “clear” or “ambiguous.” Like all important issues in life (assuming this is important), the answer really depends on the specific language. Congress’ ability to write...more
The Justice Department has continued at a steady rate to tweak relevant policies applicable to FCPA enforcement. The Revised FCPA Guidance has incorporated these policies....more
Over the last eight years, FCPA litigation has increased. Companies are still avoiding the risks of litigation and losing to the Justice Department and the SEC. Individuals, on the other hand, have clear incentives to...more
In the dead of night, July 2, 2020, DOJ and the SEC issued the Second Edition of its FCPA Guidance.
A comparison of the First and Second Editions was released by Dick Cassin at The FCPA Blog, and is set forth....more