The Biden Administration has a lot on its plate – that is obvious. Tackling the COVID-19 pandemic and restoring economic growth is one of the most difficult challenges ever facing our country....more
2/16/2021
/ Biden Administration ,
Compliance ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Enforcement Guidance ,
Ethics ,
Foreign Corrupt Practices Act (FCPA) ,
Fraud ,
Office of Foreign Assets Control (OFAC) ,
Regulatory Reform ,
White Collar Crimes
While my first posting highlighted the positive developments in the CCO’s role and professional development, the next two postings present troubling concerns....more
In 2020, the Justice Department brought criminal charges against 22 individuals in FCPA-related investigations. While this was a decline from the two preceding years, COVID-19 had a dramatic impact on criminal FCPA...more
1/29/2021
/ Bribery ,
Compliance ,
Corruption ,
Criminal Prosecution ,
DAPA ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Guilty Pleas ,
South Korea ,
White Collar Crimes
Deutsche Bank’s ethics and compliance function faces numerous challenges. Deutsche Bank has a storied record of scandals, government enforcement actions and failures to abide by prior deferred prosecution agreements (DPAs)....more
1/27/2021
/ Bribery ,
Compliance ,
Compliance Management Systems ,
Corporate Culture ,
Corruption ,
Deutsche Bank ,
Enforcement Actions ,
Ethics ,
Failure to Comply ,
Foreign Corrupt Practices Act (FCPA) ,
Fraud ,
Internal Controls ,
Spoofing ,
White Collar Crimes
Deutsche Bank, the infamous German bank connected to President Trump, settled FCPA and fraud cases with the Justice Department and the SEC, and agreed to pay a total of $130 million....more
1/26/2021
/ Books & Records ,
Commodities ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Deutsche Bank ,
Disgorgement ,
Foreign Corrupt Practices Act (FCPA) ,
Fraud ,
Futures ,
Risk Management ,
Securities and Exchange Commission (SEC) ,
Settlement ,
Spoofing ,
Third-Party Risk
In 2020, the Justice Department did not insist on the appointment of any independent compliance monitors. The year before, in 2019, DOJ insisted on the appointment of three independent corporate monitors – MTS...more
Bear with me for a second, but remember Presidential Candidate Romney’s statement in 2011 that “Corporations are people.” Starting with that premise, my so-called “Person” of the Year award for 2020 goes to, drumroll . . ....more
1/13/2021
/ 1MDB ,
Bonds ,
Bribery ,
Compliance ,
Corruption ,
Criminal Prosecution ,
Ethical Standards ,
Foreign Corrupt Practices Act (FCPA) ,
Goldman Sachs ,
Malaysia ,
Regulatory Violations ,
White Collar Crimes
The Justice Department and the Securities and Exchange Commission had another record year of enforcement. In fact, the last four years of FCPA enforcement included two years of record enforcement – 2019 and 2020. After...more
Well, it is that time again. I get to put on my Carnac the Magnificent Hat and offer my FCPA predictions for 2021.
I should get a pass on my 2020 FCPA Predictions posting because no one could have anticipated the COVID-19...more
DOJ and the SEC have provided unprecedented compliance guidance and information. DOJ has established itself as the preeminent leader in advancing ethics and compliance programs, best practices and innovations. No agency or...more
The Justice Department and the Securities and Exchange Commission had another record year of enforcement. In fact, the last four years of FCPA enforcement included two years of record enforcement – 2019 and 2020. After...more
1/4/2021
/ 1MDB ,
Airbus ,
CFTC ,
Compliance ,
Corporate Counsel ,
Corruption ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Goldman Sachs ,
Herbalife ,
Novartis ,
Regulatory Violations ,
Securities and Exchange Commission (SEC) ,
White Collar Crimes
The internal controls provision in the FCPA statute has broad application to a variety of situations beyond foreign bribery. The Securities and Exchange Commission knows full well the power of the internal controls provision...more
12/16/2020
/ Compliance ,
Corporate Sales Transactions ,
Failure To Disclose ,
Foreign Corrupt Practices Act (FCPA) ,
Internal Controls ,
Negotiations ,
Securities and Exchange Commission (SEC) ,
Securities Violations ,
Settlement Agreements ,
Share Buybacks ,
Stock Repurchases
It is always interesting to watch the flow of risk management trends, particularly as they impact ethics and compliance issues. Financial companies have been the target of regulatory enforcement actions for risk management...more
The Justice Department is coming to the close of a record FCPA enforcement year despite the disruptions caused by the pandemic. The Vitol case also represents the first parallel prosecution involving the Commodities Futures...more
The Justice Department continues to produce FCPA resolutions in a record year for enforcement. The latest, and perhaps the beginning of several end-of-year and end of the Trump Administration resolutions, is DOJ’s settlement...more
12/8/2020
/ Anti-Corruption ,
Bribery ,
Corporate Counsel ,
Corruption ,
Criminal Prosecution ,
Deferred Prosecution Agreements ,
Department of Justice (DOJ) ,
Disgorgement ,
Ecuador ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Money Laundering ,
Oil & Gas ,
Petrobras ,
White Collar Crimes
Here is another obvious point – internal controls are intended to ensure compliance with relevant policies and procedures. Internal controls are not just for show, or not just limited to financial reporting. A compliance...more
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
The breadth of Goldman Sachs’ corruption in the recent DOJ and SEC FCPA enforcement action underscored the important global goal of reducing corruption. It goes without saying – corruption has a pernicious impact on economic...more
11/11/2020
/ 1MDB ,
Bribery ,
Compliance ,
Corruption ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Foreign Corrupt Practices Act (FCPA) ,
Goldman Sachs ,
Malaysia ,
Regulatory Violations ,
Securities and Exchange Commission (SEC) ,
White Collar Crimes
Beam Suntory, a global producer and distributor of distilled beverages, settled its FCPA case with DOJ for $19.5 million for bribes paid in India.
The DOJ settlement follows an SEC FCPA settlement for $8 million announced...more
11/9/2020
/ Anti-Bribery ,
Books & Records ,
Bribery ,
Compliance ,
Corporate Counsel ,
Corruption ,
Deferred Prosecution Agreements ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
India ,
Internal Controls ,
Sales & Distribution Agreements ,
Securities and Exchange Commission (SEC) ,
White Collar Crimes ,
Wine & Alcohol
Goldman Sachs now sits atop all charts with the largest US FCPA bribery penalty, totaling approximately $2.9 billion. The second largest is Ericsson’s 2019 FCPA settlement for $1 billion....more
10/27/2020
/ 1MDB ,
Bribery ,
Compliance ,
Corruption ,
Criminal Prosecution ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Goldman Sachs ,
Malaysia ,
Regulatory Violations ,
Settlement Agreements ,
White Collar Crimes
The Justice Department finally closed out its investigation of Goldman Sachs’ massive bribery scheme involving Malaysia’s 1MDB fund. The case is now the largest in US FCPA history (based on its payment to DOJ and related US...more
10/26/2020
/ 1MDB ,
Bribery ,
Compliance ,
Corruption ,
Criminal Prosecution ,
Deferred Prosecution Agreements ,
Foreign Corrupt Practices Act (FCPA) ,
Goldman Sachs ,
Malaysia ,
Securities and Exchange Commission (SEC) ,
White Collar Crimes
Shortly before announcing its comprehensive FCPA settlement with DOJ and the SEC, Pilgrim’s Pride agreed with the Justice Department’s Antitrust Division to plead guilty to price-fixing in the chicken processing industry....more
10/26/2020
/ Bribery ,
Cartels ,
Compliance ,
Corruption ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Internal Controls ,
Meat Processing Plants ,
Price-Fixing ,
Securities and Exchange Commission (SEC) ,
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 SEC settled with J&F Investmentos (“J&F”) for approximately $27 million. Unlike the DOJ settlement, the SEC included JBS and Joseley and Wesley Batista in its enforcement action. The factual predicate for the settlement...more
10/21/2020
/ American Depository Receipts (ADRs) ,
Bribery ,
Compliance ,
Corruption ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Internal Controls ,
Meat Processing Plants ,
Securities and Exchange Commission (SEC) ,
White Collar Crimes
J&F’s Investmentos bribery scheme was pervasive and was coordinated with a senior Brazilian Finance minister and orchestrated through the use of United States banking. The Brazilian official appears to be Guido Mantega, who...more