A clear pattern has emerged in Justice Department corporate enforcement over the past several months, and it is worth compliance officers and general counsel taking notice: companies are being charged far less often, even in cases where prosecutors believed executives or managers were personally involved in the underlying wrongdoing, and that reduced corporate exposure has not been matched by a corresponding increase in individual prosecutions....

In my last post, I made the affirmative case for CCO empowerment — a direct reporting line to the CEO and a dotted line to the audit committee. Today I want to address the disturbing counter-trend: companies moving compliance back under the general counsel, often justified as cost discipline or organizational simplification. Make no mistake about what this movement represents. It is a retreat from...

Parts 1 and 2 of this series covered the terms of The Scoular Company’s deferred prosecution agreement and the mechanics of the bribery scheme itself, a six-year pattern of $2,000 payments per train, dressed up as reinspection fees, paid through customs brokers to keep contaminated agricultural shipments moving across the U.S.-Mexico border. In this final installment, we draw out the practical lessons for compliance officers,...

In Part 1 of this series, we outlined the terms of The Scoular Company’s deferred prosecution agreement and how DOJ applied its Corporate Enforcement and Voluntary Self-Disclosure Policy to the case. In Part 2, we go deeper into the facts themselves, because the mechanics of this scheme, and the specific control gaps that allowed it to run for six years, are exactly the kind of...

The Justice Department’s foreign bribery resolution with The Scoular Company, an Omaha, Nebraska-based agricultural supply chain company, is one of the more unusual FCPA cases in recent memory. It did not arise from a company chasing a government contract or a licensing decision abroad. It arose from routine cross-border logistics, corn and other agricultural shipments moving from the United States into Mexico, and a bribery...

Every so often, corporate governance debates that we thought were settled come roaring back. The reporting line for the chief compliance officer is one of them. For years, the trend line pointed in the right direction — more companies elevating the CCO to report directly to the CEO, with independent access to the board. Lately, I am seeing troubling signs of backsliding, with companies quietly...