“Never doubt that a small group of thoughtful, committed, citizens can change the world. Indeed, it is the only thing that ever has.”― Margaret Mead Let’s start with a basic premise – change is a good thing (or the cynics insist, change may be a good thing). But most people do not like change. Most people find change threatening, so they would rather know the devil...
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. Recent converts are embracing “culture assessments” as the new indicator of enlightenment. That is a terrific development. But there is more work to do. To reset the stage, we start with the basic proposition...
The following scenario is disturbing and occurs all too often – a company receives a hotline report of misconduct occurring in its operations in a foreign country, India, for example. The company launches an internal investigation of the matter and substantiates the allegation. Financial misconduct occurred, discipline is imposed, two employees are fired and minor adjustments are made to India’s operations. End of story, case...
Payoneer, Inc., an online money transmitter and prepaid access company, agreed to pay $1.4 million to OFAC to settle violations of multiple sanctions programs. In an ironic twist, Payoneer, which often touts its comprehensive sanctions and anti-money laundering compliance programs to its business customers, had to acknowledge 2,260 apparent violations of OFAC sanctions. Payoneer is a well-known money service business (MSB) and acknowledged that it...
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 scandals grow from itsy-bitsy steps to bigger risks, and eventually to the full corporate embrace. (Thank you Three Stooges, “Slowly I Turned”). Along...
“Never doubt that a small group of thoughtful, committed, citizens can change the world. Indeed, it is the only thing that ever has.”― Margaret Mead Let’s start with a basic premise – change is a good thing (or the cynics insist, change may be a good thing). But most people do not like change. Most people find change threatening, so they would rather know the devil...
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. Recent converts are embracing “culture assessments” as the new indicator of enlightenment. That is a terrific development. But there is more work to do. To reset the stage, we start with the basic proposition...
The following scenario is disturbing and occurs all too often – a company receives a hotline report of misconduct occurring in its operations in a foreign country, India, for example. The company launches an internal investigation of the matter and substantiates the allegation. Financial misconduct occurred, discipline is imposed, two employees are fired and minor adjustments are made to India’s operations. End of story, case...
Payoneer, Inc., an online money transmitter and prepaid access company, agreed to pay $1.4 million to OFAC to settle violations of multiple sanctions programs. In an ironic twist, Payoneer, which often touts its comprehensive sanctions and anti-money laundering compliance programs to its business customers, had to acknowledge 2,260 apparent violations of OFAC sanctions. Payoneer is a well-known money service business (MSB) and acknowledged that it...
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 scandals grow from itsy-bitsy steps to bigger risks, and eventually to the full corporate embrace. (Thank you Three Stooges, “Slowly I Turned”). Along...
While billionaires continue to trumpet their excess and competitive desires to fly into space, they may want to take a look around before launching themselves on the next rocket to the edge of space for a ten-minute flight. John Glenn’s first manned flight carried much greater import and influence over the world’s imagination. Corporate leaders need to address the world’s challenges – the pandemic, climate...
Avanos Medical, a global medical device company, agreed to pay $22 million to resolve criminal charges relating to its fraudulent misbranding of its MicroCool surgical gowns. Avanos Medical falsely labeled the surgical gowns as providing the highest level of protection against fluid and virus penetration. As part of the settlement, Avanos Medical agreed to a three-year deferred prosecution agreement (DPA), in exchange for a payment...
The Justice Department’s Antitrust Division returned a criminal indictment against Seris Security and three executives, Danny Vandormael, CEO of Seris, Peter Verpoort, Director for Security at Seris, and Jean Paul Van Avermaet, CEO of G4S Secure Solutions, for participating in the bid-rigging conspiracy for U.S. and NATO security contracts. All of the defendants are Belgian nationals. In a separate action, G4S Secure Solutions entered into...
The health care industry is taking it on the chin these days. As DOJ increases False Claims Act prosecutions, the primary targets are pharmaceutical, medical device and health care providers. So let’s add to the list of risks and prosecutions coming down the line – DOJ’s Antitrust Division is targeting health care companies for labor market collusion agreements among competitors not to solicit or hire...
A False Claims Act case can easily turn into a criminal prosecution. The Federal Bureau of Investigation often initiates criminal investigations as part of its commitment to reducing health care fraud. Working closely with an Assistant U.S. Attorney, DOJ often prosecutes physicians, lab owners, and associates in criminal cases stemming from fraudulent billing and unnecessary medical services. In a stark example, the owner and a...
Board and Fraud – a Jonathan T. Marks Blog
