Category: General

28 Oct, 2021

Implementing ESG Programs: Structure and Responsibilities (Part I of III)

ESG – the initials that are transforming corporate missions, purposes and structures, fueled by stakeholder and investor demand. It is a significant moment in corporate and stakeholder interactions. Companies recognize the responsibilities but even more importantly, the opportunities, to build a sustainable and financially profitable organization. But there are significant changes that have to occur along with the ESG objective. I am dubious about the...

General

26 Oct, 2021

Takeaways from OFAC’s Sanctions Compliance Guidance for Virtual Assets and Cryptocurrency

Matt Stankiewicz, Partner at The Volkov Law Group, joins us for a post on sanctions compliance in the cryptocurrency industry. Matt can be contacted at [email protected]. In early October, OFAC released a guidance brochure on sanctions compliance, specifically tailored for the cryptocurrency and virtual assets industry. For seasoned compliance veterans, it ends up reading like a refresher course for sanctions compliance. While the guidance was...

General

26 Oct, 2021

Credit Suisse’s Global Bribery and Fraud Scheme (Part II of II)

The Credit Suisse case highlights the significant impact that global corruption and fraud can have on developing economies. Mozambique’s economy suffered serious harm from the scheme, which started to unravel when the IMF uncovered problems with the financing and accounting for the tuna fishing project. The Mozambican people have suffered real and significant harm directly as a result of this criminal scheme. Additionally, the Credit...

General

25 Oct, 2021

Credit Suisse Settles Multi-Jurisdiction Bribery and Fraud Case for $547 Million (Part I of II)

Credit Suisse Group AG (“Credit Suisse”), a global financial institution, and its London-based European subsidiary, Credit Suisse Securities (Europe) Limited (“CSSEL”) resolved a wide-ranging bribery and fraud scheme involving investments and financing arrangements for an $850 million loan for a tuna fishing project in Mozambique. To resolve the violations, Credit Suisse agreed to pay a total of $547 million in penalties, fines and disgorgement as...

General

21 Oct, 2021

An Aggressive Export Control Enforcement Program: The Department of Commerce’s Bureau of Industry and Security

My old adage – when it comes to enforcement initiatives, the government always tells you what they are going to do and then they do it. It is always baffles me when targets of enforcement actions complain that they did not know the government was going to launch an investigation or enforce the law in a particular manner. The Justice Department is fairly transparent in...

General

19 Oct, 2021

Delaware Court Rejects Motion to Dismiss Lawsuit Against Boeing Board Members for Failure to Conduct Proper Compliance Oversight (Part III of III)

The Delaware Chancery Court is continuing its trend of permitting Caremark claims against corporate board members who fail to exercise proper oversight and monitoring of compliance programs. The Delaware Court’s latest decision involving the Boeing board and its failure to conduct proper oversight of the 737 MAX safety scandal is yet another example. At bottom, the Chancery Court is raising the stakes on board member...

General

19 Oct, 2021

The Forkner Indictment for the Tragic Boeing 737 MAX Fraud and Crashes (Part II of III)

Mark Forkner, a former Chief Technical Pilot, was indicted on two counts of fraud involving aircraft parts in interstate commerce and four counts of wire fraud. If convicted, he faces a maximum penalty of 20 years in prison on each count of wire fraud and 10 years in prison on each count of fraud involving aircraft parts in interstate commerce. Boeing began to develop the...

General

18 Oct, 2021

Boeing Technical Pilot Indicted for Fraud in 737 MAX Scandal (Part I of III)

The Justice Department announced the indictment of Mark Forkner, a former Chief Technical Pilot for Boeing for his role in the 737 MAX scandal. Specifically, Forkner is charged with deceiving the FAA’s Aircraft Evaluation Group (“FAA AEG”) relating to Boeing’s 737 MAX airplane and defrauding Boeings U.S.-based airline customers to earn millions of dollars for Boeing. Boeing’s 737 MAX scandal is tragic and disturbing. In...

General

15 Oct, 2021

FINRA Reminds Broker-Dealers on Importance of Compliance with New AML Rules

The new Anti-Money Laundering laws and regulations continue to roll out with new risks, liabilities and compliance requirements. There is a coming AML enforcement storm, fueled by a new AML whistleblower program that will operate in a manner similar to the SEC’s successful whistleblower program. The AML Act of 2020 increased penalties for AML offenses, adopted investigative improvements to expand the reach of AML investigations...

General

14 Oct, 2021

CCOs: Expert Problem Solvers

If you follow my blog, you know that I am passionate about the compliance profession. Chief compliance officers have unique talents, expertise and leadership qualities. CCOs are committed ethics warriors. No one else can claim that same mission. CCOs are the natural stewards of a company’s ethical culture. Of course, a company can appoint a separate chief ethics officer to distinguish between the ethics and...