When prosecutors turn on you, watch out. The economy is full of fraudsters, many of whom escape detection. Conmen, liars and cheats abound – when they get caught, however, the consequences can be severe. Interestingly, the SEC’s enforcement regime extends beyond the public markets and includes private companies. In the technology sector, there are numerous technology start-ups, all living for the dream to be acquired...
When I was a federal prosecutor and investigating corporations for misconduct, I imagined a well-oiled machine with vast resources, capable of overwhelming government prosecutors and law enforcement agents with lawyers, resources and influence. Prosecutors typically view corporations with this inflated perspective. After working with companies and gaining insights into internal corporate functions, I have realized that prosecutors routinely inflate corporate resources, capabilities and influence. Except...
I recently came across a paper prepared by students from Columbia’s School of International and Public Affairs that delves into the benefits that cryptocurrency and the blockchain can provide to the world’s unbanked. Specifically, the paper discusses how cryptocurrencies can help with “reaching and benefitting the unbanked/underbanked people, who do not make use of traditional financial services, including banks.” Gemini Trust Company, LLC, one of...
Corporate leaders and executives like to mouth the words surrounding corporate culture. It is part of the code they all use with each other. Few of them, however, really know what the word means or even dare to understand the importance to their business. Let’s face it – corporate leaders and executives like to talk the talk but they rarely if ever understand what they...
Corporate families can carry the traits of a smaller family – what do I mean by this quip? An absent parent inevitably causes harm to a family. Families depend on connection, support and ultimately intimacy. Corporations, by analogy, are not much different. An absent CEO can have a serious negative impact on company culture and performance. Some leaders do not like to engage. Other leaders...
Recently, the SEC announced a settlement with Kraft Foods for $62 million and with two Kraft executives for financial reporting misstatements. Along with the corporate settlement with Kraft, the SEC announced proposed settlements with Kraft’s former COO Eduardo Pelleissone and its former Procurement Officer Klaus Hoffman for their roles in the reporting fraud. During the period of 2015 to 2018, Kraft committed various accounting misconduct,...
Jessica Sanderson, Partner at the Volkov Law Group, will be heading the Master Session at AMPEC’s Congreso Anual Compliance e Innovación. Please tune in to her discussion on the current status of the FCPA and expected trends in the Biden Administration.
The First Bank of Romania and JC Flowers agreed to pay OFAC $862,318 to settle violations of Iran and Syria Sanctions Programs. First Bank is owned by its U.S. parent, JC Flowers & Company. In 2018, JC Flowers acquired a majority stake in First Bank, subjecting Frist Bank to OFAC sanctions. In early 2019, First Bank’s regulator, the National Bank of Romania flagged a U.S....
The United States, the United Kingdom, the European Union, Canada and Switzerland have adopted or expanded sanctions against Belarus, and the Alexander Lukashenko regime. President Biden issued a new executive order that expanded U.S. sanctions authority against Belarus, authorizing the designation of government officials, oligarchs and various companies linked to the Lukashenko regime. The expanded sanctions authority now encompasses various sectors, including defense, energy, security,...
The UK-based Bank of China agreed to pay $2.3 million to settle violations of OFAC’s Sudan Sanctions Program. OFAC repealed the Sudan sanctions in October 2017 but is continuing to investigate violations of the Sudan Sanctions Program that occurred prior to October 2017. The enforcement action was the result of an internal investigation and voluntary disclosure triggered by a bank action blocking a customer transaction. ...
