Ethics and compliance has to stand strong when new trends suddenly spring up. Organizations are always ready to embrace the new-fangled shiny object – in this case ESG. Not to be a nattering nabob of negativism (see Spiro Agnew’s comment in 1966 crafted by William Safire), but organizations have to take a deep breath and renew a review of its ethics and compliance program fundamentals. ...
Raymond Kohut, a 68-year old Canadian citizen, a former employee of Swiss commodities trader, Gunvor Group, Ltd., pleaded guilty to paying $22 million in bribes to Ecuadoran government officials at state-owned oil company, PetroEcuador. Kohut pleaded guilty to one count of money laundering conspiracy before a federal judge in Brooklyn, New York, the Eastern District of New York. Kohut agreed to forfeit $2.2 million. Gunvor...
The Volkov Law Group is pleased to announce the promotion of Matt Stankiewicz to Partner, and the addition of Ameer Gopalani as Senior Counsel to the Firm. Matt Stankiewicz has distinguished himself as a seasoned and talented attorney, who is committed to integrity, ethical values and delivering high-quality, client service. Matt joined the Volkov Law Group in 2013, while completing service as part of the...
The Biden Administration has a number of enforcement priorities. While not listed as a primary objective, the Justice Department and the EPA can be expected to increase criminal enforcement of environmental laws. DOJ’s Environmental Crimes Section (ECS) has had a steady enforcement record but has suffered political ups and downs depending on the political leanings of the administration in power. The critical issue is usually...
ESG is firmly implanted in the corporate governance landscape. Prosecutors and regulatory agencies are quickly adding ESG to their lexicon. The real question for every organization is “what are you doing to address it?” ESG is a terrific opportunity to leverage an organization’s corporate culture to address a broad set of values beyond ESG principles. In this Episode, Michael Volkov discusses the ESG movement and...
There are a lot of so-called “dirty secrets” in the corporate governance world. Not the tawdry kind that appear to follow controversial politicians – I mean in the world of internal controls. I would wager that most companies cannot even identify all of the policies, procedures and controls that have been created during the life of the company. Some exist in what I call the...
The Biden Administration is taking over the reins of government with vigor and focus. The Department of Justice, the Treasury Department, the State Department and the Commerce Department are expected to coordinate closely in an important objective – international anti-corruption efforts. What will this mean? DOJ will increase its focus on FCPA enforcement, Anti-Kleptocracy cases, Anti-Money Laundering, International Trade Sanctions; The Treasury Department’s Office of...
The Justice Department’s Antitrust Division is pushing criminal enforcement against companies for illegal wage-fixing among competitors in the hiring market. After years of warning companies that DOJ intended to prosecute criminal cases for illegal cartel activity in labor markets, DOJ is delivering on its warning. In its third announced criminal case, DOJ has indicted VDA OC, LLC, a health care staffing company that supplied nurses...
In the new Biden Administration, companies should expect aggressive enforcement of trade sanctions. At the same time, in response to Russian aggression and the Solar Winds cyber-attack, OFAC is likely to implement new and even more restrictive sanctions against Russia. In anticipation, companies should elevate the importance of their sanctions compliance programs (SCPs) pursuant to the May 2019 OFAC Framework. Unfortunately, for many companies, sanctions...
It is easy to get lost in ESG. Focus is the key. Leadership has to define the ESG strategy. A designated officer has to lead implementation. The ESG bucket can carry a variety of causes, issues and priorities. Leadership has to sift through these individual items and commit to action. The ESG program now has to be implemented. A first step is to identify opportunities...
