Deutsche Bank’s ethics and compliance function faces numerous challenges.  Deutsche Bank has a storied record of scandals, government enforcement actions and failures to abide by prior deferred prosecution agreements (DPAs).  When you review these matters, Deutsche Bank’s track record reflects serious culture and control deficiencies, including participation of high-level executives in bribery schemes.  Deutsche Bank’s continuing legal and compliance failures are likely to continue unless...

Deutsche Bank, the infamous German bank connected to President Trump, settled FCPA and fraud cases with the Justice Department and the SEC, and agreed to pay a total of $130 million.  The settlement included resolution of fraud charges against Deutsche Bank relating to a commodities fraud scheme, commonly referred to as “spoofing.” Under the global resolution, Deutsche Bank agreed to pay: (1) criminal penalties of...

The Justice Department handed Walmart a huge slap in the face last year with the filing of a comprehensive civil case alleging that Walmart knowingly distributed large quantities of opioids in disregard of the law that fueled the national opioids crisis. In a lengthy complaint (160 pages), DOJ outlined Walmart’s serious deficiencies in its compliance program and its unwillingness to spend money needed to prevent...

Sabre Corporation, the travel technology company, agreed to pay $2.4 million as a settlement with twenty-seven (27) State Attorneys General for a 2017 data breach involving hotel booking services.  In 2017, Sabre suffered a major data breach involving 1.3 million credit cards. Sabre was cited for failing to adhere to state laws governing breach notification and data security in response to a cyberattack against Sabre’s...

The 2020 OFAC enforcement record underscores the importance of sanctions compliance.  Yet, companies appear to move slowly in response to sanctions risks, often relying on outdated or outmoded screening technologies and failing to build basic policy controls and procedures. In reviewing the 2020 enforcement actions, many of the cases involve common miscues and compliance failures.  These cases fall into the following categories: (1) basic screening...

The pandemic and its impact is the story of 2020 – no doubt.  Federal prosecutors and regulatory enforcement agencies faced unprecedented challenges. In the face of these challenges,  however, enforcement almost across the board continued with some significant exceptions relating to individual criminal enforcement.  Prosecutors faced almost impossible obstacles to convening grand juries and conducting court proceedings while the deadly pandemic raged. Despite the challenges...

Whew!  2020 is over and we can start the New Year with hope – a fresh approach to restoring life “as it was before.”  It is hard to imagine life before 2019 because no matter what – we have been changed forever.  So, we need to let go of whatever notion we have of pre-pandemic life.  A positive way to approach this new year is...

In 2020, the Justice Department did not insist on the appointment of any independent compliance monitors.  The year before, in 2019, DOJ insisted on the appointment of three independent corporate monitors – MTS Telecommunications, Fresenius and Wal-Mart.  If you ask me to distinguish between these cases and Goldman Sachs, Novartis or Herbalife, I would be hard pressed to provide a cogent explanation.  Granted, we are...

Jessica Sanderson, Partner at The Volkov Law Group, rejoins us for a posting on recent changes to export regulations involving Hong Kong. Jessica can be reached at [email protected]. Until recently, the U.S. government treated Hong Kong and China as two separate destinations for export control purposes and in many cases provided Hong Kong with preferential treatment.  At the end of 2020, however, on December 23,...

Two days before Christmas, President Trump signed the Criminal Antitrust Anti-Retaliation Act, which prohibits retaliation against employees who report criminal antitrust violations internally or to the government.   The Act was sponsored by Senators Chuck Grassley from Iowa, a long-time supporter of whistleblowers, and Patrick Leahy. From 2010 to 2019, the Antitrust Division has brough criminal enforcement actions that resulted in over $9 billion in criminal...