The Justice Department continues to produce FCPA resolutions in a record year for enforcement. The latest, and perhaps the beginning of several end-of-year and end of the Trump Administration resolutions, is DOJ’s settlement with Vitol, Inc. (Vitol), an energy trading company. DOJ agreed to a three-year deferred prosecution agreement (DPA) in exchange for a criminal penalty of $135 million. One-third of the payment, or $45...
Brian Whisler is a long-time white collar practitioner at Baker McKenzie. Brian joined me to discuss the new Biden Administration and the enforcement outlook from the Biden Department of Justice. Brian has a unique perspective since he served as part of the DOJ transition in 2001 for the incoming Bush Administration. Brian’s Profile is Here. The Episode/Interview is HERE.
Banking regulators have been flexing their muscles. With the coming Biden Administration, this may portend the beginning of a new, enforcement wave. Some have suggested that banks are resolving these cases before a more aggressive approach is taken by the new Biden Administration. Citigroup recently was tagged for $400 million by the Treasury Department’s Office of the Comptroller of the Currency (OCC). The OCC also...
Here is another obvious point – internal controls are intended to ensure compliance with relevant policies and procedures. Internal controls are not just for show, or not just limited to financial reporting. A compliance program is a subset of a company’s internal controls. So, all this is well and good. But it appears that a number of companies have been getting into trouble because they...
Companies have to implement a sanctions compliance program (SCP). When I use the term SCP, I mean much more than just having one employee screen a customer before a shipment is sent. Too many companies are behind the 8-ball when it comes to sanctions compliance. The Treasury Department Office of Foreign Asset Control’s sanctions guidance issued in May 2019 is an extraordinary document and includes...
In a far-reaching action, the Health and Human Services – Office of Inspector General (HHS-OIG) issued a Special Fraud Alert underscoring the “inherent fraud and abuse risks” associated with company-sponsored speaker programs. Copy of Special Alert Here. HHS-OIG’s Fraud Alert is an important warning to pharmaceutical and medical device companies. It directly applies to U.S. companies’ domestic speaker programs, but the analysis and observations have...
Banking regulators, the Office of Comptroller of the Currency and the Federal Reserve, recently collected a $400 million civil penalty against Citigroup for long-standing deficiencies in its enterprise risk management, compliance controls and overall banking practices. The Consent Order is Here. The aggressive enforcement action was the result of Citigroup’s continuing deficiencies in its operations, risk oversight and management practices. The OCC cited Citigroup for...
To our clients, colleagues, and friends, we wish everyone a Happy Thanksgiving!! We are grateful for opportunities to collaborate, and our deep appreciation for your support and friendship. Our very best wishes for a happy and safe Thanksgiving!!
Over the last twenty year (yes, 20 years), the Justice Department’s civil and criminal enforcement record has come under greater scrutiny. Whether you call it “Too Big To Jail” or “Too Big to Fail,” questions continue to rise on whether “big” companies are fairly investigated and prosecuted. On the “Too Big to Fail” scale. DOJ and criminal justice commentators point to the Arthur Andersen criminal...
Companies have had over one year to review and implement a sanctions compliance guidance program. This last year, however, has been difficult (to say the least) given the COVID-19 pandemic. Companies have had unusual challenges. OFAC recognized the impact of COVID-19 when it issued guidance in April 2020 recognizing that companies faced challenging times and may have reallocated resources to meet pandemic needs. Prior to...
