Category: General

16 Sep, 2020

DOJ and CFTC Settle Spoofing Case with Scotiabank for $127.4 Million

In the last five years, the Justice Department and the Commodities Futures Trading Commission have aggressively prosecuted “spoofing” cases. While the government’s record in these cases has been mixed, the government has been successful in securing guilty pleas and winning high-profile trials against traders. Prosecutors have continued to push spoofing prosecutions to root out the conduct. “Spoofing” refers to traders who engage in bogus conduct...

General

14 Sep, 2020

Deutsche Bank Settles Two OFAC Cases Totaling $583K for Violations of Ukraine-Russia Sanctions

Deutsche Bank continues to have its problems – legal, compliance and reputational. Now, we can add OFAC sanctions compliance to the list of Deutsche Bank’s troubles. Deutsche Bank settled two separate matters with OFAC – one involving the processing of a large transaction connected to IPP Oil Products (Cyprus) Ltd, a Specially Designated National, and another for 61 transactions involving Open Joint Stock Company Krasnodar...

General

14 Sep, 2020

The Importance of the Internal Audit and Compliance Partnership

In the wake of the International Institute of Auditors recent proclamation of a revised and controversial Three Lines of Defense Model, I thought it would be helpful to underscore the importance of the Internal Audit and Compliance functions to effective internal controls, including ethics and compliance programs. In most companies, Internal Audit and Compliance work together effectively to leverage each others’ resources and overall efficiency. ...

General

10 Sep, 2020

Herbalife FCPA Settlement is An Important Reminder: Global Companies Need to Focus on Foreign Government Touchpoints

Jessica Sanderson, Partner at the Volkov Law Group rejoins us for a posting on the Herbalife FCPA settlement and lessons learned. Jessica can be reached at [email protected]. As we look past the Herbalife FCPA settlement with DOJ and the SEC for $123 million to resolve FCPA bribery and books and records violations, we are reminded of the variety of foreign government touchpoints and FCPA risks. ...

General

8 Sep, 2020

DOJ’s Antitrust Division Targets Commercial Flooring Industry for Criminal Cartel Activity

DOJ’s Antitrust Division is increasing criminal antitrust enforcement. After two relatively slow years of criminal enforcement, the Antitrust Division’s criminal enforcement program is steadily increasing. The next five years promises to be a time of aggressive criminal cartel enforcement. DOJ’s Antitrust Division has been racking up indictments and guilty pleas in a long-time cartel operating in the commercial flooring and services industry in the Chicago...

General

7 Sep, 2020

DOJ’s Focus on Criminal Antitrust Enforcement and Government Procurement

Criminal investigations and enforcement programs ebb and flow – not necessarily because of a lack of initiative or some intentional slowdown. Cases take time to investigate and prosecute. The Antitrust Division’s Criminal Enforcement program has always been consistent and successful, fueled by the corporate leniency program instituted in the 1990s and tweaked over the last 25 years. In the last few years, DOJ’s Cartel Enforcement...

General

7 Sep, 2020

Happy Labor Day!

From everyone at The Volkov Law Group, we wish our clients, colleagues, friends and family a Happy Labor Day. To everyone, we thank you for your contributions to our economy and the care of everyone in our country and around the globe. We specifically want to thank our first responders, healthcare workers, volunteers and all those working to keep everyone safe and healthy.

General

3 Sep, 2020

OFAC Settles Enforcement Action with Individual for $5000

I often remind readers – government prosecutors regularly tell you what they plan to do in advance, and then they do it. So do not be surprised when the government does something they told you they would do. In May 2019, OFAC issued its Framework for Sanctions Compliance Commitments. As part of its Guidance. OFAC noted that it intended to increase enforcement actions against individual...

General

2 Sep, 2020

Herbalife’s FCPA Settlement: Lessons Learned (Part III of III)

Herbalife’s FCPA settlement is another one for books – the wreckage left includes two criminal indictments for Chinese officials who may never be apprehended, along with $123 million in penalties. When going through the wreckage, there are serious issues of corporate failures at senior levels of the company along with pervasive and systemic misconduct in China. What is surprising is the obvious red flags of...

General

1 Sep, 2020

Herbalife’s China Bribery Scheme (Part II of III)

Herbalife’s bribery scheme in China stretched across the 28 provinces of China and even involved an Herbalife senior executive in its headquarters in Los Angeles, California. DOJ has indicted Yangling Li, aka Jerry Li, and Hongwei Yang, aka Mary Yang, two Chinese nationals who carried out the scheme. The Statement of Facts provides some important details about the scheme. Herbalife’s business in China depended on...