The Department of Justice (DOJ) has announced a number of modifications to its policies governing prosecution of corporations for criminal and civil violations of law.  In 2017, DOJ announced its FCPA Corporate Enforcement Policy.  Over the last year, DOJ expanded this policy to apply to non-FCPA corporate violations, as well as mergers and acquisitions.  In addition, DOJ recently announced the adoption of an Anti-Piling On...

Corporate compliance departments are rapidly implementing their own internal audit function — operating their own internal compliance monitoring and audit function.  No longer can compliance departments rely on internal audit to report on the compliance department’s operations.  Companies have to implement internal (or external) audit procedures. In this episode, Michael Volkov discusses how to conduct a compliance audit.

Companies have to focus on compliance controls and non-material financial transactions to prevent fraud, bribery and other misuse of corporate funds.  One particular risky area is the control of gifts, meals, entertainment, and travel expenses.  In this new era of compliance, companies have to adopt proactive and automated strategies to mitigate risks of unauthorized GMET expenditures. In this episode, Michael Volkov discusses GMET risks and...

Goldman Sachs’ role in the 1MDB scandal continues to draw scrutiny.  Justice Department prosecutors are investigating the extent to which Goldman Sachs knew and participated in the 1MDB scandal, and what penalty, if any, Goldman Sachs should pay.  The recent indictment and guilty plea of two former Goldman Sachs officials represents a significant development in the ongoing investigation. In this episode, Michael Volkov discusses recent...

Stryker Corporation has suffered a second FCPA enforcement action, and will now bear the stigma of FCPA “recidivist.”  In reaching a settlement with the SEC and agreeing to pay a $7.8 million civil penalty, Stryker will now be subject to an SEC-imposed compliance monitor. In this episode, Michael Volkov reviews the facts surrounding the Stryker SEC settlement.

The Department of Treasury’s Office of Foreign Asset Control (OFAC) recently settled a long-active enforcement action with Epsilon relating to alleged violations of the Iran Sanctions Program.  After a mixed decision from the US Court of Appeals for the District of Columbia Circuit, OFAC negotiated a $1.5 settlement for 39 violations of the Iran Sanctions Program.  Along the way, however, OFAC secured favorable rulings affirming...

The Trump Administration has aggressively restricted commerce with Cuba and Venezuela.  With respect to Cuba, the Trump Administration has re-imposed strict regulations on commerce with Cuba, reversing several Obama-era regulations easing such restrictions.  At the same time, the Trump Administration has continued Obama era policies tightening trade with Venezuela and opposing the Maduro leadership in Venezuela. In this episode, Michael Volkov discusses recent updates to...

Companies face a myriad of risks that can cause significant legal and reputational risks.  A company’s employees are critical sources of concerns to prevent and detect problems.  Employees have to be encouraged to raise concerns to help the company address these problems proactively.  As a result, it is critical for companies to invest and promote its speak up culture to maximize employee communication and prevent...

United Technologies recently settled an FCPA enforcement action with the SEC by paying $13.9 million for bribes paid by its elevator and aircraft businesses. UT disclosed the investigation to DOJ and the SEC in late 2013 or early 2014. DOJ declined to prosecute in March 2018. UT agreed to disgorge $9 million, plus interest of about $919,000 and to pay a penalty of $4 million. The SEC’s FCPA settlement contains...