The Justice Department “listens and learns” from companies and compliance practitioners. As part of every enforcement action, DOJ prosecutors review and assess compliance programs in accordance with the standards explained in its recent Evaluation of Corporate Compliance Programs issued on April 30, 2019. DOJ prosecutors have seen it all when it comes to compliance. Prosecutors have observed compliance train wrecks – companies that have suffered...
In its continuing aggressive FCPA criminal enforcement program, DOJ announced the indictment of two former Alstom executives and a former Marubeni executive with FCPA violations arising from a bribery scheme in Indonesia. A copy of the indictment is here. The three former executives included: Reza Moenaf, the former president of Alstom’s Indonesia subsidiary; Eko Sulianto, the former director of sales of Alstom’s Indonesia subsidiary; and...
The Volkov Law Group is offering a great opportunity for a junior associate and a paralegal. The Volkov Law Group is a nationally-recognized boutique law firm that offers a variety of services, including criminal defense, securities compliance and defense, and ethics and compliance services, including anti-corruption, export and sanctions compliance, anti-money laundering, due diligence and internal investigations. As a leader in ethics and compliance and enforcement defense,...
This year, 2020, has been an enforcement year opening with billion-dollar settlements: first, Airbus settled FCPA charges for $4 billion, and now Wells Fargo for $3 billion. What a start to an enforcement year! We all have heard about the Wells Fargo debacle, and I have written repeatedly about Wells Fargo’s blatant misconduct. Wells Fargo has defined itself as a company lead by rotten senior...
Companies are rapidly implementing automated solutions for compliance program functions. Technology accelerates compliance program performance and creates opportunities to measure and evaluate a company’s compliance program. In this Episode, Michael Volkov discusses how to measure and evaluate a compliance program using data generated from automated platforms.
The Fourth Circuit joined the fast-growing club of federal courts objecting to federal prosecutors and agents reliance on so-called “filter-team” procedures to review documents seized from a law firm that may contain privileged attorney-client and work product information. The Court’s decision is here. Over the last twenty years, federal prosecutors and agents have relied on filter team procedures to review documents and other materials that...
We often hear about the dangerous risk to a company’s culture from rigorous sales incentive programs. Like most issues, the answer to this issue is not cut and dried. On the one hand, we have a glaring example of failure – the Wells Fargo case. Financial sales staff were subjected to an incredible sales program – for each client, a sales employee was required to...
As companies move forward on third-party risk management programs, and as automated third-party risk solutions are being implemented, compliance professionals have to re-examine and re-balance the allocation of resources and time among three separate functions: (1) onboarding due diligence; (2) monitoring third-party conduct; and (3) review and audit of third-parties. Over the last ten years, companies have focused on initial due diligence and onboarding procedures,...
In a comprehensive enforcement action, the Office of the Comptroller of Currency (OCC) announced a $17.5 million settlement with former Wells Fargo Bank CEO John Stumpf for his role in the sales practices misconduct scandal. In addition, the OCC announced settlements with two other Wells Fargo executives: (1) Hope Hardison, former Chief Administrative Officer and Director of Human Resources, Cease and Desist Order and $2.25 million...
Corporate boards are under increasing attack by investors, shareholders and the public. In the aftermath of corporate legal train wrecks, such as the Wells Fargo, Volkswagen Emissions, General Motors, J.P. Morgan 1MDB Malaysia, and increased demand for sustainability, ESG and other shareholder public policy objectives, corporate board members have a significant target on their respective backs. Corporate governance is at a critical juncture. The old-line,...
