Corruption, Crime & Compliance

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12 Nov, 2019

California AG Issues California Consumer Privacy Act Regulations

Last month, the California Attorney General released draft regulations for the California Consumer Privacy Act (CCPA). (Here). The regulations focus on three primary areas: (1) consumer notices; (2) consumer requests for information and handling of information; and (3) verification requirements. The implementation date for the CCPA is January 1, 2020. The deadline for submission of comments is December 6, 2019. The regulations will not become...

General

11 Nov, 2019

Under Armour Under DOJ and SEC Investigation For Revenue Recognition Scheme

The Justice Department and the SEC have launched criminal and civil accounting fraud investigations against Under Armour. The sportswear maker has been suffering a rapid revenue decline over the last few years. The allegations focus on Under Armour’s accounting practices and shifting of sales from quarter to quarter to present a healthier picture of its finances than was actually occurring. Under Armour Culture Problems Over...

Podcasts

10 Nov, 2019

Episode 116 — Alstom Executive Convicted of FCPA and Money Laundering Offenses

Lawrence Hoskins, a UK citizen and former Alstom executive, was convicted last Friday on 11 of 12 counts for his role in a bribery scheme involving Indonesian officials. Hoskins conviction took years to secure because of jurisdictional challenges and appeals. Hoskins was originally indicted in 2013. The jury deliberated for one day – a resounding victory for DOJ prosecutors. Hoskins’ defense team launched an unusual defense, claiming that...

General

6 Nov, 2019

FINRA Fines BNP Paribas $15 Million for Anti-money Laundering Violations

The Financial Industry Regulatory Authority is not known for its aggressive enforcement record. But that may be changing. FINRA recently fined BNP Paribas for $15 million for anti-money laundering deficiencies in the broker-dealer unit’s operations that allowed billions of dollars’ worth of suspicious penny stock and foreign currency transactions. BNP’s senior management failed to respond to repeated warnings from staff that the firm’s minimal AML...

General

5 Nov, 2019

Two Charitable Foundations Pay $6 Million for Anti-Kickback Violations

Two charitable foundations that helped patients pay for drug co-payments settled anti-kickback charges for $6 million. The Patient Access Network Foundation (PANF) agreed to pay $4 million and Good Days agreed to pay $2 million to resolve AKS allegations. The charitable foundations were used as pass throughs for Denderon, Astellas, Amgen and other drug companies to funnel money to Medicare patients taking their drugs. The...

General

4 Nov, 2019

Justice Department Unseals Unaoil Executives’ FCPA Guilty Pleas

The Justice Department announced that three Unaoil executives entered FCPA guilty pleas last year. The three executives cooperated with law enforcement in the investigation and prosecution of other companies and individuals. In March 2018, the former Unaoil CEO, Cyrus Ahsani, and former Unaoil chief operations officer, Saman Ahsani, plead guilty to one count of FCPA conspiracy for paying millions in bribes to foreign officials in...

Podcasts

3 Nov, 2019

Episode 115 — Review of Recent Healthcare Fraud Enforcement Actions

The Justice Department has aggressively continued to pursue False Claims Act prosecutions against healthcare companies and physicians. By the mid-point of 2019, DOJ had collected over $800 million against pharmaceutical and healthcare professionals. In the last few months, DOJ has brought several significant prosecutions. In this Episode, Michael Volkov reviews recent healthcare fraud enforcement cases.

General

28 Oct, 2019

Five Steps to Improve Board Monitoring of Compliance

In today’s aggressive enforcement environment, corporate board members have a target on their respective backs. Even with robust liability insurance, corporate boards are operating in a state of “ignorance is bliss.” Chief compliance officers face enormous challenges, and perhaps their greatest challenge is enlisting and securing the support of the corporate board. We often hear about happy-talk about senior management and board support – but...

Events

27 Oct, 2019

Why A Duck — Episode 6, Coconuts and the OFAC Compliance Framework

In this Episode, Tom Fox and Mike Volkov discuss the Marx Brothers movie, Coconuts, and the new OFAC Compliance Framework. Listen HERE Tom and Mike address the following issues: Why has Mike Volkov called the OFAC Compliance Framework a ‘game-changer’? How does the OFAC Framework illustrate regulatory convergence? What are some of the highlights of the OFAC Framework? What are some of the key lessons...

Podcasts

27 Oct, 2019

Episode 114 — Update on Board Member Liability for Compliance Oversight Failures

Corporate board members have an obligation to oversee and monitor a company’s compliance program. In two recent cases, Delaware courts have tightened the standard governing board liability under the Caremark decision. Several months ago, in a case involving the Blue Bell Ice Cream listeria outbreak, the Delaware Supreme Court applied a heightened standard when relating to “mission-critical” issues involving food safety to a food company. In another...