Corruption, Crime & Compliance

Featured Articles:

2 Jul, 2019

A Classic Criminal Investigation: Unraveling PDVSA Corruption

The Justice Department has been criticized on numerous occasions about its approach to criminal investigations and prosecutions. In a recent decision, the chief judge in the Eastern District of New York criticized DOJ for “outsourcing” criminal investigations to outside counsel who conduct internal investigations under DOJ review. I have long predicted that courts would eventually impose criminal procedural protections in the context of criminal internal...

General

1 Jul, 2019

TechnipFMC Settles FCPA Violations for $296 Million

Last week, on June 25, 2019, TechnipFMC agreed to settle FCPA violations with the Justice Department for $296 million that occurred in Iraq and Brazil. TechnipFMC was created in 2017 through the merger of Technip, a French company, and FMC Technologies, a Houston-based company. The SEC’s investigation is still pending. The combined FCPA settlement was the result of separate FCPA violations by each of the...

Podcasts

30 Jun, 2019

Episode 96 — The End of the Line: The Walmart FCPA Settlement

After a lengthy investigation (yes, 8 years), Walmart agreed to settle its FCPA violations and paid approximately $282 million , divided as follows: (1) $138 combined criminal penalty under the terms of a three-year non-prosecution agreement; and (2) $144 million disgorgement pursuant to an agreement with the SEC. Walmart’s Brazil subsidiary entered a guilty plea to one count of violating books and records in the Eastern...

General

27 Jun, 2019

Applying OFAC’s Sanctions Enforcement Guidelines to Determine A Civil Monetary Penalty (Part II of II)

In yesterday’s posting, I examined the General Factors identified by OFAC to determine whether to initiate a civil penalty proceeding and the amount of any civil monetary penalty. After analyzing these factors, OFAC determines the base penalty using a formula that depends on whether (a) the company voluntarily disclosed the matter; and (b) whether the violations are “egregious” or “non-egregious.” 1. Egregious case. OFAC determines whether...

General

26 Jun, 2019

Understanding the OFAC Sanctions Enforcement Guidelines (Part I of II)

The Treasury Department’s Office of Foreign Asset Control is an enforcement agency – it is not a regulatory agency. That sounds like a lot of bureaucratic speak but it does have some real significance. OFAC staff view themselves and act like an enforcement agency. Yes, they regulate in the sense that they authorize general and specific licenses and provide guidance. OFAC guidance is sometimes provided...

General

25 Jun, 2019

Lessons Learned from the Walmart FCPA Enforcement Action (Part III of III)

This is a tough posting – frankly, there are so many lessons learned from the Walmart case that they could fill a book, or an e-book at least. I will focus on some of the big issues. Walmart should breathe a sigh of relief. The compliance cloud hanging over its heard for so long is now gone, except with one big caveat – Walmart has...

Events

25 Jun, 2019

Rescheduled Webinar: Achieving an Effective Compliance Program: DOJ and OFAC Guidance, Best Practices, and Industry Trends

Rescheduled Webinar: Achieving an Effective Compliance Program: DOJ and OFAC Guidance, Best Practices and Industry Trends July 10, 2019, 12 Noon EST Sign Up Here The compliance industry is evolving. Recent DOJ and OFAC Guidance are just one influence. At the same technology and innovative strategies using data analytics are quickly eclipsing government guidance, especially in the area of compliance program monitoring, testing and auditing....

General

24 Jun, 2019

Walmart’s Recipe for Corruption Disaster: Rapid International Growth without a Compliance Program Foundation (Part II of III)

The Walmart case, from a big picture standpoint, represents a serious warning to all global companies committed to rapid international growth. In the absence of a significant and sustained commitment to compliance, rapid international growth is bound to end up in a compliance breakdown, thereby threatening the ultimate success of any international business strategy. Walmart is Exhibit A in the explanation of how a successful...

General

23 Jun, 2019

Thank You, Thank You: DOJ and SEC Resolve Walmart FCPA Enforcement Action (Part I of III)

Our long national nightmare is over – President Gerald Ford, August 9, 1974 So, $900 million and roughly 8 years later, DOJ and the SEC announced the end of the Walmart FCPA enforcement action. (DOJ Here and SEC Here). The Walmart scandal, which was first reported in the New York Times, was a watershed moment in anti-corruption enforcement. It marked a real turning point in...

Podcasts

23 Jun, 2019

Episode 95 — Interview of Teresa Troester-Falk, Chief Global Privacy Strategist at Nymity, on the California Consumer Privacy Act

The California Consumer Privacy Act of 2018 (the “Act”) was signed into law by California Governor Jerry Brown on June 28, 2018, after being hastily introduced in the California Legislature just a few days prior. The Act is effective January 1, 2020. In this episode, Michael Volkov interviews Teresa Troester-Falk, Chief Global Privacy Strategist at Nymity, concerning the Act and the compliance implications for businesses. ...