I respect prosecutors, most of them at least. I had the fortunate opportunity to work with a number of terrific prosecutors. Most are intelligent, hard working and committed to doing the right thing. I recognize that there are times when a prosecutor crosses the line, and for those prosecutors, I have no sympathy. Whatever punishment they receive is usually well deserved. But a very high...

The SEC, last week, announced its $5 million settlement with Key Energy. As always, FCPA settlements contain important examples of enforcement priorities and policies. Key Energy’s recent settlement is an example of the benefits of cooperation, especially when a company, like Key Energy, did not initiate the investigation by disclosing the matter to the government. Key Energy agreed to a books and records and internal...

Building on early successes, the Financial Crimes Enforcement Network (“FinCEN”) announced new rules targeting buyers of high-end real estate properties.  (Here). Earlier this year, FinCEN adopted rules focusing on high-end buyers of real estate in Miami and New York City. The new rules required title companies to report the beneficial owners of limited liability companies and shell companies which use cash to purchase high-end real...

Forgive me for overusing the term “convergence” but when the shoe fits, I say “wear it.”   If you are managing corporate risks and are responsible for securing export licenses, ensuring that you are complying with OFAC sanctions requirements, interacting with customs and immigration officials around the globe, and conducting third party due diligence to onboard a new agent or distributor, there is no question that...

I was honored to participate in a webinar sponsored by Workplace Answers with its President, Farzad Barkhordari.  A copy of the recording its available here in case you want to listen to it. Farzad and I covered a range of topics: Why training is important; Current trends and benchmarks in training Best practices in training Thanks for your support!!

Charitable organizations can easily become enmeshed in Justice Department enforcement issues. We have seen charities used in FCPA cases as a means to funnel bribes to government officials, spouses or family members. In the domestic world of drugs and anti-kickback laws, drug company relationships with patient foundations are now being examined for possible violation of anti-kickback laws. Government scrutiny of drug prices is occurring on...

Companies face an ever-changing constellation of risks, enforcement priorities and demands for internal controls and compliance program elements. As more resources are poured into government enforcement programs, companies have to “reinvent” compliance programs to incorporate new priorities and demands. Many companies have established complaint systems and internal investigation programs to conduct routine and serious investigation. In most cases, these systems do not adequately address whistleblower...

Mexico has amended its laws and administrative procedures to implement a new and aggressive administrative anti-corruption regime. Mexico’s efforts have won praise from the OECD and other anti-corruption interest groups. The law extends new anti-corruption prohibitions beyond the federal level but to Mexican states and local governments. In the face of continuing controversies surrounding corruption in Mexico, President Pena Nieto, who ran a campaign in...

In an important decision, on July 6, 2016, the Eighth Circuit Court of Appeals affirmed the prison sentences imposed on Jack DeCoster, and his son, Peter, under the “responsible corporate officer” doctrine (aka Park doctrine) for their role in distributing eggs tainted by salmonella. (Here). In 2010, approximately 56,000 persons fell ill from salmonella after eating contaminated eggs. The outbreak was eventually traced back to...

The term “due diligence” is an overused expression in the compliance world. It has become a term to mean heightened concern or investigation. No one can really define what it means except to say it has different meanings in different contexts. Some would say it is a term of art in the legal and compliance world. It is misleading to add the term “investigation” to...