I have to confess that there is a part of me that was skeptical about a new survey released last week finding that banks and other financial institutions have not embraced a culture of integrity. (Survey Here). Indeed, the survey found that numerous individuals continue to operate with the idea that illegal or unethical behavior is a necessary part of succeeding in the financial markets....
There is no question that the compliance profession is on the rise. My colleague, Donna Boehme and I, frequently advocate on behalf of the compliance profession. See here for our latest – 4 Steps Every Board of Directors Should Take Toward Compliance. With the rise of the CCO in corporate governance circles, there are adjustments that have to be made in other areas. What do...
Donna Boehme (profile here) and I recently wrote an article — 4 Steps Corporate Directors Need to Take Toward Compliance 2.0 – which is available here. I have written about the need for corporate boards to embrace a “new reality,” reflecting the increased risks and the importance of ethics and compliance. Corporate boards can no longer rely on prior legal models to satisfy governance standards;...
Some things are hard to define and measure in compliance. Culture is the prime example often cited by commentators. I do not share that opinion. Whether it is quantified or not, there is one unmistakable truth – you know when you have a positive culture and you know (but often try to ignore) when your company has a poor culture. When I work with companies...
You can always count on lawyers to ring alarm belles and warn businesses. The line between accurate reporting and fear-mongering sometimes blurs when lawyers write so-called “alerts” to inform businesses of new or increasing risks. When it comes to the False Claims Act, I always try to “stick to the facts.” For healthcare, pharmaceutical/medical device, and defense companies, the False Claims Act is usually the...
The SEC is on a mission – companies that engage in egregious payment schemes for gifts, hospitality and travel are going to get prosecuted for civil FCPA violations. Recent SEC enforcement actions against companies continue, and BHP Billiton’s settlement last week is another example of the SEC’s prosecution strategy. BHP Billiton agreed to pay a $25 million penalty to settle SEC charges for internal controls...
Webinar June 9, 2015 12 Noon EST Sign Up Here Hospitals and other healthcare providers face extraordinary risks in the marketplace. The Justice Department has ramped up False Claims Act cases, and now has promised to increase criminal prosecutions for healthcare fraud. The implications of this new initiative are significant, and require all healthcare organizations to reexamine and enhance their ethics and compliance programs. Join...
The government is on a public relation campaign. Department of Justice and SEC officials have been making the rounds and giving important speeches on criminal prosecutions, cooperation and voluntary disclosure and ethics and compliance program expectations. In a recent speech (here), Criminal Division AAG Leslie Caldwell outlined a number of important issues relating to DOJ expectations of company ethics and compliance programs. DOJ has promoted...
You can add this blog posting to my tagged category – “profound grasps of the obvious.” If you are brave and willing to succumb to yet another in this series, please read on. Much has been written about how to conduct an internal investigation. Not as much has been written about the steps leading to an internal investigation. There can be very difficult judgment calls...
DOJ has developed a new and innovative model for criminal prosecution of corporations. The jury is still out on whether this model is the best use of public resources. DOJ frequently touts its successes based on criminal fines collected, numbers of companies investigated, and improvements in the governance of corporations. DOJ is proud of its program, and rightfully so. DOJ has set in a motion...
