Several years ago, the SEC sent shockwaves through the private equity and hedge fund industries.  The SEC launched an industry investigation focused on the legal principle that foreign sovereign wealth funds were a part of foreign governments and led by foreign officials under the FCPA.  The implications of such an interpretation meant that private equity companies and hedge funds had to exercise caution in their...

William James used to preach the “will to believe”. For my part, I should wish to preach the “will to doubt”…. What is wanted is not the will to believe, but the will to find out, which is the exact opposite. – Bertrand Russell Skeptical Essays, 1928  “Man’s greatest asset is the unsettled mind.” – Isaac Asimov In the coming years, the pressure on corporate...

The Justice Department and the SEC have been busy.  More enforcement actions are coming to a close — Avon, Weatherford, and others are likely to be resolved before the end of the year.  There is an inevitable fourth quarter push to close out enforcement actions and clear the plate. It is always interesting to see how the FCPA Paparazzi translates FCPA enforcement actions in its...

Compliance is becoming more and more specialized.  Whatever is the soup du jour, or current high-risk operation, becomes the focus of compliance education, marketing, and surveys.  After the passage of the PATRIOT Act in 2001, the focus was anti-money laundering compliance programs.  In the last few years, the focus has now turned to anti-corruption compliance. Compliance officers usually get dragged into this trend and focus...

It is important to understand one’s limitations in life.  In the world of compliance, CCOs need to be realistic when they start a new job with a new company.  It also means that a CCO has to be honest with himself or herself. Every person knows deep down their strengths and weaknesses.  CCOs know this as well.  Some CCOs (and people) have a “can do”...

Companies are always trying to do more with less.  Senior executives will spend hours designing policies and programs to stretch dollars, resources and reduce costs. Committees are established for such research projects, consultants are brought in and solutions are reviewed and eventually implemented. Senior managers could reduce the time, the expense and angst involved in this process by just applying common sense.  Companies waste inordinate...

I am pleased to announce the launch of the new Volkov Law Group website (Here), Facebook Page (Here), Linked In Profile (Here) and You Tube Channel (Here). My practice has grown from largely a solo practice to a boutique practice, and currently includes three talented associates.  Our firm focuses on compliance, enforcement defense and internal investigations.     We have created a platform which will assist our...

My colleague Tom Fox is a fountain of wisdom on ethics and compliance issues.  If you know Tom and hear him speak, you know he has seen a lot of corporate compliance situations – good and bad.  With this perspective, it is always worth it to listen to Tom and heed his advice. Tom and I share a common perspective (or so I would like...

On September 26, 2013, the Federal Acquisition Regulatory (FAR) Council published proposed rules to implement new human trafficking compliance requirements on government contractors and subcontractors.  President Obama signed an Executive Order almost a year ago to eliminate human trafficking by government contractors and subcontractors.  Similar requirements were imposed on Defense Department contractors several months later when Congress enacted, and the President signed, the Defense Reauthorization...

The recent announcement of SEC whistleblower awards is an important reminder on the need for companies to devote time and attention to proactive whistleblower policies and practices.  Every organization adopts the vanilla-language of responding to whistleblowers and prohibiting retaliation against whistleblowers. It takes guts for companies to move beyond these standard pronouncements and embrace proactive strategies for dealing with whistleblowers.  Interestingly, recent studies continue to...