As global enforcement becomes a reality, companies face a unique set of risks which can be mind-numbing in complications.  With the long-arm reach of the FCPA, UK Bribery Act and other anti-corruption laws, more enforcement actions are focusing on extraterritorial conduct.  Even more complicating is the fact that such conduct is falling under the jurisdiction of multiple companies. This is not something new.  Global antitrust...

The controversy around punishment and deterrence of corporate misconduct continues to swirl.  As fines increase against companies, it is important to ask the question whether the current enforcement scheme adequately punishes and deters corporations. The issue was underscored by recent comments made by JP Morgan’s General Counsel three days after JP Morgan reached a record $13 billion settlement for its mortgage-backed securities activities, who suggested...

When it comes to health insurance fraud, Carl Sagan’s obsession with the words – billions and billions — are particularly accurate. As the government’s role in health care increases, it is inevitable that fraud against the government will increase as well.  The False Claims Act is the primary weapon the government uses to chase fraudsters.  While the government has aggressively ramped up its anti-fraud fight,...

One of the many challenges in the compliance profession centers on coordination and integration.  There are plenty of compliance experts who can describe a perfect world – how to design a specific program and procedures to implement the program.  Vendors are ready to line up at a chief compliance officer’s door and sell them products which will carry out a specific program. The challenge for...

Companies need to recognize the importance of responding effectively to a whistleblower complaint.  The Enron case, and many others after that, started with a whistleblower complaint which the company either ignored or bungled in its response. I have repeatedly advised companies to develop a whistleblower triage strategy for assessing, responding to, and dealing with whistleblowers.  There are a number of ways to set up a...

Webinar — Third-Party Due Diligence: When is Enough, Enough? December 17, 2013 12 Noon – 1 PM EST Register: Here In this era of aggressive FCPA enforcement, companies are designing and implementing robust due diligence systems to screen and monitor third party representatives. These policies and procedures are critical for an effective anti-corruption compliance program. Due diligence, however, does not mean scientific certainty. In the...

There are so many potential pitfalls in conducting an internal investigation.  I always say that there is an “art” to conducting an effective internal investigation.  There are so many ways in which an investigator can be derailed, waste resources, and/or lose focus while conducting an investigation.  One of the most common ways in which a company can derail an internal investigation is by failing to...

Everyone knows that a compliance officer does not need to be a lawyer.  Some compliance professionals believe that lawyers do not make very good compliance officers – the jury is out on that.  To me, what matters more is the personal attributes that a person brings to a job – are they positive, persistent, goal-directed, self-effacing, and able to communicate and work together with people....

Just when you thought something was a “trend,” the Department of Justice adopts a new policy approach.  This year has been a very active enforcement year – the strongest year of FCPA enforcement since 2010. Starting with the Total settlement earlier this year, and continuing with the Diebold and Weatherford settlements, the Department of Justice has required companies to retain an independent monitor. The Department...

The government recognizes the importance of compliance and Chief Compliance Officers.  In a number of recent speeches, the leadership of the Justice Department and the SEC have made important statements supporting corporate compliance programs and the role of chief compliance officers. SEC Commissioner Mary Jo White praised CCOs and the important role that they play in ensuring compliance in an organization (here).  Deputy Attorney General...