Companies with existing compliance programs are starting to focus on the importance of monitoring, auditing and improving their compliance programs. The Sentencing Guidelines and the FCPA Guidance both emphasize the importance of transforming a compliance program from a “paper” program to an “evolving” compliance program. A paper program is defined as policies and procedures with little assurance that the company is following the program, and...
Just to show my age and my fascination with history – the recent flap over the IRS targeting of Tea Party-affiliated groups reminds everyone in my age bracket (and above) of the legendary Nixon(ian) scandals during the Watergate era. Since I have practiced law in DC all my life, I can be a little cynical. The current IRS scandal is horrible – and certainly, the...
Prosecutors are a fun bunch and they love their jobs and their mission – to prosecute law-breakers for violating the law. Prosecutors especially enjoy when they are charged with increasing enforcement of a specific law and watching the reaction of the industry to their prosecutorial impact. HIPAA enforcement is a perfect example of this principle. HIPAA has been on the books for nearly 20 years,...
The FCPA Paparazzi has been at it again – it is fascinating to watch the reaction of practitioners and commentators in the FCPA arena. You can usually find someone who will agree with any position you want to take. Paparazzi members are usually all over the map, trying to differentiate their position, their take on the issue, so as to carve out a unique and...
Hopefully, you and your company will never have to prove to a court or argue to the Justice Department that your anti-corruption compliance program is “effective.” Even if you never face that audience, a Chief Compliance Officer (CCO) needs to measure the effectiveness of the compliance program. It is important to develop realistic and meaningful metrics for a compliance program. Demonstrating that a compliance program...
People love to give advice – they love to tell people what to do (and hear themselves talk). In order to be effective, compliance professionals have to be able to “listen.” That means more than just being polite and paying attention when people speak. The ability to “listen” means a willingness to consider new ideas, alternative strategies and approaches to compliance issues. We all know...
The Consumer Finance Protection Bureau continues to spread its wings in the enforcement arena. It is an agency born and confined in political controversy. The Director of the CFPB’s recess appointment and legal status is up in the air and on appeal before the courts. Republicans on Capitol Hill continue to conduct oversight and pressure the CFPB on its regulatory authority and actions. Despite all...
Let’s try and put this all in perspective. Last fiscal year, the Antitrust Division collected over $1 billion in criminal fines and sent a number of senior executives to prison. The Antitrust Division’s enforcement record is impressive and is likely to grow with the LIBOR investigation and the ever-expanding investigation of auto parts suppliers. Based on this clear enforcement risk, you would expect that antitrust...
Chief Compliance Officers are basically optimists. In the face of a mountain of worst case scenarios (typically referred to as “risks”), CCOs keep smiling and work incredibly hard. They are “religious” zealots in business clothing. CCOs indoctrinate their staff to fight the same cause and they spread the word on the importance of ethics and compliance. The perception of CCOs is far different. Management and...
In the age of superstar CEOs who command media attention and excessive compensation packages, a company’s performance can often boil down to the relationship between the Board and the CEO. Corporate governance can succeed or fail based on the CEO’s performance. Numerous studies have focused on the personality types of CEOs. In a recent article, a British study found that CEOs are four times as...
