Corporate governance is the most important predictor of compliance.  This may sound obvious but corporate boards move slowly.  In many cases, corporate boards move way too slowly.  Corporate failures usually rest on missteps and omissions by corporate leaders.  It is a rare case for a company to have a board that is forward-looking and in front of the curve. In the last ten years, there...

Join us for a Free Webinar:   Health Care Fraud Enforcement Trends and Compliance August 22, 2012, at 12 to 1 pm SIGN UP HERE Health care providers, insurance companies and pharmaceutical and medical device companies face unprecedented risks of civil and criminal enforcement. The Justice Department’s Health Care Fraud initiative, which primarily focuses on Medicare and Medicaid fraud and Off-Label marketing cases, is one of...

It would be interesting to study how companies respond to FCPA violations.  A study on when all the dust settles — after the company discloses FCPA violations, conducts an internal investigation, confirms improper payments, fires those employees responsible, settles with the government and pays a fine – would be particularly interesting. When all the dust settles, what changes, if any, occur at the corporate board...

The Justice Department always touts its FCPA, Criminal Antitrust and Health Care Fraud enforcement programs.  It is very proud of its record in these areas.  But quietly and methodically the Justice Department has ramped up, with little fanfare, its export control and sanctions enforcement program.  For the first half of this year, while attorneys, client alerts, and marketing pitches continue to focus on FCPA enforcement,...

I have had more than one corporate general counsel tell me that anti-corruption compliance is not very effective in protecting against foreign bribery.  Their argument is that a company’s compliance program boils down to the behavior of individual employees.  An employee will either decide to violate the law or comply with the law; the company’s compliance program has no influence on this decision.  According to...

The SEC is not a shrinking violet.  When it comes to FCPA enforcement, some focus more on the Justice Department – and given its criminal enforcement mission that is understandable.  But the SEC has a strong enforcement role to play, and in the last year or so, it has been flexing its enforcement muscle.  It is an important trend and one that is expected to...

A recent survey found that close to half of all responding companies had established or increased anti-corruption compliance.  That is a very positive response to increased FCPA enforcement.  It is time and money well spent.  Increased compliance reduces risk. Companies have to be realistic about the enforcement risks.  Most (if not all) major enforcement actions involve situations where there is a “systematic” breakdown in compliance. ...

One tricky issue at the beginning of every internal investigation is determining whether the government is investigating the same issue. If the government is conducting its own investigation, tricky issues can come up about informing employees that government investigators may contact them. As part of its war on white collar criminals, the government is employing tactics typically reserved for narcotics trafficking organizations and organized crime....

The debate surrounding FCPA enforcement and a compliance defense should be expanded to focus on the real issue at play – corporate criminal liability under the doctrine of respondeat superior.  The Chamber of Commerce has focused on the FCPA reform issue and has failed to gain much traction, especially in light of recent publicly-disclosed FCPA investigations. Several years ago the Chamber pursued changes in corporate...

The FCPA paparazzi like to wring its hands over anti-corruption compliance in China.  Some of the wringing makes sense; some does not. No company should avoid entering or expanding into China because of corruption risks.  Any company which decides not to enter China for that reason has a limited perspective.  China is a corruption compliance challenge.  You must enter China with a full plate of...