Companies which have adopted anti-corruption compliance programs for the first time face a significant set of challenges relating to past conduct.  The questions can be very tricky – Do you investigate past conduct for potential improper payments?  Should existing third parties be subject to due diligence review or should such a review wait for renewals of existing arrangements? The statute of limitations for FCPA criminal...

Whenever I read about the latest enforcement action – whether it is FCPA, export controls and sanctions, health care fraud, off-label marketing, or False Claims Act – my first question is always what role, if any, did the board of directors’ play in the compliance failure? The buck starts and stops with the board of directors.  Compliance meltdowns do not occur unless the board is...

It is important to weigh enforcement risks with perspective.  The Justice Department’s biggest FCPA enforcement year was approximately $1.4 billion in 2010.  The Justice Department doubled that amount in the off-label marketing prosecution of GlaxoSmithKline (GSK) which totaled $3 billion in one case, which consisted of a $1 billion criminal fine and $2 billion in civil penalties.  GSK paid these penalties for off-label promotion of...

The system of national banks and federal thrifts is returning to good condition, not perfect, but good.  Balance sheets are stronger, assets are more stable, and earnings are definitely on the rise, particularly in comparison to the depths of the financial crisis in 2009.  Bank lending is rising slowly and should improve.   While the general state of the industry has improved, the financial industry faces...

Please join me and Tom Fox for a complimentary breakfast seminar on September 25, 2012 in San Diego, California.  The seminar is being sponsored by Kreller Group. Anti-Corruption Due Diligence Workshop: Practical Steps to Protect Your Company from Third Party and Joint Venture Risks.   When: September 25, 2012, 8 AM to 10 AM Where: San Diego Marriott, Del Mar, California Register HERE Conducting proper Due...

With the Second Circuit’s recent reversal of the insider trading convictions in the Squawk Box case, United States v. Mahaffey, et al, (copy here), the trade press is ringing once again with claims of continuing prosecutorial abuse.  Judging by press reports on this case and others, including the Senator Stevens case, the instances of prosecutorial misconduct appear to be on the rise.  The white collar...

I am happy to announce my pariticpation at several upcoming seminars sponsored by World Compliance. The next stop on the tour is Friday, August 17, 2012, in Bogota, Colombia.  Here is a link to the event.  I hope you can make it. After Bogota, we are scheduled to participate on Wednesday, September 5, 2012, in Mexico City, Mexico.  You can register for the event here.  I...

I would like to welcome three new sponsors to Corruption Crime & Compliance.  Each has unique capabilities in the compliance industry. Berkeley Research Group is one of the fastest growing and dynamic new consulting firms which provides forensic accounting, forensic investigation, strategic advisory and corporate intelligence services.  BRG announced yesterday the addition of former SEC Inspector General David Kotz to its anti-corruption team.  Please check out...

“Never argue with stupid people, they will drag you down to their level and then beat you with experience.” – Mark Twain Mark Twain’s quotes are timeless – his keen observations apply today just as they did years ago.  A compliance program depends on rational decisions.  Stupid decisions will undermine compliance. The key to compliance is identifying and analyzing issues, weighing risks, and making rational...

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...