Lawyers like to complicate issues and then solve them. It is how we stay in business. Lawyers have developed terms which are difficult to define (e.g. reasonable) and then sell themselves as the experts in applying these terms. Compliance issues are not as complex as people like to think. Solutions usually can be developed by applying common sense. Compliance officers and internal auditors are proficient...
Federal civil and criminal enforcement against companies is at an unprecedented level. I have repeated this over and over. In the face of this aggressive enforcement environment, it is time for corporate boards to step up to the plate. As each new scandal is reported, the question always comes up – where was the board? Why didn’t they intervene and fix the problem? Directors need...
Many of the Fortune 100 companies tout their compliance programs. They are proud of their gold-plated, compliance programs and their record of success. But the world changed recently – especially for the Fortune 100 companies — with the events in Mexico and the New York Times report. Fortune 100 companies are not immune to compliance breakdowns. Recent events have underscored this point – no matter...
You have to give the Justice Department credit – they are crafty and can be very politically astute. The Justice Department played a very subtle political game with the Morgan Stanley settlement. You have to give them credit for how they used the case to make a point. The Justice Department wanted to show everyone that they can be reasonable, credit a corporate compliance program,...
The Marx Brothers have always been my favorite. Even today, their movies stand out as the best. One of Groucho’s best lines is particularly apt to FCPA reform. In A Day at the Races (1937), Groucho passed himself off as Dr. Hackenbush, a doctor rather than a horse doctor, and quipped while taking Harpo’s pulse — “Either he’s dead or my watch has stopped.” The same can be...
Corruption Crime & Compliance welcomes Patrick Kellermann from LeClairRyan who authored this post. Patrick’s biography is located here. For the past decade, money has poured into green businesses and its support industries. But remember, DOJ and SEC enforcement follows the money. This brings to mind the age-old adage, summarized well by Christopher Wallace: more money, more problems. It should come as no surprise that environmental...
It is surprising how little attention is paid to the issue of monitoring an anti-corruption compliance program. I guess implementing a compliance program is like finishing a painting – you stand back and marvel at your accomplishment. In reality, compliance is always a continuous process. Once you think you are finished, it is time to start all over again. Your starting point for all compliance...
If You Can’t Stand the Heat, Get Out of the Kyxhя (Russian for “kitchen”) When discussing business opportunities in Russia, the prevailing message seems to be, if you can’t stand the heat, get out of the kitchen. This take it or leave it attitude was certainly true in the past but recent events suggest that maybe, just maybe, the tables are turning. Armed with an...
The SEC’s whistleblower program is under heat from Congress over an allegation that it allegedly disclosed the identity of an SEC whistleblower. The allegations are making political headway on Capitol Hill but that may be all that happens – a closer look at the claim shows that it has little merit. But the recent flap over the SEC Whistleblower program is an important reminder that...
FCPA practitioners like to focus their attention on “sexy” compliance issues. Internal controls are rarely discussed. It can be a mind-numbing topic. When it comes down to it, internal financial controls are the most important protection against bribes (and fraud). A company with effective internal controls is taking an important step in deterring illegal payments. Two key components of internal controls are: (1) travel and...
