A few things in the FCPA enforcement arena for 2011 are clear – the Justice Department and the SEC are not going to come close to repeat their 2010 stats –$1.6 billion in fines and penalties.  DOJ prosecutors have been tied up in trials and unable to move ongoing investigations as fast as usual.  As a result, DOJ prosecutors are not able to follow up on outside counsel and internal investigations.   But...

Graft in India is nothing new.  Corruption infects every level of government – from routine ministerial tasks like obtaining a driver’s license to more complex business projects – India has spawned a political movement to clean up government.  Small businesses have to pay off police and local constables, health, safety and hygiene inspectors.  Parents have to pay school headmasters to make sure thie children are...

Transparency International released its Bribe Payer’s Index Report for 2011.  Companies need to incorporate this information into their risk assessment.  Most companies rely  on the annual Corruptions Perception Index, which ranks all 178 countries. Some of the CPI rankings are questionable – most notably, China is ranked 78 out of 178.  That ranking is problematic.  Anyone who has had to focus on compliance in China...

It was inevitable.  The Justice Department announced it would issue guidance on the FCPA.  Lanny Breuer’s announcement reflected the political realities and one other important factor – it is the right thing to do.  As I said on numerous occasions, the pattern is similar to DOJ’s handling of the attorney-client privilege waiver/McNulty memo.  In order to avoid legislation and to quiet critics, they announce changes in...

The model for corporate governance is changing.  Boards are now demonstrating concern for ethical behavior in business strategy, operations and culture.  With the new global economy, the board and all the stakeholders are beginning to recognize that  environmental, social, and governance are critical to the corporation’s reputation and ultimately, profits.  These new concerns are front and center before the board.  Directors need to provide well-informed...

The SEC trumpets its FCPA enforcement program.  It wants to send a message to the business community.  Make no mistake – businesses have heard the message. But what is the SEC doing when it comes to bread and butter issues like accounting fraud.  In the early 2000s, the SEC aggressively prosecuted accounting fraud schemes committed by companies such as WorldCom and Enron.  Politicians were forced  to respond to...

It is troubling to see how many lawyers are unable to question a witness.  It is an acquired skill which reflects a lawyer’s experience and interpersonal skills.  Lawyers are not sensitive souls.  They have a hard time reading people because they are not so comfortable with themselves (some may say that is why they entered the practice of law).  That does not apply to every lawyer.  There...

“Or you got it or you ain’t” — Mel Brooks on Curb Your Enthusiasm, Season 4, Episode 1 Everyone is scrambling to put together effective anti-corruption compliance programs.  The interesting compliance situations are those involving mid-size and small companies, especially those which are privately owned.  They are not subject to SEC regulation but nonetheless can face prosecution for bribery violations. If a company is starting...

As a former federal prosecutor in the District of Columbia, it is interesting to watch the Operation Fast and Furious controversy unfold on Capitol Hill.  Congressional oversight rarely means a search for the truth – it is usually motivated to score political points.  When it comes to Operation Fast and Furious, there is a little bit of both – fact-finding and political point making. On...

Imagination is more important than knowledge – Albert Einstein  For companies trying to comply with the law, it is difficult to find quality attorneys to help.  Forgive me for criticizing my profession but many of my colleagues take refuge in mechanical, non-creative thinking.  To be a good lawyer and a value add for a company, we should try and be creative and solve problems.  You...