Corruption, Crime & Compliance

Featured Articles:

20 Sep, 2024

Deere’s Bribery Schemes — Circumventing Expense Controls (Part II of II)

The Deere case is an important reminder for companies to devote proper attention to ensuring robust integration planning for acquired companies. DOJ has provided important guidance on acquisition practices and the need to integrate acquired companies into the acquiring company’s ethics and compliance program and internal controls. Deere made little effort to integrate Wirtgen into its ethics and compliance program and control environment. As a...

General

19 Sep, 2024

The Deere SEC FCPA Settlement: A Textbook Case of Expense Abuse (Part I of II)

The SEC’s recent settlement with Deere & Company for $9.9 million for FCPA violations is another textbook example of bribery schemes, which revealed the absence of a culture of compliance, and the circumvention of basic entertainment, hospitality and travel expense controls. Deere’s bribery scheme involved its Thailand subsidiary, Wirtgen Thailand, and various improper payments to government officials, including cash, sham consulting fees, extravagant “factory visit”...

General

18 Sep, 2024

Oak Street Health Pays $60 Million to Resolve False Claims Act Violations

Federal whistleblowers have been exposing health care fraud for years. The False Claims Act (“FCA”) contains robust whistleblower provisions and protections that reward whistleblowers with financial payouts. The process for whistleblower submissions is well-established, and the Justice Department has a robust investigative function to sift through the whistleblower complaints. If the Justice Department decides to intervene in support of the whistleblower’s claim, nearly 100 percent...

Supply Chain “Audits” and Risk Mitigation

General

17 Sep, 2024

Supply Chain “Audits” and Risk Mitigation

We have seen an explosion in the attention paid to legal, compliance and operational risks companies face in supply chain operations. Depending on the industry, companies have to address a wide-swath of supply chain risks, identify those issues that need to be mitigated and promote transparency and management of supply chain functions. Legal and compliance risks have increased with heightened focus on due diligence, export...

Episode 336 — Review of Recent DOJ Declinations

Podcasts

15 Sep, 2024

Episode 336 — Review of Recent DOJ Declinations

The Justice Department is encouraging companies to voluntarily disclose criminal violations — “Come in and confess” and DOJ offers promises of a declination. But even a declination comes with a requirement: the company has to pay disgorgement In the latest declination case, Boston Consulting Group (“BCG”) earned a declination for FCPA violations stemming from conduct in Angola. BCG, a management consulting firm, earned the declination...

John Deere Reaches $9.9 Million Settlement with SEC over FCPA Violations

General

11 Sep, 2024

John Deere Reaches $9.9 Million Settlement with SEC over FCPA Violations

The U.S. Securities and Exchange Commission (“SEC”) recently instituted proceedings against Deere & Company (“John Deere”), a leading global manufacturer of agricultural and heavy machinery, for multiple violations of the Foreign Corrupt Practices Act (“FCPA”). These violations arose from improper activities undertaken by its wholly owned subsidiary, Wirtgen Thailand. The underlying misconduct—which occurred between late 2017 and 2020—included the provision of illicit payments and other...

The Board’s Perspective: Wrapping Your Arms Around Risks

General

9 Sep, 2024

The Board’s Perspective: Wrapping Your Arms Around Risks

This week I attended the Diligent Elevate annual meeting in Houston, Texas. For those of you who don’t know Diligent, it is a great event, and you can meet risk and compliance professionals, board members, and lawyers. Diligent conducted numerous board education sessions at which board members spoke about new and significant risks; these included increased stakeholder expectations and the burdensome review of education and...

The Importance of Compliance Independence

General

9 Sep, 2024

The Importance of Compliance Independence

I did not expect to return to this issue. This was an “old” issue that was resolved many moons ago. The issue was a professional debate over the reporting relationship between the chief compliance officer (CCO) and the chief legal officer (CLO)/general counsel. After 20 years of debate, CCOs managed to sway the professional community: CCOs have to operate independently, without improper interference by the...

Episode 335 — Review of the DOJ Whistleblower Program

Podcasts

8 Sep, 2024

Episode 335 — Review of the DOJ Whistleblower Program

On August 1, 2024, DOJ issued its Whistleblower Policy Pilot Program (“WRPP”). The new program amends its Corporate Enforcement Policy. DOJ also issued a Program Guidance document, a Fact Sheet, Frequently Asked Questions and a dedicated website. The WRPP will run for three years. The Money Laundering and Asset Recovery Section (“MLARS”) is administering the WRPP. The WRPP will reward individuals who provide “original information”...

General

5 Sep, 2024

RTX Corporation Reaches Record $200 Million Settlement with DDTC for Serial Violations of the AECA and ITAR

On August 30, 2024, the U.S. Department of State’s Directorate of Defense Trade Controls (“DDTC”) announced the settlement of a record $200 million administrative enforcement action with RTX Corporation—a multinational aerospace and defense conglomerate—for 750 separate violations of the Arms Export Control Act (“AECA”) and accompanying International Traffic in Arms Regulations (“ITAR”). As described in the context of a charging letter released by DDTC, RTX Corporation...