Corruption, Crime & Compliance

Featured Articles:

1 Dec, 2021

Emerging Developments in U.S.-China Trade Relations (Part I of II)

Alex Cotoia, Regulatory Manager and Compliance Consultant at The Volkov Law Group, rejoins us for a two-part posting on emerging developments in U.S.-China trade issues. Alex can be contacted at [email protected]. As diplomatic tensions between Washington and Beijing continue to escalate, U.S. owned businesses dependent on the sale and export of more sensitive advanced technologies to the People’s Republic of China (“PRC”) should take heed...

General

30 Nov, 2021

Boeing Settles Shareholder Litigation and Agrees to Reforms (Part IV of IV)

The crushing aftermath of the tragic 737 MAX scandal is disturbing at the least. Innocent lives were lost because of Boeing’s culture misfires, poor leadership at the management and board level, and an arrogant disregard for the impact of safety concerns. Boeing’s 737 MAX fleet was grounded for twenty months, until November 18, 2020. Boeing was ordered by the FAA to cure the defects in...

Podcasts

28 Nov, 2021

Episode 216 — Tom Fox Releases the Second Edition of The Compliance Handbook

Tom Fox is a leader in the ethics and compliance field. He is regularly referred to as the “Compliance Evangelist.” Tom has just released the Second Edition of The Compliance Handbook, a comprehensive review and guide to the elements of an effective ethics and compliance program. Tom is known for his practical and efficient approach to difficult ethics and compliance issues. His new Handbook is...

General

26 Nov, 2021

Boeing’s Board Governance Failures and the 737 MAX Safety Scandal (Part III of IV)

In its decision, the Chancery Court methodically analyzed the weaknesses in Boeing’s board processes and its fundamental failure to meet basic Caremark standards in tackling airplane safety issues, particularly after the Lion Air crash in 2018. First, the Board did not implement or prioritize safety oversight at the “highest level of the corporate pyramid.” None of Boeing’s Board committees were specifically assigned responsibility for overseeing...

General

24 Nov, 2021

The Delaware Court’s Decision Highlights Boeing’s Defective Corporate Culture and Board Governance Failures (Part II of IV)

When considered in light of the Chancery Court’s decision, DOJ’s essential findings in its Boeing investigation are problematic at best. The Chancery Court’s decision outlines how Boeing’s culture of safety deteriorated into a culture of cost-cutting and profits, while under supervision of a board with star-studded credentials. The Delaware Court’s decision provides a perfect example of how weak corporate governance can have a direct and...

General

23 Nov, 2021

A Tale of Two Boeing Boards — The Disparate Conclusions of the Justice Department and the Delaware Chancery Court (Part I of IV)

“Reality is merely an illusion, albeit a very persistent one.”― Albert Einstein “Reality leaves a lot to the imagination.”― John Lennon We often hear about how perspective can influence conclusions. It is rare, however, when it comes to investigations, legal proceedings, and litigation for two separate but important fact finders to reach polar opposite conclusions. When I reviewed again the US Department of Justice’s conclusions reached as...

General

23 Nov, 2021

Dubai Bank Pays $100 Million to Resolve Sanctions Violations with DFS, OFAC and Federal Reserve

Mashreqbank, based in Dubai, agreed to pay $100 million to the New York Department of Financial Services, the Federal Reserve, and the Office of Foreign Asset Control for violation of the now-repealed Sudan Sanctions Regulations. The Sudan Sanctions Regulations were repealed on June 29, 2018. OFAC issued only a Finding of Violation, rather than impose a civil penalty, in light of Mashreqbank’s willingness to agree...

Podcasts

21 Nov, 2021

Episode 215 — Tom Fox and Michael Volkov Discuss the Board Governance Implications of the Boeing 737 MAX Safety Scandal

The Boeing 737 MAX scandal is a troublesome and disturbing case where corporate board oversight and responsibility was lacking. The implications of the board’s failure resulted in the killing of innocent passengers and the grounding of Boeing’s 737 MAX. Add to that a $2.5 billion settlement, a criminal case against a Chief Technical Pilot, and continuing safety and technical problems, and you have recipe for continuing disaster...

General

18 Nov, 2021

DOJ Battles Ransomware Attacks

The Justice Department continues to attack and dismantle global ransomware extortion organizations. Business surveys often confirm that executives are hyper-focused on the risk of ransomware attacks against businesses. Interestingly, government regulators have focused on ransomware scenarios to ensure that regulatory restrictions on sanctions and other restrictions are not violated. The message behind DOJ and regulatory interests is clear – if attacked, notify law enforcement right...