Corruption, Crime & Compliance

Featured Articles:

3 May, 2022

Global Logistics Company Settles OFAC Violations for $6.1 Million

You have to wonder how OFAC has the time to investigate and settle cases given its significant work implementing the Russia Sanctions Program. But OFAC continues to demonstrate its commitment to aggressive enforcement. OFAC’s latest enforcement action focused on Toll Holdings Limited, a global logistics company that engaged in U.S. dollar transactions with prohibited entities. Toll voluntarily disclosed the violations to OFAC but Toll was...

Podcasts

2 May, 2022

Episode 233 — Tom Fox and Mike Volkov Discuss DOJ Criminal Trial Wins, Losses and Stumbles

Federal prosecutors know that their job – to represent the United States – is the highlight of their legal career. Speaking from experience, federal prosecutors are a privileged lot – they can announce in court they represent the United States. It is a heady experience and an absolute privilege. It is hard not to repeat the Spiderman quote, “With great power comes great responsibility” – but...

General

28 Apr, 2022

Newmont Corporation and Chisu International Settle with OFAC to Resolve Violations of Cuban Sanctions Program

Even while the Treasury Department’s Office of Foreign Asset Control (“OFAC”) has been properly focused on implementing and enforcing the Russia sanctions scheme in response to Russia’s unprovoked invasion of Ukraine, OFAC had time to issue two enforcement actions involving violations of the Cuba Sanctions Program. The two separate cases stem from four transactions involving Newmont Corporation, a global mining company, and Chisu International Corporation...

General

26 Apr, 2022

Stericycle DOJ and SEC FCPA Settlement: Lessons Learned (Part III of III)

The Stericycle FCPA case is yet another example of a complete culture and compliance breakdown. As I often repeat myself, there is no more important control than an ethical culture. When a culture veers into the unethical and even criminal conduct, there is nothing to stop that train of illegality from continuing. When you review the facts of Stericycle’s conduct in Brazil, Mexico and Argentina,...

General

26 Apr, 2022

Stericycle’s Misconduct: Pervasive and Systemic Bribery Schemes (Part II of III)

We always learn important compliance lessons from digging into foreign bribery schemes. The Stericycle bribery misconduct is instructive because of its pervasive operations with the participation of numerous executives and employees, and third party vendors. In the end, we always come down to a basic truth – a fish rots from the head, and in this case, it is clear that Stericycle’s Latin American division’s...

General

25 Apr, 2022

DOJ Brings First Corporate FCPA Enforcement Action – Settles with Stericycle for $84 Million (Part I of III)

The Justice Department ended its FCPA enforcement drought by announcing its first corporate settlement in 2022. In a parallel action, the SEC announced its settlement with Stericycle for $28 million for FCPA violations. The SEC’s settlement was its second with a company for 2022 (the first was KT Corp.). Under the settlement, Stericycle resolved investigations being conducted by the Department of Justice, the Securities and...

Podcasts

24 Apr, 2022

Episode 232 — OFAC Settles with S&P Global for $78,750 for Violations of Ukraine-Russia Sanctions

OFAC recently announced a settlement with S&P Global for $78,750 for violations of the Ukraine-Russia Sanctions Program. The enforcement action provides important reminders relating to compliance with various “debt” maturity restrictions and how OFAC construes this restriction. In this Episode, Michael Volkov reviews OFAC’s enforcement action against S&P Global.

General

22 Apr, 2022

SEC Takes Big First Step in Requiring Climate Disclosures

The Securities and Exchange Commission is very busy these days – aggressive enforcement, new rules and regulations, and wrestling with the burgeoning cryptocurrency industry. The SEC will play a key role in rolling out appropriate regulation for Environmental Social and Governance initiatives. A key part of the SEC’s agenda is its long-promised regime mandating disclosure of climate-related risks, greenhouse gas emissions and related financial regulations....

General

21 Apr, 2022

SEC Proposes Robust Cyber Incident Reporting for Public Companies

The Securities and Exchange Commission is busy. The new Chairman Gary Gensler hit the ground running and is pushing an active agenda of policy issues and enforcement. Along with this push, the SEC’s new enforcement director, Gurbir Grewal, is ramping up enforcement actions and priorities. Together, the SEC is poised to cause a big impact in policy and enforcement. As always, a limiting force will...

General

20 Apr, 2022

Antitrust Division Stumbles in Recent Criminal Cases (Part III of III)

Players with fight never lose a game, they just run out of time – John Wooden (UCLA Basketball Coach) If you even dream of beating me you’d better wake up and apologize – Muhammad Ali The Justice Department’s Antitrust Division has suffered setbacks in recent months. Prior to these recent cases, DOJ’s Antitrust Division secured some significant trial victories, including Bumble Bee’s former CEO Chris...