Tagged: Corruption

The Costs of Corruption

We always hear about the macroeconomic impact of corruption. Using large figures in the billions and even trillions (5 percent of global GDP) and painting catastrophic pictures of societal harm, anti-corruption advocates paint a terrifying picture of global, regional and specific country harm. These figures are fairly well established between world and regional development banks and provide ample motivation to join the fight against corruption....

Guest Post from Patrick Henz — Compliance Indicators

I am proud to introduce Patrick Henz, a well-known compliance professional, as a guest contributor today.  Patrick discusses measurements of corruption and appropriate compliance responses. Patrick can be reached at patrick.henz@primetals.com.   Most compliance presentations and documents mention at some point the Transparency International Corruption Perception Index (CPI), as it is by far the best known corruption index. Of course, unlike weight, temperature or time,...

Doing Business in China Should Be “Scary”

Lauren Connell, Managing Associate at The Volkov Law Group, joins us again for another posting on corruption risks in China.  Her profile is here and she can be reached at lconnell@volkovlaw.com. A little fear is healthy. It will keep you vigilant and aware. At this point if corporate compliance departments are not a little fearful of doing business in China then their managers and employees...

Checking In on “The Year of Third-Party Due Diligence”

Hui Chen, the Department of Justice’s Compliance Counsel, recently stated that 2015 was the year of due diligence and third-party compliance. A recent survey conducted by Kroll and Ethisphere provided a status check on how the due diligence compliance effort is going. Many companies have heard the message about the importance of due diligence compliance and instituted due diligence systems, hopefully using automated programs. Companies...

PTC Settlement: Compliance Reminders for Internal Controls, Travel and Gifts

PTC, a Massachusetts software company, reached settlements with the SEC and DOJ last week for FCPA violations for a total of $28 million. Interestingly, the SEC announced a DPA with a PTC official who assisted in the investigation. DOJ also reappeared on the FCPA enforcement radar with a non-prosecution agreement and collection of a $14 million fine. The SEC reached a $14 million settlement with...

Corruption and Foreign Government Institutions

The FCPA can create a very one-sided view of corruption. The bribe payer is punished and most times the recipient is not. The Justice Department has used creative approaches to ensnare recipients as in the Direct Partners enforcement action, but for the most part the recipients are not punished nor even publicly identified. Bribery demands can occur in a variety of contexts; sometimes they are...

Tom Fox and Michael Volkov Webinar — December 1, 2015, 2 PM EST: DOJ Shifts Prosecution Strategy for FCPA Enforcement and Corporate Compliance Programs

I am pleased to announce that Tom Fox, Principal, Advanced Compliance Solutions, and I are conducting a joint webinar on Tuesday, December 1, 2015 at 2 pm EST, on the Justice Department’s shifting FCPA prosecution strategy and compliance program requirements. Please sign up HERE. The Justice Department’s FCPA enforcement program is expected to undergo a significant change in policy focus. Building on the recent adoption...

Should the Definition of “Foreign Official” Matter?

Lauren Connell, Managing Associate at The Volkov Law Group, rejoins us with this posting.  Lauren can be reached at lconnell@volkovlaw.com.  Her profile is here. FCPA practitioners are familiar with the term “public international organization” as included in the definition of “foreign official” for FCPA liability purposes but do we really know what the term means? Recent activity in an enforcement action for allegedly bribing a...

Resetting FCPA Prosecution Policies

Recent press reports suggest that the Justice Department is reconsidering its FCPA criminal prosecution policies, particularly with respect to corporate defendants.  As reported, DOJ is considering defining and increasing corporate benefits from voluntary disclosures and cooperation.  This re-evaluation appears to have been triggered by changes in the Criminal Division leadership. DOJ’s recent Yates memorandum imposed new and significant obligations on companies seeking credit for cooperation...

Reinvigorating Corporate Board Governance to Embed a Culture of Ethics and Compliance

“It is Time” – Rafiki, The Lion King Corporate scandals continue to rack up – I am not just blowing smoke on this fact. Corporate boards are under greater scrutiny but the hardest place to bring reform is the corporate boardroom. Old institutions do not change quickly and there is an inherent resistance to change when it comes to a corporate boardroom. The old dynamic...