Tagged: DOJ

The Forkner Indictment for the Tragic Boeing 737 MAX Fraud and Crashes (Part II of III)

Mark Forkner, a former Chief Technical Pilot, was indicted  on two counts of fraud involving aircraft parts in interstate commerce and four counts of wire fraud.  If convicted, he faces a maximum penalty of 20 years in prison on each count of wire fraud and 10 years in prison on each count of fraud involving aircraft parts in interstate commerce. Boeing began to develop the...

The Fraud Hammer: DOJ and SEC Prosecute CEO of Silicon Valley Start Up

When prosecutors turn on you, watch out. The economy is full of fraudsters, many of whom escape detection.  Conmen, liars and cheats abound – when they get caught, however, the consequences can be severe. Interestingly, the SEC’s enforcement regime extends beyond the public markets and includes private companies.  In the technology sector, there are numerous technology start-ups, all living for the dream to be acquired...

White Collar Enforcement: Here We Go Again

The Justice Department suffered a terrible blow to its reputation during the financial crash in 2008 to 2009 for failing to criminally prosecute those individuals responsible for the financial misconduct.  It was one of the most devastating failures in DOJ history and stands as a stain against DOJ’s accomplishments in prosecuting white collar crime.  The failure to prosecute stemmed from both a lack of will...

Episode 172 — Interview of Brian Whisler, Baker McKenzie Partner, on Department of Justice Changes under the Biden Administration

Brian Whisler is a long-time white collar practitioner at Baker McKenzie.  Brian joined me to discuss the new Biden Administration and the enforcement outlook from the Biden Department of Justice.  Brian has a unique perspective since he served as part of the DOJ transition in 2001 for the incoming Bush Administration. Brian’s Profile is Here. The Episode/Interview is HERE.

Lessons Learned and Trends from MTS FCPA Enforcement Action and Criminal Indictment of Karimova and Akhmedov (Part III of III)

The MTS FCPA enforcement action stands as one of several significant prosecutions in FCPA history.  The breadth and depth of MTS’ corruption scheme stands as another example of systemic bribery cultures.  The details of the enforcement action underscore several important trends and enforcement policies.  Let’s review some of the more significant lessons learned and trends. Application of FCPA Corporate Enforcement Policy: MTS was not able...

Anatomy of MTS, Karimova and Akhmedov Bribery Scheme in Uzbekistan (Part II of III)

The MTS bribery scandal in Uzbekistan represents the culmination of several significant FCPA violations involving VimpelCom, Telia Sonera, MTS, and Gulnara Karimova, the notoriously corrupt daughter of the former Uzbek President.  Karimova is perhaps one of the most notorious corrupt offenders in the world.  She has been under house arrest in Uzbekistan since 2014. (Indictment Here). According to MTS’ admissions, MTS and its subsidiaries, Uzdunrobita...

The Real Explanation for the Record Year for FCPA Enforcement

I am not an “I told you so” person – frankly, it is a very unattractive character trait. I am more comfortable with the old adage – even a broken clock is correct twice a day. I fall into that category. All the FCPA prognosticators, predictors and paparazzi have missed the boat on understanding what happened this year – 2016, to make this a record...

DOJ and SEC Raising the Stakes on Third Party Risk Management

If you review the last ten years of FCPA enforcement, the unmistakable pattern is rising expectations with regard to corporate compliance programs, particularly with regard to third party due diligence and risk management. Over the course of numerous enforcement actions, DOJ and the SEC have reached the point now where they are questioning not just the conduct of due diligence but the quality of due...

FCPA Enforcement Actions and Reputational Damage

If you ask members of a corporate board or senior executives about the cost of an FCPA enforcement action, they will candidly acknowledge all of the costs – fines, penalties, and professional costs (e.g. legal, accounting, forensic). These are significant costs and nothing to sneeze or laugh at (however the expression goes). In a moment of candor the board members and C-Suite executives will confess...

Third Party Risk Management Not Just Due Diligence

The term “due diligence” is an overused expression in the compliance world. It has become a term to mean heightened concern or investigation. No one can really define what it means except to say it has different meanings in different contexts. Some would say it is a term of art in the legal and compliance world. It is misleading to add the term “investigation” to...