Little problems can become big ones.  A failure to respond to a risk – whether it is a conflict of interest violation or a weakness in internal controls – can become even more significant depending on the size and scope of the problem. A recent criminal prosecution of two Rockwell Automation executives underscored the nature of this phenomena.  Last month, federal prosecutors arrested and charged...

Alex Cotoia, Regulatory Manager at The Volkov Law Group, rejoins us for a post providing additional color into U.S. Deputy Attorney General Lisa Monaco’s recent announcement on changes to DOJ policies. Alex can be reached at [email protected]. On October 28, 2021, U.S. Deputy Attorney General Lisa O. Monaco—a veteran of government service in previous Administrations and a champion of corporate accountability—announced several significant changes to...

We have heard it over and over, again and again – third-parties pose significant risks of bribery for all global businesses.  Almost every FCPA enforcement action includes some form of third-party misconduct.  The current picture from the Stanford FCPA Resource confirms the story. A cottage industry of automated platforms, data analytics, due diligence and monitoring strategies have grown around third-party bribery risk.  Companies have designed...

Sorry to repeat myself (sorry, but inevitable in my maintaining this blog for 9 years), but the Justice Department, like other enforcement agencies, will tell everyone what they plan to do and then do it.  Not on individual investigations, but in enforcement priorities, strategies and resources.  Lisa Monaco, the Deputy Attorney General (No. 2 in DOJ), delivered an important speech at the National Institute of...

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...

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...

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...

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...

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...