Analogic Corp. and its Danish subsidiary, BK Medical ApS, settled an FCPA enforcement action last week with the Justice Department and the SEC for approximately $14 million. Analogic agreed to pay $3.4 million to the Justice Department as part of a non-prosecution agreement (NPA), and paid the SEC approximately $11.4 million in disgorgement and interest. Lars Frost, a former CFO at BK Medical, settled an...
In response to aggressive FCPA enforcement and recurring problems with third parties, companies have spent substantial resources and time to design and implement comprehensive ethics and compliance programs. A key part of this effort was to implement robust due diligence programs to screen and identify potential risks created by third party intermediaries. Hui Chen, DOJ Compliance Counsel, called 2015 “The Year of Due Diligence.” Many...
Global companies have been embracing socially responsible spending projects to build stronger relationships with local communities. The idea makes a lot of sense and real projects can result in real benefits. As with any significant source of money, there are risks. Major global companies have been caught in some embarrassing situations, some of which can have real legal and reputational consequences. Think of the irony...
I was honored to conduct a live, video webinar last week on third party due diligence, focusing on the importance of beneficial ownership. My co-panelists were Bill Hauserman and Ted Datta from Bureau van Dijk. You can watch the webinar and download the slides from the webinar (here). I have been impressed with BvD’s product offering – key tools in your third party screening process...
In case you are not following all the latest scandals – Unaoil and the Panama Papers being two significant ones – we are seeing an evolution and possibly a revolution in due diligence expectations. No matter what context or what your specific concern may be, the need for every compliance department to identify the beneficial owners of joint venture partners, third party intermediaries, distributors, agents...
When a scandal hits the media like the Panama Papers leak of 11.5 million confidential legal records, we all know what to expect. Criminal investigations, regulatory responses, and of course, congressional hearings of some sort so that everyone gets a piece of the scandal pie. The International Consortium of Investigative Journalists (“ICIJ”) reported the leak of 11.5 million confidential legal records designed to expose shell...
I am excited to announce a new sponsor of Corruption Crime and Compliance, Bureau van Dijk (BvD). I have been impressed with BvD’s product offering – key tools in your third party screening process that offer difficult to find information. BvD specializes in information on private companies, detailing company hierarchies and standardized financial reports so you can compare companies across international borders. BvD’s product range...
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...
FCPA enforcement actions run the gamut of fact patterns and structured resolutions. We are in the midst of a transformation in the overall settlement environment with an expected increase in individual prosecutions. On the one side, we have a tough and comprehensive DOJ and SEC settlement against VimpelCom. The conduct within VimpelCom was pervasive and occurred at every level of the company, including the board....
The VimpelCom FCPA settlement underscored the importance of Compliance 2.0 and the need to reform board deliberations and governance. No one can read the facts without shaking their heads and asking – what was the VimpelCom board thinking? The VimpelCom board’s failure to act reflects the key driving force inside the corporate boardroom – defense. When a company is not being led by the board...
