Tagged: remediation

Four Current FCPA Enforcement Trends

There are two distinct themes in FCPA enforcement – the first is consistency, i.e., that some enforcement actions are relatively consistent across the board and, in the last five to ten years, the FCPA caseload has been fairly steady; the second is variability, meaning that new policies have an impact on FCPA enforcement.  Some minor and some major.  All of this may be another in...

Five Key Takeaways from DOJ’s New FCPA Corporate Enforcement Policy

In a significant FCPA enforcement development, DOJ’s Deputy Attorney General (“DAG”) Rod Rosenstein announced the implementation of a new FCPA Corporate Enforcement Policy last week. (Here).  The announcement was not a surprise based on earlier statements made by DAG Rosenstein. Before outlining the specific five takeaways, there are a few issues surrounding the release of the new policy that require some comment. DAG Rosenstein implemented...

Can Wells Fargo Fix its Defective Culture? (Part I of III)

The more you learn about Wells Fargo’s culture problems, the more difficult the problems become. But you have to start somewhere, and assuming that Wells Fargo really is committed to addressing the serious problems they face, this will take a long time and a lot of work. Wells Fargo is really at the early stages of a massive remediation project. The board has essentially taken...

A Strategy for Non-Disclosure of FCPA Violations

We all understand that issues are not black and white, meaning there are areas of gray when analysis and cost-benefits need to be weighed. Lawyers are regularly identifying legal risks and applying such risks to specific courses of action. Depending on the countervailing considerations, lawyers can recommend moving forward in the face of a specific risk. Much has been written (including on this blog) about...

FCPA Remediation Focus on Supervisory Personnel

The Justice Department’s FCPA enforcement and remediation focus on supervisory personnel is an interesting development. On the one hand, DOJ has been slow to bring individual criminal enforcement actions for FCPA violations. At the same time, they are flirting with a potential new enforcement approach – a criminal prosecution for circumventing internal controls without proof of bribery. However, FCPA prosecutors appear to be gun-shy after...

Unpacking the Justice Department’s Compliance Remediation Standards (Part I of II)

The Justice Department has a lot to be proud about when it comes to its FCPA enforcement program. In one area in particular – promoting effective ethics and compliance strategies – DOJ’s FCPA prosecutors have played a leadership role in promoting ethics and compliance programs. When reviewing the history of compliance, most practitioners point to the impact of the Sentencing Guidelines as the most significant...

The FCPA Pilot Program Disciplinary Standards (Part II of II)

Returning to the FCPA Pilot Project requirements for timely and appropriate remediation, the Justice Department added three new elements, one of which reinforces the CCO “independence” requirement. The two other elements for an effective ethics and compliance program focus on the qualifications and compensation of compliance officers. First, with respect to the structure of the company’s compliance program, the Justice Department listed the reporting structure...

Trends from 2016 Record FCPA Enforcement Year (Part II of III)

No matter how you cut it – this was a big year in FCPA enforcement. Not just because of the large enforcement actions but the scope and depth of enforcement, remediation and compliance program demands. We are witnessing a significant turning point in FCPA enforcement in which the Justice Department and the SEC are slowly but surely pushing companies to embrace a more robust ethics...

Aggressive Remediation: Embraer and JP Morgan

There is no question that the Justice Department has raised compliance program expectations in a number of areas. Whatever you may think about the efficacy or fairness of the FCPA Pilot Program, the Justice Department has committed itself to increasing transparency. That is a very good thing. If you go back and review FCPA settlement actions from years ago, you will not find any structured...

DOJ’s Pilot Program – The Five Factors Designed to Nurture the Compliance Function

Perhaps the most positive and important aspect of the FCPA Pilot Program was the announcement of forward-looking and innovative remediation requirements for corporate compliance programs. As an aside, DOJ’s FCPA Pilot Program was a disappointment and failed to deliver meaningful incentives for companies to self-disclose FCPA violations to the Justice Department. The difference between 25, 50 and 75 percent from the bottom of the sentencing...