Tagged: SEC

10 Nov, 2024

Episode 344 — SEC Settles FCPA Case with Moog, Inc. for $1.7 Million

The SEC notched another FCPA settlement, continuing its steady pursuit and resolution of FCPA cases. In the meantime, the Justice Department has been silent in the FCPA enforcement arena. In its latest settlement, Moog, Inc. (“Moog”), a New York-based global manufacturer of motion controls systems for aerospace, defense, industrial and medical markets, agreed to pay a civil penalty of $1.1 million and disgorge nearly $600,000,...

General

20 Sep, 2024

Deere’s Bribery Schemes — Circumventing Expense Controls (Part II of II)

The Deere case is an important reminder for companies to devote proper attention to ensuring robust integration planning for acquired companies. DOJ has provided important guidance on acquisition practices and the need to integrate acquired companies into the acquiring company’s ethics and compliance program and internal controls. Deere made little effort to integrate Wirtgen into its ethics and compliance program and control environment. As a...

General

19 Sep, 2024

The Deere SEC FCPA Settlement: A Textbook Case of Expense Abuse (Part I of II)

The SEC’s recent settlement with Deere & Company for $9.9 million for FCPA violations is another textbook example of bribery schemes, which revealed the absence of a culture of compliance, and the circumvention of basic entertainment, hospitality and travel expense controls. Deere’s bribery scheme involved its Thailand subsidiary, Wirtgen Thailand, and various improper payments to government officials, including cash, sham consulting fees, extravagant “factory visit”...

SEC Outlines “Effective Cooperation” Standard

General

4 Sep, 2024

SEC Outlines “Effective Cooperation” Standard

The Securities and Exchange Commission is catching up to DOJ. Not in enforcement but in transparency. After years of criticism, the Justice Department has set the gold standard for transparency and providing guidance on enforcement and compliance. The SEC needs to elevate transparency and offer new guidance to the public and industry. It is even more important for the SEC to provide guidance given the...

DOJ’s New Whistleblower Program: Filling in the Gaps and Encouraging Tips (Part II of II)

General

20 Aug, 2024

DOJ’s New Whistleblower Program: Filling in the Gaps and Encouraging Tips (Part II of II)

DOJ is joining the whistleblower reward sweepstakes in a big way. While the SEC has been grabbing headlines for its whistleblower reward program since 2010, DOJ now wants a piece of the action. DOJ cited gaps that exist under the SEC, CFTC, FinCEN and IRS whistleblower reward programs. As examples of how the program will work, DOJ cited the $4.3 billion settlement with Binance last...

SEC Expands Internal Controls Provision to Cover Cybersecurity Incidents and Reaches $2.1 Million Settlement with R.R. Donnelley & Sons Co.

General

16 Jul, 2024

SEC Expands Internal Controls Provision to Cover Cybersecurity Incidents and Reaches $2.1 Million Settlement with R.R. Donnelley & Sons Co.

In a significant expansion of internal controls enforcement, the SEC announced a $2.1 million settlement with R.R. Donnelley & Sons Co. (“RRD”) for its handling of a 2021 ransomware attack and resulting disclosure failures. The settlement represents the SEC’s first application of its internal controls enforcement authority to include cybersecurity policies and procedures. In 2021, RRD suffered a cyber attack in which a threat actor...

Supreme Court Rules SEC’s In-House Adjudication Is Unconstitutional

General

2 Jul, 2024

Supreme Court Rules SEC’s In-House Adjudication Is Unconstitutional

In a recent decision, Securities and Exchange Commission v. Jarkesy, the Supreme Court voted 6-3 to reject the Securities and Exchange Commission’s use of in-house administrative proceedings to adjudicate securities fraud claims. The Supreme Court specifically ruled that the defendant in a securities fraud case has a Seventh Amendment right to a jury trial when the SEC seeks civil penalties against the defendant. The Seventh...

Events

24 Apr, 2024

Webinar: Effective Strategies to Handle Whistleblower Complaints

Webinar: Effective Strategies to Handle Whistleblower Complaints May 21, 2024, 12 Noon EST Sign Up HERE Whistleblower reporting is a real and pervasive threat to companies. The Justice Department, the Securities and Exchange Commission and other regulatory agencies offer financial rewards to potential whistleblowers. This new incentive structure poses real risks for companies that whistleblowers may skip internal reporting and present concerns to fedferal prosecutors...

The SEC’s Recent Action Against Crypto Exchange ShapeShift Lacks Guidance and Draws Internal Criticism

General

21 Mar, 2024

The SEC’s Recent Action Against Crypto Exchange ShapeShift Lacks Guidance and Draws Internal Criticism

On March 5, 2024, the U.S. Securities and Exchange Commission (“SEC”) announced charges and a corresponding cease-and-desist order (the “Order”) with ShapeShift AG, a cryptocurrency exchange registered in Switzerland that previously operated out of Colorado. The Order notes that ShapeShift allowed its users to buy and sell certain crypto assets that are considered securities as defined in Section3(a)(10) if the Securities Exchange Act of 1934. ...

Episode 312 — Eddie Green, CEO of SnippetSentry, on Communications Preservation Risks

Podcasts

10 Mar, 2024

Episode 312 — Eddie Green, CEO of SnippetSentry, on Communications Preservation Risks

Companies have a vested interest in preserving internal communications for a variety of reasons — to hold actors accountable and to protect the organization from potential private and government claims or investigations that may have serious direct or collateral consequences. Companies that want to use ephemeral messaging systems can do so, but they have to understand the risks involved and tailor appropriate controls and procedures...