Tagged: Securities and Exchange Commission

CEO Falls to SEC FCPA Settlement

Companies have definitely matured in the development and implementation of their ethics and compliance programs.  Whether the pace has been rapid enough or is too slow, that is a debatable issue.  A good litmus test for a mature ethics and compliance program is whether the company assesses and mitigates its C-Suite risks. Over and over again, companies fall under government scrutiny because of misconduct in...

Sanofi Coughs Up $25 Million to Settle SEC FCPA Charges

Well, add another pharmaceutical company to the FCPA healthcare “sweep.”  Frankly, the term “sweep” makes it sound like a coordinated enforcement effort – instead, it is more accurate to think of it as multiple prosecutions against a high-risk industry. Whatever the enforcement background, Sanofi settled an FCPA case with the SEC for $25 million.  DOJ closed its investigation of Sanofi in March 2018.  The SEC...

Time to Review and Revise Your Internal Controls (Part I of II)

Laws control the lesser man — right conduct controls the greater one – Mark Twain A company’s internal controls define the backbone of its operations, encompassing financial, operational and compliance functions. The FCPA defines requirements for publicly-traded companies to implement internal controls, including compliance controls.  Under the internal controls requirements, issuers must devise and maintain a system of internal accounting controls sufficient to assure management’s...

2017 FCPA Year in Review (Part I of II)

With the close of 2017, FCPA enforcement continues as a major priority for the US Department of Justice.  Notwithstanding fears and concerns that the new administration would turn its back on FCPA enforcement, the Justice Department’s work continues unabated and unhindered.  All the doomsayers have to admit that no big changes have occurred in the Justice Department’s commitment to battle global corruption. The Numbers Looking...

Wait a Minute – The FCPA Enforcement Sky Did Not Fall?

No matter what, I am an optimist. A pessimist’s worldview and lifestyle is really unattractive. I would always rather see the glass as half full. Too many in the professional world have confused negative perspectives and predictions as a way to demonstrate their own expertise. It is an unfortunate practice in today’s professional world that negativity has replaced unbiased expertise. Pessimists always argue that if...

Rescheduled Webinar: Rising Government Expectations for Compliance Programs

Rescheduled Webinar: Rising Government Expectations for Compliance Programs   November 10, 2016, 1 PM EST Sign Up Here My apologies but I had to reschedule the webinar: Rising Government Expectations for Compliance Programs to November 10, 2016, 1 PM EST. The Justice Department has made it clear that companies have to design and implement effective compliance programs.  Recent enforcement actions have highlighted weaknesses in corporate compliance...

Headlines from Mid-Year FCPA Enforcement Review

Just to add my voice to the cottage industry surrounding FCPA enforcement and compliance, I wanted to take a deep breath and offer some observations on FCPA enforcement in 2016. There are a few significant headlines for the year so far, and I suspect more to come as we get close to the end of the year when FCPA enforcement usually picks up a little...

Analogic FCPA Settlement – From Russia With(out) Love

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...

Do Former Prosecutors Make Good CCOs?

A number of companies have adopted the requirement that a new Chief Compliance Office come from the ranks of former federal prosecutors. I am not sure exactly why companies have adopted this requirement. Perhaps company leaders think this will give the company an advantage when dealing with the Justice Department or the SEC. With full disclosure here, I admit my bias in favor of federal...

Global Standardization of Enforcement

Maybe I am a Luddite; maybe I just do not understand the new world and the impact of globalization. New ideas do not scare me, like others we know. New ideas present real opportunities for progress and innovation. I understand the impact that globalization has had on our economy, our society and our country. There are many positive benefits that flow from this incredible transformation...