There has been a lot written about CCOs fearing prosecution for compliance failures. Not to say there is no risk, but the truth lies really in the middle.  From my perspective, there is too much fear-mongering around this issue. Let’s look at one extreme – a CCO who engages in misconduct should be prosecuted. A good example of this case is the prosecution of Thomas...

The Justice Department can surprise you – the release of the Yates Memo (here), as it is commonly referred to since it takes on the name of the Deputy Attorney General (e.g. McNulty Memo), is another strange example of DOJ responding to political winds. If anything, DOJ’s action appears a little bit late. The controversy surrounding DOJ’s failure to prosecute an appropriate number of individual...

The Supreme Court is very likely to enter into the fray over the Second Circuit’s controversial Newman decision concerning insider-trading liability. The government has filed a petition for certiorari, and the stakes are high. Insider trading liability for unauthorized disclosures to tip recipients (‘tipees”) flows from the common sense notion that an insider cannot engage, directly or indirectly, in insider trading by personally benefitting from...

I am neither bitter nor cynical but I do wish there was less immaturity in political thinking – Franklin D. Roosevelt. Maybe I am turning cynical in my old age. Maybe I just do not believe that government agencies make decisions for the right reason without sticking a finger in the air to see which way the wind is blowing. I really do not know...

Date: Tuesday, August 11, 2015 Time: 12 Noon EST Sign Up Here Justice Department and SEC prosecutors are devoting greater attention to private equity FCPA enforcement. This coincides with increased SEC regulation and examination of the private equity industry. Private equity companies face significant corruption risks in global markets. From sovereign wealth funds to portfolio companies, private equity compliance officers have to design and implement...

Consider yourself lucky if you work at a company that does not fall within the Title 31 of the US Code definition of a “financial institution.” I am being somewhat dramatic but it is important for every company to have an anti-money laundering compliance program. My suggestion is not designed to promote business or even “scare” companies into addressing this issue – it makes sense...

Some things are really clear in life – everyone knows something has to change but no one acts. Maybe it goes back to a common theme in corporate cultures – an unwillingness to stand out and instead rely on silence or what some like to call – “The GM Nod,” meaning everyone acts like they are in agreement but no one is “bold” enough to...

I have to confess that there is a part of me that was skeptical about a new survey released last week finding that banks and other financial institutions have not embraced a culture of integrity.  (Survey Here).   Indeed, the survey found that numerous individuals continue to operate with the idea that illegal or unethical behavior is a necessary part of succeeding in the financial markets....