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FCPA Compliance Report

Tom Fox has practiced law in Houston for 30 years and now brings you the FCPA Compliance and Ethics Report. Learn the latest in anti-corruption and anti-bribery compliance and international transaction issues, as well as business solutions to compliance problems.
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Now displaying: 2016
Dec 29, 2016

In this episode Mike Volkov and myself take a deep dive into the Odebrecht/Braskem and Teva FCPA enforcement actions. We review the underlying facts, the conduct of the parties, the results obtained and what it all means for the compliance practitioner going forward.

Dec 23, 2016

Show Notes for Episode 33, week ending December 23, 2016-Holiday edition

  1. Odebrecht/Braskem FCPA enforcement action. Braskem InformationBraskem Plea AgreementOdebrecht InformationOdebrecht Plea AgreementSEC Civil Complaint.
  2. Goldman Sachs further ensnared in 1MDB scandal. Link to article in Wall Street Journal.
  3. Teva FCPA enforcement action. Teva InformationTeva Plea AgreementTeva DPA
  4. Pre-taliation enforcement heats up, on Radical Compliance.
  5. NFL Playoff update on Patriots, Cowboys and Texans.
Dec 21, 2016

In this episode SCCE CEO Roy Snell and I continue are exploration of issues of import to the compliance profession. We consider the penalty assessed by the NCAA on Notre Dame for it use of two ineligible football players and whether the punishment fit the crime; the forced transparency leading to hyper transparency for today's corporate scandals and the sanctions assessed against former Wells Fargo CEO John Stumpf; advise not send out stupid emails and consider how the safety industry evolved 20 years ago and what implications it might have for the compliance profession going forward. 

Dec 21, 2016

In this episode I visit with Juliet Lui as we discuss how to best handle small and medium investigations in an efficient and cost effective manner. We discuss how such matters often slip through the cracks as they are not perceived as high profile yet can cause significant problems if allowed to fester. We discuss methodology, costs and deliverables. Lui details two case studies to emphasize how important small and medium investigations can be as they often uncover larger and more critical problems and issues. 

Dec 15, 2016

In this episode SCCE CEO Roy Snell and I take a deep dive into corporate governance and compliance, the public skewering of former Wells Fargo CEO John Stumpf and ask if a CEO should be involved in the hiring of a CCO. 

Dec 14, 2016

In this episode Matt Kelly and I take deep dive into the United Airlines SEC enforcement action for violation of internal controls around its reinstitution of a route from Newark to South Carolina at the insistence of the then Chairman of the New York and New Jersey Port Authority David Sampson in exchange for a concession to expand its physical facilities at the Newark airport. We review the background facts, as set out in the SEC Cease and Desist Order and the Justice Department Non-prosecution. We take a look at the internal controls violation of the former UA CEO for violating the company's Code of Conduct, the finding of a lack of internal controls around its route reinstitution protocol and finally discuss the problem of senior management override of internal controls. 

For more information on this enforcement action, check out Matt's blog post on this matter, entitled, "This Weird United Airlines Case Just Happened and my blog post entitled, "The Chairman's Flight and the US Corrupt Practices Act". 

Dec 13, 2016

In this episode, I visit with Houston Chronicle business columnist Chris Tomlinson about his time working internationally for the Associated Press. He relates his first hand view of the invidiousness of corruption in African countries. He also talks about how a major FCPA corruption trial would be covered. He concludes with thoughts about the role of the Fourth Estate in the international fight against corruption. 

Dec 9, 2016

Show Notes for Episode 32, week ending December 9, 2016-the Fly the Not So Friendly Skies edition: 

  1. United Airlines SEC enforcement action for domestic; the Chairman’s Flight and the US Corrupt Practices Act, for a copy of the Justice Department NPA, click here and for a copy of the SEC Cease and Desist Order, click here.
  2. Monetary Authority of Singapore seeks to suspend former Goldman Sachs trader in 1MDB scandal. Link to Fox blog post on Compliance Week.
  3. FATF report that US weak on beneficial ownership issues, for a copy of the report, click here.
  4. Wal-Mart up to $820MM in pre-settlement FCPA settlement spend, on Radical Compliance.
  5. Release of eBook, Trump on Compliance.
  6. SEC Director of Enforcement, Andrew Ceresny announces he will leave the SEC. See NYT article, here.
  7. GibsonDunn briefing on The Road Ahead: DOJ and Federal Enforcement in the Trump Administration predicts a Southern California centered FCPA matter will be concluded by year end.
  8. 10th Annual SEC & DOJ HOT TOPICS 2017 -- Current Developments Materially Affecting Corporations, Financial Institutions, Individuals organized by Sandpiper Partners LLP and program developed by PwC, notes GibsonDunn partner Deb Yang listed as potential SEC Commissioner.
  9. Jay Rosen weekend report update.
Dec 8, 2016

We are back to our more rounded format for this episode on a variety of topics including anti-corruption enforcement across the globe, the new French anti-corruption law, Sapin II, the Agricultural Bank of China compliance enforcement action by the state of New York Department of Financial Services; how corruption influences as much as it pays money and individual accountability for corporate malfeasance is not a Democratic or GOP issue but a law enforcement issue. We end with a well-deserved one minute rant from the panel about what is in the front of their mind.

Mike Volkov discusses the internationalization of anti-corruption enforcement. He refers to the comments from the ACI FCPA conference, by Kara Brockmeyer and Dan Kahn about the increasing international enforcement efforts against corruption. This extends far beyond cooperation but also to enforcement. Recent examples are VimpelCom and Embraer where other countries received proceeds from fines and penalties. How does a company begin to deal with this type of complexity? Who does it disclose to? Who does it pay? When will the US give credit for payments made to other countries and when does it not? Finally this year saw of the third joint DOJ/SEC week long training for foreign prosecutors put on in DC. How do such events assist enforcement efforts, particularly around cooperation and mutual assistance?

For Tom Fox’s blog post, “Anti-Corruption Enforcement Has Gone International?” click here

  • Matt Kelly leads a discussion dive into the AgBank enforcement/sanction action. He explains what does it all means and then pivots into a discussion of where he might see state regulators such as the state of New York Department of Financial Services or state banking regulators becoming more aggressive if the Trump administration pulls back? He discusses how these issues may have relevance for areas of compliance other than bribery and corruption and if so how. Finally, he ends with a reverse states’ rights discussion of Democratically aligned states fighting federal roll back of rights and privileges through litigation.

For Kelly’s posts, see post on the enforcement action involving the Agriculture Bank of China, click here

  • Jonathan Armstrong leads a discussion on the new French anti-corruption law, Sapin II. He discusses the genesis of the law and why prior French efforts at anti-corruption law and enforcement was so harshly criticized by the OECD. He articulates how Sapin II differs from the UKBA, FCPA, the Brazilian Clean Companies Act and other anti-corruption laws across the globe. He talks about where he envisions French enforcement efforts going and the whistleblower protections of the law. Finally he ends with the key piece(s) of advice for clients regarding this law Cordery is suggesting around this law.

For Cordery’s piece on the new law click here.

Jay Rosen takes us through a Paul Krugman NYT post on some of the invidiousness of corruption, focusing on the corrupting nature of compliance around undue influence. Rosen explains incentives more than anything else and how such incentives skew the marketplace. We consider whether Trump’s discussions with the Carrier Corp over jobs was unduly influenced recalling President Kennedy’s ‘jawboning’ of the US steel industry in the 1960s. He also discusses the remarks of Sally Yates at ACI national FCPA conference about individual accountability and how this is not a GOP or Democratic issue but a criminal enforcement issue. For a link Krugman post, click here. For a copy of the text of Yates remarks, click here.

For a copy of Jay blog post entitled, “The DOJ and SEC Share Patriots Mantra—Next Prosecutor Up” click here.

Rants this week include the new UK surveillance law, the SEC domestic corruption enforcement action involving United Airlines for the Chairman’s Flight and the Chicken Littles of the compliance world claiming the sky is falling.

Dec 7, 2016

In this episode, Matt Kelly and I take a deep dive into two areas which will impact compliance practitioners going forward. They are the Justice Department under the Trump Administration and the legislative process going forward. At the DOJ, there will probably not be too much change from the priorities of terrorism and cyber security. We discuss the legislative process in the context of the main street based campaign of candidate Trump and the Wall Street focus of his cabinet and the GOP dominated Congress. We also wonder how much the GOP congressional losses will require some cross-over from Democrats will impact the legislative agenda of Paul Ryan and Mitch McConnell. 

For additional reading, see Matt's blog posts:

  1. Compliance in the Trump Era-Part II: FCPA and 
  2. Compliance in the Trump Era-Part III: Legislation.
Dec 6, 2016

In this episode, I visit with Miller & Chevalier Counsel, Saskia Zandieh on the new French anti-corruption law, Sapin II. She discussion how it may improve the nation's current anti-corruption framework, and review the practical implications gleaned from lessons learned from the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act. Zandieh addresses key changes made by Sapin II, including: (i) expanded jurisdictional reach of French prosecutors in bribery cases; (ii) creation of the "Agence française anti-corruption" (AFA), a new anti-corruption agency; (iii) a new compliance program requirement; (iv) whistleblower protection provisions; (v) the introduction of U.S.-style deferred prosecution agreements to the French legal landscape; (iv) and international double jeopardy considerations.  

She notes that with Sapin II, France has the potential to become a major player in anti-corruption enforcement. For more information on the new law see the Newsletter co-authored by Zandieh entitled, "France's New Anti-Corruption Law: A Game Changer or More of the Same?" by clicking here. 

Dec 2, 2016

Show Notes for Episode 31, week ending December 2, 2016-the Government Speaks edition

  1. Justice Department Assistant Attorney General Sally Yates remarks at 33rd annual ACI National FCPA Conference;
  2. Head of SEC Enforcement Andrew Ceresny remarks at 33rd annual ACI National FCPA Conference;
  3. Richard Bistrong interview of Barry Vitou on the future of the SFO, on the FCPA Blog;
  4. Release of new eBook on Trump and Compliance by the Everything Compliance podcast gang, published by Corporate Compliance Sights;
  5. Matt Ellis releases new book on The FCPA in Latin America;
  6. With help from US, Dutch enter the global fight against terrorism in a big way, see article by Geert Vermeulen, on the FCPA Blog;
  7. Bloomberg News is reporting a potential settlement by Brazilian & US authorities with Odebrecht for $2.5bn over corruption allegations unearthed in Operation Car Wash;
  8. Reflections on the First FCPA Mock Trial Institute; and
  9. How ‘bout them 11-1 Cowboys and the impact of Gronk’s injury on the Patriots.
Nov 30, 2016

What is risk and how should it be evaluated? What is the data that should be reviewed to determine if an increase in sales is based on unethical or even illegal behavior? Finally, what happens when you migrate company personnel who have been involved in such illegal or unethical behavior to other locations, does their nefarious conduct spread throughout the organization or is it curtailed? In this episode Matt Kelly and I explore some of these questions and others. 

Every Chief Compliance Officer (CCO) and compliance practitioner understands that the sales side of a business is where the highest risk is located because that is most generally the side of the business which generates the most money and potential profit. Yet looking at sales numbers are not something which compliance professionals will generally have access to as a part of a compliance program. 

 

Sales spikes in low performing regions can and should be reviewed by a wide variety of disciplines within an organization, including compliance. One would think that companies would want to know and understand the reasons for any sales increase so that it could be determined if such strategies might work in other areas of a company’s operations. This is true for the compliance function as well. As far back as the December 2012, in the Eli Lilly Foreign Corrupt Practices Act (FCPA) enforcement action brought by the Securities and Exchange Commission (SEC), I raised the issue that a dramatic sales increase should be reviewed by compliance to determine if there were any corruption issues involved. This same logic works for sales in the US over products as benign as debit cards. Moreover, if you consider whether the issue should be reviewed by a Board of Directors, it certainly would be material for one state region going from worst to first in sales. 

One CCO told me that every time he hears an employee who wins a sales award for making numbers wildly far above plan, he wonders what might have led to such remarkable attainment. Sales spikes is data that increasingly becomes more important for compliance to consider. Just as the Key Energy FCPA enforcement specifically mentioned transaction monitoring around massive increases in gift giving in a geographic region where sales had spiked.

Nov 29, 2016

Show Notes

  1. Introduction
    1. What is the FAR
    2. What’s the differences with DFARs
    3. What types of companies should be concerned
    4. What are some examples of covered with these regs (eg. Ozone depleting substances, child labor, sanctions/debarment)
  2. Reporting requirements
  3. What sort of resources are available to help demonstrate compliance

  What is the Federal Acquisition Regulation (FAR)

  • The purpose of the FAR is to provide uniform policies and procedures for acquisition of goods supplied to the US federal government. Among its guiding principles is to have an acquisition system that satisfies customer's needs in terms of cost, quality, and timeliness; minimize administrative operating costs; conduct business with integrity, fairness, and openness; and fulfill other public policy objectives
  • At over 1,800 pages in its entirety, is a substantial and complex set of rules governing the procurement of all goods and services required by the U.S. Government
  • When a federal government agency issues a contract, it will specify the applicable FAR provisions, which may be numerous. In order to be awarded a contract, a company must either comply with the provisions, demonstrate that it will be able to comply with them once awarded, or claim an exemption from them (eg. Small business exemption)
  • All government issued contracts include any number of the FAR and/or DFARS clauses either in full text or by reference requiring the company issued the contract to demonstrate compliance to the requirements
  • Failure to comply with the requirements of FAR and DFARS may result in loss of contract or monetary fines

 What’s the differences with DFARs?

  • Updated in July of this year the DFARS is one of the best-known examples of an agency supplement to the FAR addressing further reporting requirements put forth by the Department of Defense
  • This supplement covers contracts with the office of the secretary of defense, branches of the military, and other defense agencies
  • In order to be in the running for one of these highly lucrative defense contracts, companies need to stay on top of the latest changes to DFARS and ensure their contracts, systems and processes reflect these requirements

 What types of companies should be concerned?

  • Companies that conduct their business with agencies of the US govt including defense contractors
  • Additionally those companies selling to organizations which conduct business with agencies of the US govt. will likely be asked to supply certain documentation to support their customer’s ability to demonstrate compliance
  • Winning a federal or defense contract means complying with laws and regulations unique to those doing business with the government. Many new contractors as well as their suppliers, are often unprepared for the rules and regulations they must follow and demonstrate, which can lead to costly errors and potential legal problems

 Why should they be concerned? 

  • Depending on the type of end product provided to government agencies, different types of concerns or risk becomes a focus in such situations

Reporting Requirements

  • In many cases sufficient screening, policy reviews and certification collection and validation will allow reporting companies to demonstrate compliance. But the issue isn’t necessarily what you have to collect to demonstrate compliance to meet FAR requirements (or report to customers which are obligated to) it’s how you do it.  Having a platform which can automate the data collection process as well as act as a repository is where most struggle…
  • What sort of resources are available to help me demonstrate compliance with these regs
    • We’ve created workflows to meet 48 of the specific FARs/DFARS supplier reviews and data collection processes
Nov 21, 2016

This episode is dedicated exclusively to where FCPA enforcement, SEC enforcement, the compliance profession and compliance programs may be headed under the Trump administration, with a dash of anti-trust enforcement and EU Privacy Shield.

  • Mike Volkov about where FCPA enforcement may be headed. We explore how FCPA cases are largely self-funded through company internal investigations which are turned over to the Justice Department. Volkov discusses funding and resources for the Department’s FCPA unit. He also touches on potential (or the lack thereof) of anti-trust enforcement going forward.

For Volkov’s post, “A New Administration: A New FCPA Enforcement Regime?” click here.

  • Matt Kelly leads a discussion on how the new administration may view the SEC going forward. He considers the announced resignation of SEC Chairman Mary Jo White and the appointment (and dismissal) of Kevin O’Connor from Trump’s transition team. Matt explains how Trump’s attacks on Dodd-Frank focus on easing rules for capital formation not on the whistleblower provisions or other sections more applicable to the compliance profession.

For Kelly’s posts, see the following:

  1. Five Post-Election Points for CCOs to Ponder;
  2. It’s Starting: Disclosure of ‘Trump Risk’;
  3. Compliance in the Trump Era, Part I: The SEC;
  4. A CCO Voice Emerges in Trump World; and
  5. Well That Didn’t Last Long
  • Jonathan Armstrong leads a discussion of the view from across the pond on where anti-corruption compliance enforcement may be headed after the election. He considers what the effects might be on the UK Serious Fraud Office (SFO)? He also considers what the effect of the Trump election might mean for EU and UK privacy advocates, privacy protections and privacy legislation going forward. He also discusses issues surrounding Privacy Shield. Privacy Shield faces a number of challenges from regulators, courts and possibly from the European Parliament.  A new Trump administration is likely to make Privacy Shield’s future even more uncertain.  Jonathan’s thoughts on Privacy Shield are here - http://www.corderycompliance.com/privacy-shield-faqs/

For Armstrong’s blog post, “What does the election of President Trump mean for compliance?” click here.

  • Jay Rosen takes us through how all of this may well be much ado about nothing. He points out that the compliance profession will continue to thrive as it becomes more as a part of business processes. From his role as ‘Mr. Translations’ he explains that companies have been moving compliance into the fabric of organizations and that by doing so, companies become better run, more efficient and more profitable.

For Rosen’s blog post (and great riff off of The Clash) “Should I Stay or Should I Go?”, click here.

  • For my blogs posts on these topics see the following:
  1. FCPA Enforcement Going Forward in the Trump Administration;
  2. Compliance Isn’t Going Away (and neither should you), Part I;
  3. Compliance Isn’t Going Away (and neither should you), Part II;
  4. Compliance Isn’t Going Away (and neither should you), Part III; and
  5. Why FCPA Compliance Makes America Great.

The members of the Everything Compliance panel include:

  • Jay Rosen (Mr. Translations) – Jay is Vice President of Legal & Corporate Language Solutions at United Language Group. Rosen can be reached at rosen@ulgroup.com.
  • Mike Volkov – One of the top FCPA commentators and practitioners around and is the Chief Executive Officer (CEO) and owner of The Volkov Law Group, LLC. Volkov can be reached at mvolkov@volkovlawgroup.com.
  • Matt Kelly – Founder and CEO of Radical Compliance, is the former Editor of the noted Compliance Week Kelly can be reached at mkelly@radicalcompliance.com
  • Jonathan Armstrong – Rounding out is our UK colleague, who is an experienced lawyer with Cordery in London. Armstrong can be reached at armstrong@corderycompliance.com.

For additional reading check out some of the following posts:

  1. Over at the Global Anti-Corruption Blog, Matt Stephenson talks about his nightmare version of a Trump administration for the global fight against anti-corruption.
  2. NYT Times DealB%K- on what DOJ and SEC enforcement may look like going forward.
  3. Sam Rubenfeld at the WSJ Corruptions Currents online site,a collection of some thoughts on what a Trump administration may mean for compliance.
  4. SCCE CEO Roy Snell tells us how he has seen it all before and advises everyone to wait a year and see what happens.
  5. Finally, in an uncharacteristically restrained post, the FCPA Professor advises everyone to take a deep breath, when it comes to FCPA enforcement under a Trump administration.
  6. Mike Scher advises President-Elect Trump to consider compliance officers.
Nov 18, 2016

Show Notes for Episode 30, week ending November 18, 2016-the Thanksgiving edition:

  1. Teva Pharmaceuticals reserves $520MM for FCPA settlement, reported in the FCPA Blog.
  2. JP Morgan FCPA enforcement action surrounding its ‘Sons and Daughters’ hiring program. Non-Prosecution Agreement and SEC Cease and Desist Order.
  3. SEC 2016 Report of the Office of Whistleblower.
  4. 2st edition of Everything Compliance Podcast, devoted entirely to issues of FCPA, Dodd-Frank and SEC enforcement under Trump, the compliance profession going forward and what does the new administration mean for EU Privacy Shield. (Podcast available on Monday, November 21).
  5. Mike Scher on his open letter to President-Elect Trump on the importance of compliance professionals going forward. Click here for the FCPA Blog posting, Dear President Trump, Compliance officers are still underdogs
  6. How about them Cowboys. Who you got for MVP, Prescott or Brady?
  7. Additional reading on the background to JP and views on the enforcement effort, see:
  8. FCPA Professor NPR Interview;
  9. Matthew Stephenson agrees with the enforcement theory, while Andy Spalding doesn’t; and
  10. Penn Law Review take on the issues involved.
Nov 17, 2016

In this episode, Matt Kelly and I take a deep dive into a couple of issues surrounding the new Trump administration. The first is the 'Trump Risk' disclosure that several companies have made since the election. The second is around Dodd-Frank and the SEC going forward. When Trump speaks about repealing Dodd-Frank, it means easing rules for capital formation, not the whistleblower program or other more traditional compliance related roles and issues. We discuss Paul Adkins, who is heading up the Trump transition at the SEC and what his prior tenure at the SEC may portend. Finally we discuss why the SEC whistleblower program is not going away but there may be a change in focus from the current aggressive approach under Chairman Mary Jo White.  We wave good-bye to Kevin O'Connor who was in then out on the Trump DOJ transition team. For more reading see Matt's blog posts:

1.Compliance in the Trump Era, Part I: The SEC

2. It's Starting: Disclosure of 'Trump Risk'

Nov 15, 2016

In this episode, I visit with white collar defense specialist Sara Kropf, founder of the Kropf Law Firm. She discusses defending corporate executives and employees who are caught up in corporate internal investigations which may be turned over to the government. She discusses how the Yates Memo has changed the relationship between such employees, their counsel and the company. She blogs at Grand Jury Target blog. 

Some of the issues we explore include the following. 

  1. What are the obligations of inhouse counsel to inform an employee of his or her potential 5thamendment rights before an interview?
  2. Does the DOJ emphasis on internal investigations turn outside counsel to a de facto arm of the government for criminal procedure purposes if there is a chance the internal investigation will be disclosed to the government?
  3. What should a company do if the DOJ instructs them to stand down and allow the government to interview an employee?
  4. What should a company do if an employee refuses to answer questions or even meet with internal investigators?
  5. What happens is an employee who refuses to meet with company investigators runs to the government to either (1) present their own version of the facts to the DOJ or (2) cut a deal to avoid or lessen prosecution?
  6. What are the different types of proffers?
  7. Why indemnification is critical for senior executives and employees?
Nov 11, 2016

Show Notes for Episode 29, week ending November 11, 2016-the Brave New World   edition: 

  1. Trumps stunning and surprising win and what does it mean for regulatory enforcement and FCPA –See article in the New York Times, Deal Book -- How Trump’s Presidency Will Change the Justice Dept. and S.E.C.; for additional views on see Matt Kelly’s thoughts on his site, radicalcompliance.com “5 Post-Elections Points for CCOs to Ponder; for the nightmare scenario, see Matthew Stephenson’s blog post, “US Anticorruption Policy in a Trump Administration: A Cry of Despair from the Heart of Darkness” and finally Jack Kelly’s perspective from the compliance arena in the financial services sector (Dodd-Frank), “It is Not Looking too Good for Compliance Officers in the New Trump Administration”. The next Everything Compliance podcast will be devoted to this top;
  2. New French Anti-Corruption Law (Saipan II) – click here for Miller & Chevalier newsletter on this new law. http://www.millerchevalier.com/Publications/MillerChevalierPublications?find=183702
  3. The VW emissions-testing scandal investigation expands. As reported in the FCPA Blog, German prosecutors name VW chairman in expanded probe;
  4. 1st edition of Everything Compliance Podcast, the new podcast in the FCPA Compliance and Ethics Report podcasting network;
  5. Scott Moritz continues his two-part series on compliance and M&A, focusing on post-acquisition. Click here for the FCPA Blog posting, A plan to integrate the compliance program after an acquisition;
  6. Rio Tinto announces it has suspended a senior executive for payment to a consultant to assist the company obtain a mining concession in Guinea that it had previously lost. See blog post on the FCPA Compliance and Ethics Report;
  7. Joe Warin and Julie Rapoport Schenker discuss the intersection of corporations, white collar defense and trials in their law review article on why companies refuse to settle and instead go to trial. To read click here; and
  8. The Jay Rosen Weekend Report.
Nov 10, 2016

In this episode, Matt Kelly and I take a deep dive into how the SEC may look under the Trump administration and what it may portend for FCPA enforcement. We consider how companies currently under investigation or engaged in negotiations for a resolution may position themselves during the final months of the Obama administration. For additional information check out Matt Kelly's blog post on the subject, click here- Five Post-Election Points for CCOs to Ponder

Nov 10, 2016

Show Notes for Episode 1

At the SCCE 2016 Compliance and Ethics Institute, I sat down with four of the top compliance commentators in the field for my first roundtable-style podcast. It was so successful that I persuaded the gang to come back together every couple of weeks for a formal podcast, which is entitled Everything Compliance. The premier episode is available for your listening pleasure today. I will post a new episode every two weeks.

I host these four well-known compliance practitioners and commentators:

  • Jay Rosen (Mr. Translations) - Jay is Vice President of Legal & Corporate Language Solutions at United Language Group. Rosen can be reached at rosen@ulgroup.com.
  • Mike Volkov - One of the top FCPA commentators and practitioners around and is the Chief Executive Officer (CEO) and owner of The Volkov Law Group, LLC. Volkov can be reached at mvolkov@volkovlawgroup.com.
  • Matt Kelly - Founder and CEO of Radical Compliance, is the former Editor of the noted Compliance Week Kelly can be reached at mkelly@radicalcompliance.com
  • Jonathan Armstrong - Rounding out is our UK colleague, who is an experienced lawyer with Cordery Compliance Limited in London. Armstrong can be reached at armstrong@corderycompliance.com.

The format is a roundtable discussion where I throw out a question to one commentator to lead the discussion. From that starting point we will all join in. I also include an “On My Mind” segment where each participant discusses what is on the forefront of their mind. This podcast is longer than my others, coming in at around 60 minutes, which allows us to explore the week’s issues in depth.

In the inaugural episode we discuss the following subjects:

  1. Mike Volkov leads a discussion of the unintended consequences of the Yates Memo/Pilot Program for internal investigations. We explore the issue of “de-confliction” where the government asks a company to halt its own internal investigation for the government to be the first to interview witnesses. We explore de-confliction in the context of a requirement of cooperation to gain the benefits of the pilot program and how such a request from the Department of Justice (DOJ) could lead companies to be unable to disclose to other agencies or to shareholders and keep a Board in the dark about the alleged wrongdoing. What does this mean for the company and the internal investigator?

For Volkov’s post on conflicts of interest (COI) in internal investigations after the Yates Memo, click here.

  1. Matt Kelly leads a discussion on compliance and corporate governance. We explore the issue of compliance being involved in issues around pricing and sales in companies like Valeant and Wells Fargo. We discuss the role of compliance in areas outside of strict legal compliance but may move towards reputational risk, going into such areas as the new revenue recognition standards and executive compensation.

For Kelly’s blog post on the intersection of CEO pay and Chief Compliance Officers (CCOs), click here.

  1. Jonathan Armstrong leads a discussion of funding and the UK Serious Fraud Office (SFO), in the context of the recent announcement that the SFO has received additional or supplemental funding to investigate Unaoil. Why does the SFO need supplemental funding and how does it obtain it? What does all of this mean for the continued existence of the SFO in light of a former critic now being PM? Finally, Armstrong ties all of this into Brexit, his recent interview of Max Schrems and issues surrounding Privacy Shield.

For Armstrong’s interview with Max Schrems, click here and Cordery’s FAQs on Privacy Shield, click here.

  1. Jay Rosen takes us through the compliance conference scene. For those of you who are avid attenders of the various conferences, he discusses some of the key differences in the types observed, such as the nuts and bolts types (SCCE) and others which focus more on commentary (FCPA Blog NYC Conference). He discusses the relative strengths of each and how a compliance professional should think about selecting one or more to attend. He ends with his thoughts on why compliance certification is a plus (or minus).

For Rosen’s blog post Designing Your 2017 Ethics, Compliance & FCPA Conference Schedule, click here.

This new podcast Everything Compliance joins the four other podcasts I have on different aspects of compliance. The original FCPA Compliance and Ethics Report focuses on the nuts and bolts of compliance. Unfair and Unbalanced - is a podcast I do with SCCE CEO Roy Snell. In it we focus on wide ranging issues for the compliance profession. Compliance into the Weeds - is a podcast I do with Matt Kelly where we take a deep dive into the weeds of a compliance issue, typically technology, internal controls or GRC. We both indulge our inner geekiness in this podcast. Jay Rosen and I wrap up each week in FCPA, compliance and ethics with This Week in FCPA. All of these podcasts are available to you on my site, FCPAcompliancereport.comand are available on iTunes under the same name.

Nov 9, 2016

In this second part of a two-podcast series, taped live at SCCE’s 15th Annual Compliance & Ethics Institute, Roy and myself get a chance to interact with a live audience and bounce from topic to topic, discussing:

  • A hard look at whether compliance officers should be involved in setting the salary of CEOs;
  • Arnold Palmer and the culture of ethics;
  • How can we continue to encourage and celebrate ethical individuals?;
  • Whistleblowers and the first-time front-pay award, asking how much pain do the companies have to feel to stop encouraging unethical behavior?; and
  • Should compliance officers sit on the nomination committee and help choose the C-suite? The board?
Nov 8, 2016

In this podcast Matt Kelly and I take a deep dive into an area rarely discussed in the compliance space, namely budgeting. How should you think through the budgeting process; how does your company benchmark against its peer; how can you determine the proper amount of budget for your company's compliance department. We explore these and other questions on this podcast. For additional resources see Matt Kelly's blog post "Finding the Right Compliance Budget for You" on his site, radical compliance.com.

Nov 4, 2016

Show Notes for Episode 28, week ending November 4, 2016-the High Anxiety edition

 

  1. Assistant Attorney General Leslie R. Caldwell Delivers Remarks Highlighting FCPA Enforcement at GWU Law School, for a copy of her remarks click here;
  2. NYT article on China corruption crack down as it impacted GSK, for a copy of the NYT article click here;
  3. SEC Probes Wells Fargo, Bank Ups Legal Reserves Fund – The New York Times https://t.co/zt3nDlfuey;
  4. Tom Fox series on stakeholder engagement, for each article click for Part I, Part II and Part III; for podcast with Alison Taylor of BSR, click here;
  5. First FCPA Mock Trial Institute-for information and registration, click here; Best of all, for listens of this podcast you are entitled to a 50% discount off the regular price. To get this special rate of $350, you must enter promo code ‘FCP350’when registering online or give the promo code by phone.  Call 800-285-2221 or register online at shopABA.org/2016fcp.
  6. Cubs Win World Series
  7. The Jay Rosen Weekend Report
Nov 3, 2016

In this episode, I visit with Duke Law School Professor Samuel Buell about his book Capital Offenses-Business Crime and Punishment in America's Corporate Age. We explore some of his theories on why corporations are so difficult to prosecute, what corruptly means under the FCPA and his ideas on potential reforms. 

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