Corruption Crime & Compliance

Steele Compliance Solutions recently announced the global rollout of its new “Risk Intelligence Data” platform.  Companies are suffering from information overload -- with new technologies, companies can manage information to increase efficiency and accuracy in collecting and analyzing information needed for risk management purposes. Risk Intelligence Data, involves the hybridization of over 5 mill...

Amazon joins the exclusive club of high-tech OFAC violators.  Last year, Apple settled with OFAC for sanctions violations.  This year, we can add Amazon to the list of OFAC violators. On July 8, 2020, Amazon settled with OFAC for $134,523 for violations of multiple OFAC sanctions programs.  Amazon’s violations stemmed from deficiencies from its sanctions screening processes.  As a result, Amazon p...

The Supreme Court, in two important decisions issued on the last day of the Term, rejected Trump and DOJ challenges to a New York Criminal Grand Jury subpoena and several Congressional subpoenas for Trump's financial records. In a decisive ruling, in Trump v. Vance , the Supreme Court rejected by a 7-2 vote, President Trump’s challenges to a New York State grand jury subpoena.  In a separate case,...

On July 2, 2020, DOJ and the SEC issued revised FCPA Guidance.  The Revised Guidance continues to be a valuable document, which contains important discussions of relevant cases, DOJ and SEC policies, and enforcement principles relating to the FCPA. In this Episode, Tom Fox and Michael Volkov discuss the Revised FCPA Guidance and highlight important changes and trends.

Novartis is the new poster-child of corporate misconduct.  In the space of two weeks, Novartis settled domestic False Claims Act and Anti-Kickback violations for $729 million, and settled FCPA violations for foreign bribery for $337 million. In the domestic False Claims Act and AKS cases, Novartis resolved two separate cases: one for illegal payments made to three foundations used to pay for patie...

Notwithstanding the pandemic and remote working arrangements, the Securities and Exchange Commission is continuing to bring FCPA enforcement actions.  In its latest action, the SEC settled with Alexion Pharmaceuticals for $21 million for foreign bribery and books and records violations. In this Episode, Michael Volkov reviews the Alexion FCPA enforcement action and the lessons learned for complian...

Even during this difficult time of the pandemic, economic uncertainty and social unrest, the Justice Department and the SEC have concluded a major FCPA enforcement action. Novartis and Alcon (which was a Novartis subsidiary at the time of the misconduct) agreed to pay a total of $345 million in criminal and civil penalties.  Novartis spun off Alcon in 2019. Under the DOJ settlement, Novartis and A...

The Justice Department’s recent revisions to the Evaluation of Corporate Compliance Programs highlights an important trend and evolution of prosecution focus.  DOJ’s Revised Corporate Compliance Guidance recognized and reinforced the continuing focus on post-acquisition integration versus pre-acquisition due diligence.  For years, DOJ and compliance professionals placed significant emphasis on pre...

The Justice Department’s Antitrust Division recently announced the indictment in Colorado federal court of four executives from two chicken producer companies for participation in a long-running price-fixing and bid-rigging conspiracy in the sale of broiler chickens to grocers, fast-food companies and other sellers of chicken products. In this episode, Michael Volkov reviews the indictment, the fa...

The Department of Justice quietly issued revisions to its Corporate Compliance Program Guidance.  DOJ's revisions underscore important new trends in corporate compliance -- the importance of resources and empowerment, continuous monitoring, proactive strategies, access to and use of data, consistent discipline and new, training strategies. In this episode, Michael Volkov reviews DOJ's changes to i...

Paul Kruse, former CEO of Blue Bell Ice Cream, was recently charged with criminal charges stemming from the sale of contaminated ice cream, resulting in the death of three persons.  Kruse was aware of serious safety and contamination issues arising from the production of Blue Bell ice cream.  Notwithstanding his knowledge, Kruse ignored safety concerns and withheld critical information from its cu...

Boeing Airlines was the leader in safety and financial success.  Unfortunately, Boeing has suffered a significant fall from grace as a result of its 737 Max safety record and two devastating crashes in Indonesia and Ethiopia. The Boeing safety scandal has had a devastating impact on Boeing's performance and uncovered a corporate culture that has been obsessed with financial performance to the detr...

The Covid-19 pandemic has had a devastating impact on everyones' life.  Businesses have had to adjust rapidly to a new world, filled with significant healthy and safety risks, along with business survival and continuity issues.  Companies have reacted with crisis management strategies.  As part of this response, companies have to implement a new risk profile and allocate resources accordingly. In...

In a two-part series, Michael Volkov examines the continuing problem of identifying and mitigating beneficial ownership risks.  Money launderers and corrupt individuals continue to rely on corporate structures to disguise their ownership interests to further illicit schemes.  Companies have to develop strategies that practically address the risks without dedicating disproportionate resources to th...

In a two-part series, Michael Volkov examines the continuing problem of identifying and mitigating beneficial ownership risks.  Money launderers and corrupt individuals continue to rely on corporate structures to disguise their ownership interests to further illicit schemes.  Companies have to develop strategies that practically address the risks without dedicating disproportionate resources to th...

The Justice Department recently resolved two food safety criminal cases involving Blue Bell Ice Cream and Chipotle Mexican Grills.  In its largest food safety recovery to date, Chipotle agreed to a three-year deferred prosecution agreement and paid $25 million.  In the Blue Bell Ice Cream case, Blue Bell agreed to plead guilty and pay $19.5 million in fines and penalties.  Blue Bell's former CEO,...

Companies face new challenges in employee relations and promoting employee engagement in the COVID-19 pandemic era.  Companies have to ensure employee a safe workplace with appropriate modifications to mitigate COVID-19 risks.  At the same time, companies have to reinforce the importance of reporting employee concerns, and respond to these concerns in a prompt and reliable manner. In this episode,...

Despite the COVID-19 pandemic, the SEC entered into a settlement with Eni for $24.5 million for FCPA violations.  In another matter, the SEC filed an FCPA case against a former Goldman Sachs executive for bribery in connection with business on behalf of a client in Ghana. In this episode, Michael Volkov reviews these two enforcement actions.

The Justice Department and the FBI have quickly acted to focus on fraudsters and hoarders who are preying on the public panic in response to the pandemic. DOJ has focused on new fraud schemes promising miracle cures and other means to take advantage of the public on the Internet.  At the same time, DOJ and the FBI have targeted hoarders of critical medical supplies who are attempting to price goug...

Judge Stanley Sporkin, a mentor, friend and professional colleague, died at age 88 on March 23, 2020. In a personal tribute to Judge Sporkin, I recount Judge Sporkin's career and some recollections of my relationship with him.

COVID-19 has had a devastating impact.  The public health crisis has caused tragic human loss and is overwhelming the United States healthcare system.  Businesses have suffered along with the public. Business face real challenges managing the crisis, their respective supply chains and employees. In the second part of a two-part series, Mike Volkov reviews important business responses and strategie...

COVID-19 has had a devastating impact.  The public health crisis has caused tragic human loss and is overwhelming the United States healthcare system.  Businesses have suffered along with the public. The lack of federal leadership has been glaring.  States and local governments are coping the best they can despite the obvious absence of federal leadership. In this two-part episode -- the second pa...

Companies need to review and enhance their antitrust compliance programs, especially those companies with tangible antitrust risks. In designing an effective antitrust compliance program, there are five key elements to an antitrust compliance program: (1) Risk Assessment;  (2) Culture and Senior Management Buy-In; (3) Monitoring and Testing; (4) Training; and (5) Speak Up and Reporting Systems. In...

An effective third-party risk management program has to include robust monitoring and auditing strategies.  This episode is a companion to Episode 129 on creating a third-party risk profile. In this episode, Michael Volkov outlines strategies for monitoring and auditing your third-party population.

The Treasury Department's Office of Foreign Asset Control ("OFAC") is aggressively enforcing OFAC sanctions rules.  Last year, OFAC issued its Framework for Sanctions Compliance Programs, which includes a specific requirement for companies to conduct a "holistic" risk assessment. In this episode, Michael Volkov outlines practical strategies for conducting a sanctions risk assessment.