Corruption Crime & Compliance

The Biden Administration announced its commitment to the global battle against corruption as a new, national security issue. This policy represents a significant transformation in the U.S. commitment to the battle against corruption.In this Episode, Scott Greytak from Transparency International USA joins us to discuss the current policy initiatives surrounding the global commitment to fight corruption.

The Justice Department’s Antitrust Division has targeted collusion in labor markets for criminal prosecution. This was not unexpected. Indeed, the Antitrust Division gave plenty of warning to the high-tech industry and other companies that criminal prosecutions were on the horizon.DOJ handled initial prosecutions of labor market collusion in the high-tech sector by civil prosecutions and resolutions. Out of an abundance of caution, DOJ recognized that it wanted to provide “fair warning” of its intention. While it may not have been clear that the Sherman Act prohibition on cartel activity applied to labor markets, DOJ and the private sector should have realized that collusion, wage-fixing and agreements not to compete were illegal collusion agreements. It is hard (if not impossible) to identify procompetitive justifications for such blatant anti-competitive conduct. In this Episode, Michael Volkov outlines antitrust risks and compliance strategies to avoid DOJ enforcement actions in the labor market.

In a pair of enforcement actions, OFAC settled two separate actions involving Schlumberger Limited subsidiaries – the first involving Cameron International Corporation, and the second, Schlumberger Rod Lift, Inc., a former subsidiary, that was acquired by Lufkin Rod Lift, Inc.In this Episode, MIchael Volkov reviews the two OFAC enforcement actions.

WPP, the Largest Global Advertising Group, Settles FCPA Charges with SEC for $19.2 Million. After a long hiatus, the SEC announced a settlement with WPP plc, the world’s largest advertising group, for FCPA violations in India, China, Brazil and Peru for $19.2 million. The SEC’s resolution charges WPP with violations of the anti-bribery, books and records and internal accounting controls provisions of the FCPA.In this Episode, Michael Volkov reviews the WPP SEC FCPA settlement.

An internal investigation is like reading a good novel. You begin the journey with a general expectation of what the novel or the “investigation” is about. As you learn more, the investigation gains momentum filled with moments of discovery, surprise and ultimately a basis for understanding.In some cases, the end of the story (e.g. an oil well explosion) or dramatic event is known. In others, for example, a hotline report of alleged misconduct is substantiated after a thorough investigation involving a slow but steady understanding of what occurred, who was involved and how the scheme was executed.In this Episode, Michael Volkov reviews the 5 common pitfalls in conducting an internal investigation.

The Department of Treasury's Office of Foreign Asset Control ("OFAC") continues to bring sanctions enforcement actions. At the same time, OFAC is reiterating the importance of sanctions compliance program. Building on its May 2019 Framework for Sanctions Compliance Program, OFAC is sticking to its word -- setting forth sanctions compliance program requirements and holding companies accountable for sanctions program violations.In this Episode, Michael Volkov reviews recent enforcement actions, expanded Belarus sanctions, and continuing compliance expectations.

Chief compliance officers recognize the importance of conducting robust audits of their compliance programs. The audit process requires a delicate balance between qualitative and quantitative measures. As corporate compliance programs build data analytics and technological capabilities, CCOs have to tailor the audit program to incorporate data as an effective measure of a compliance program. In this Episode, Michael Volkov reviews strategies for conducting compliance program audits.

The culture bandwagon is picking up steam.  Everyone is citing its organization’s “culture” as the foundation for its activities in the hope of meeting a rapidly evolving standard for organizations.  In its latest corporate compliance guidance, the Justice Department, along with numerous regulatory agencies continue to cite the importance of a company’s  “culture of compliance.” But when it comes to defining the terms, how to manage a company’s culture and how to measure, monitor and measure a company’s culture – everyone responds with a blank stare.  That is when we hear the Justice Potter Stewart famous definition of obscenity, “I know it when I see it.” To provide my own perspective on some of these issues, I am dedicating this podcast episode to corporate culture.  My answers may not be “correct” or even “persuasive,” but the dialogue has to begin.  I have long advocated for practical approaches to defining, managing and maintaining a company’s culture.  As I often write, culture is a company’s most important “internal control.”  

LRN recently issued its second of three annual reports on ethics and compliance program effectiveness.  The second report focuses on board engagement with ethics and compliance and lessons learned from the COVID-19 pandemic. David Greenberg, a Special Advisor to LRN, joins us to discuss the interesting results of the LRN report.   The LRN report can be downloaded at https://lrn.com/  

In two separate enforcement actions, OFAC announced settlements with Alfa Laval Middle East Ltd., a Dubai, UAE company (AL Middle East), and Alfa Laval, Inc., a Virginia-based company (AL US) for violations of OFAC’s Iran Sanctions Program. AL US enlisted its then subsidiary (now operating unit), Alfa Laval Tank, Inc, based in Exton, Pennsylvania (AL Tank), to participate in the scheme. The Alfa Laval enforcement action underscores the dangers for global companies in compliance with US-based sanctions programs as part of global operations.  The parent company, Alfa Laval AB is based in Sweden (AL Sweden). AL Middle East agreed to pay OFAC $415,695, and AL US agreed to pay OFAC $16,875. In this Episode, MIchael Volkov reviews the OFAC enforcement action and points out interesting aspects and trends.