Corruption Crime & Compliance

Explore the stunning case of McKinsey & Company, which paid $122 million to resolve FCPA violations linked to bribery in South Africa. Delve into how senior partner Vikas Sagar orchestrated these payments to land lucrative contracts. Discover the significance of corporate compliance failures and the risks of engaging unscrupulous intermediaries. Learn about the lessons for companies to prevent corruption and ensure effective oversight in their operations.

What happens when a CEO leads a global bribery strategy? This podcast explores the scandal surrounding BIT Mining and its former CEO Zhengmin Pan, focusing on a $2 million scheme aimed at Japanese officials. The discussions highlight the tactics used to disguise bribes through fake contracts and dubious financial reporting. Listeners learn about the DOJ's charges against Pan, emphasizing the urgent need for corporate compliance and accountability in leadership. It's a hard-hitting look at the impact of executive misconduct.

Explore the shocking tale of a telecom giant caught in a web of bribery worth over $85 million. Discover how inflated contracts and shell companies masked illicit payments in Venezuela. Learn about the flaws in financial controls that allowed for such conduct to persist. Delve into the lessons on compliance, the importance of due diligence, and the role of third-party vetting. Hear insights on how to detect and prevent similar schemes in the future, ensuring better oversight and adherence to anti-corruption measures.

Explore how cultural differences shape the engagement with corporate codes of conduct. Discover surprising statistics, like the 35% of employees in the Netherlands who never consult their guidelines. Training impacts are highlighted, especially in China and India. A striking generational divide shows that Gen Z is more engaged than Baby Boomers. The discussion also touches on how hybrid work influences compliance and the discrepancies in perception between leadership levels. Tune in for unique insights that could reshape your approach to ethics!

What does the new Trump administration mean for ethics, compliance, and enforcement? As the dust settles on the U.S. election, companies are evaluating the implications of President Trump’s return to the White House. With priorities such as spurring economic growth, reducing inflation, imposing stringent trade sanctions, and reforming the Department of Justice, businesses must prepare for significant changes. How will these initiatives impact compliance programs and enforcement priorities?You’ll hear Michael discuss:Key enforcement priorities under the second Trump administration, including changes to DOJ oversight and trade compliance.The implications of aggressive foreign policy shifts, including potential changes to sanctions on Russia, Iran, and China.The focus on immigration enforcement, workplace audits, and I-9 compliance.The anticipated reduction in environmental and workplace safety enforcement.Trends in corporate criminal enforcement, including a steady focus on healthcare fraud but limited activity in other areas.Strategies for companies to enhance trade compliance and prepare for expanded tariffs and sanctions.ResourcesMichael Volkov on LinkedIn | TwitterThe Volkov Law Group

A major defense contractor faces serious consequences for ethics violations. The recent $950 million settlement with the U.S. Justice Department reveals a web of fraudulent pricing and conduct breaches. The discussion highlights critical lessons about corporate governance and accountability. Delve into Raytheon’s schemes around the Foreign Corrupt Practices Act and Arms Export Control regulations. The implications of this case underscore the need for robust compliance and a cultural shift in high-stakes industries.

The SEC recently settled a significant FCPA case, with a New York manufacturer paying $1.7 million due to bribery allegations in India. Key insights reveal how Moog's Indian subsidiary misused contractor services to influence tender processes. With employees resorting to deceptive schemes and third-party agents, the podcast highlights alarming compliance failures. The discussion emphasizes the vital importance of maintaining ethics in international business dealings, especially amidst regulatory scrutiny.

How does a respected financial institution turn into a criminal operation? In this episode of Corruption, Crime, and Compliance, host Michael Volkov dives into the record-breaking $3 billion settlement between TD Bank and the Department of Justice over pervasive violations of the Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) laws. Highlighting TD Bank's systemic failures, Michael explores how the bank's compliance and oversight lapses led to criminal conduct within its operations, making it a case study on the dangers of prioritizing growth over legal compliance. From failed AML programs to enabling money laundering on a massive scale, this episode sheds light on the regulatory crackdown TD Bank now faces.Hear him discuss: TD Bank’s $3 billion penalty sets a new high for banking compliance cases. In yet another reminder of the scope of Justice Department enforcement powers, and an important demonstration of the risks of non-compliance, the Justice Department and relevant banking agencies announced a $3 billion settlement with TD Bank companies to resolve systemic and pervasive Bank Secrecy Act ("BSA") and money laundering violations.TD Bank’s internal culture sidelined AML compliance, leading to massive oversights, including unmonitored transactions worth $18.3 trillion from 2018 to 2024. TD Bank enforced a “flat-cost paradigm,” restricting the compliance budget, which prevented updates and adaptations needed to meet new risk levels.TDBUSH pleaded guilty to causing TDBNA to fail to maintain an AML program that complies with the BSA and to fail to file accurate Currency Transaction Reports ("CTRs").Despite multiple warnings from internal audits and third-party consultants, the bank maintained its flawed AML protocols without significant action.TD Bank earned the ignominious record: TD Bank is the largest bank in U.S. history to plead guilty to Bank Secrecy Act program failures, and the first US bank in history to plead guilty to conspiracy to commit money laundering.   With this settlement, TD Bank joins a list of high-profile compliance failures alongside companies like Wells Fargo and Wirecard, furthering the call for financial institutions to prioritize ethical compliance in their growth models.ResourcesMichael Volkov on LinkedIn | TwitterThe Volkov Law Group

Discover how companies can elevate their compliance programs through internal site visits. Learn the importance of personal interviews to gauge compliance culture and operational risks. Explore the process of reviewing transactions and assessing training programs to ensure ethical standards are met. Hear about the significance of due diligence in vendor relationships and the evaluation of charitable contributions. Tune in for actionable insights that help foster a transparent and ethical workplace.

What happens when a single company dominates a crucial segment of the financial market? In this episode, Michael Volkov explores the Justice Department's recent antitrust lawsuit against Visa, highlighting allegations of monopolization and exclusionary practices in the debit card market. With Visa controlling over 60% of debit transactions in the U.S., the DOJ aims to restore competition and prevent further stifling of innovation in this vital financial sector. Tune in as Michael breaks down the case details, Visa’s strategic responses, and the implications for the broader financial landscape.Listen in as Michael discusses:The DOJ has charged Visa with monopolization and exclusionary conduct under Sections 1 and 2 of the Sherman Act.Visa holds over 60% of the U.S. debit transaction market, with MasterCard as its closest competitor at 25%.The complaint alleges Visa engages in exclusionary agreements that penalize banks and merchants for using alternative debit networks.The 2010 Durbin Amendment aimed to increase competition but has had minimal effect on Visa’s dominance, leading to ongoing scrutiny.Visa's strategies include partnering with potential competitors while leveraging significant market power to suppress competition.Following successes in technology sector enforcement, the DOJ is now expanding its scrutiny into financial markets, indicating a potential shift in antitrust enforcement dynamics.ResourcesMichael Volkov on LinkedIn | TwitterThe Volkov Law Group