Day: July 24, 2023

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The Ethics Experts

Episode 151 – Daniel Christmas

In this episode of The Ethics Experts, Nick welcomes Daniel P. Christmas. Daniel P. Christmas was appointed vice president and chief compliance officer in December 2021. In this role, Christmas is responsible for leading Corning’s Global Compliance organization, managing compliance policies and processes to ensure Corning’s Code of Conduct and Values are brought to life worldwide. He is also responsible for advising internal clients on a variety of compliance and regulatory areas, including government investigations, government contracts, and export controls and sanctions.

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FCPA Compliance Report

FCPA Compliance Report: Gordon Firemark – Defending Creative Rights: Protecting Podcasts from AI & GPT

Welcome to the award-winning FCPA Compliance Report, the longest running podcast in compliance. In this episode, Tom welcomes back the Lawyer to Podcasters – Gordon Firemark.

With the increasing prevalence of AI and Chat GPT technologies in the podcasting world, legal implications must be addressed. Tom and Gordon discuss potential legal issues, such as AI accessing private information and Chat GPT generating false information. To further this discussion, Firemark will be presenting at Podcast Movement 2023 on the importance of protecting freedom of expression in the arts. It is essential for creatives to understand their rights and obligations, as well as the potential impact of AI and Chat GPT on their work, to ensure they are fairly compensated for their creative efforts. This podcast episode provides valuable insight into the changing dynamics of the podcasting world and the need for creatives to remain informed.

Key Highlights

·      AI and Chat GPT

·      AI and Copyright Issues

·      Fair Compensation for Creatives

·      Legal Issues in Art

Resources

Gordon Firemark on LinkedIn

Firemark Law Firm

Tom Fox

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Facebook

YouTube

Twitter

LinkedIn

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All Things Investigations

All Things Investigations: Episode 32 – Update on Trump Indictment, Target Letter and Michigan Electors with Kenyen Brown and Kevin Carroll

Tom Fox and guests Kenyen Brown and Kevin Carroll take a deep dive into the legal drama surrounding President Trump. On this week’s episode of All Things Investigations their seasoned attorneys walk us through three major legal events that unfolded in a momentous week. They uncover the delicate balance of political and legal intrigue, explain court strategies, and reveal the ins and outs of the judicial process.

 

Kevin Carroll and Kenyen Brown are partners at Hughes Hubbard & Reed. Kevin served as a senior counsel to the House Homeland Security Committee. Kenyen is a former United State Attorney. 

You’ll hear Tom, Kenyen and Kevin discuss:

  • The surprising lack of preparation on President Trump’s defense team’s part. They were surprised by the lack of a structured legal argument and the pleading for a trial after the election.
  • Is there any merit to the defense’s claim that the amount of information to be reviewed necessitates a delay? Kenyen and Kevin agree that the defense might be asking for too long of a delay; however, they do not rule out a timeline extension due to the volume of documents involved.
  • Trump’s defense does not have a large legal team to sift through the discovery material.
  • They examine the defense strategy, in particular the call for the trial not to be held before the election. Such a privilege is not usually granted to typical defendants.
  • Kevin voices his concerns over the defense’s public statements, questioning the judge’s hesitance in issuing gag orders. Kenyen speculates that the choice of the federal district for this case could be strategic on the part of the Justice Department, aiming for a more credible verdict.
  • They discuss Trump’s announcement about receiving a target letter from Jack Smith, and its implications. They believe that it indicates that the Special Counsel believes there is already probable cause to indict Trump.
  • Tom wonders if Smith’s motivation was to pre-empt any indictment that might have been made by the state of Georgia.
  • Kevin speculates that the Justice Department might have been embarrassed by the January 6 Committee progressing far ahead of their investigation. He posits that it would be even more mortifying if a smaller District Attorney’s office managed to build a significant conspiracy and racketeering case against the President while the DOJ was lagging behind.
  • Kenyen emphasizes that justice should be their main focus and he would hope that the pace of Smith’s actions is determined by the facts and evidence he has, rather than being influenced by a state prosecutor’s progress.
  • Would the District of Columbia be an appropriate venue for a case involving the January 6 insurrection? Kevin believes so since most of the activity relating to January 6, including the preparation and the event itself, happened in DC.
  • Tom asks Kenyen and Kevin for their views on this matter of the recent announcement from the Attorney General of Michigan, who charged a series of persons claiming to be electors from Michigan but who were in fact fraudulent. 
  • Kevin finds it interesting that Federal Prosecutor Smith is also examining the fake elector scheme. He labels the indictment as apt and defines the false claims of electoral victory as fraudulent.
  • Kenyen remarks on the difficulties of prosecuting election fraud cases due to allegations of partisanship. He underlines the necessity to protect the integrity of the election system. 
  • Kevin discusses an incident in Michigan, where meetings were apparently recorded in which fake electors were selected.

 

KEY QUOTES

“I would hope that federal authorities are not motivated by what might be taking place in a parallel state jurisdiction. In other words, your master in these circumstances is supposed to be justice…” – Kenyen Brown

 

“Having investigated a few instances of election fraud cases in Alabama that ended up not being accurate or true, it’s almost a no win for the prosecutor because there are going to be allegations of partisanship regardless of the outcome of the merit of your case. Nonetheless, you do it to protect the integrity of the election system.” – Kenyen Brown

 

“The only thing worse than getting a target letter from the Justice Department is when everybody else who was involved in the crime, except you, didn’t get a target letter, they suggest that everybody’s cooperating against you.” – Kevin Carroll

 

“It’s super interesting because we all know that the federal Prosecutor Smith is also looking at the fake elector scheme because he specifically subpoenaed some individuals who were electors or state election officials in the different states that the results were in question legitimately or illegitimately. It’s a very apt indictment. It’s a fraud.” – Kevin Carroll

 

Resources

Hughes Hubbard & Reed website

Kevin Carroll on LinkedIn

Kenyen Brown on LinkedIn

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Daily Compliance News

Daily Compliance News: July 24, 2023 – The Struggling in China Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance brings to you compliance related stories to start your day. Sit back, enjoy a cup of morning coffee and listen in to the Daily Compliance News. All, from the Compliance Podcast Network. Each day we consider four stories from the business world, compliance, ethics, risk management, leadership or general interest for the compliance professional.

  • DOJ revamps Crypto enforcement team. (WSJ)
  • Altice co-founder denies corruption. (Reuters)
  • US consultancies struggle in China after raids. (FT)
  • GOP release FBI report showing no Biden corruption in Ukraine. (Bloomberg)
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Adventures in Compliance

Adventures in Compliance – Compliance Lessons from the Boscombe Valley Mystery

Welcome to a review of all the Sherlock Holmes stories which are collected in the work, “The Adventures of Sherlock Holmes.” The appeared in the Strand Magazine from July 1891 to June 1892. Over 12 episodes, I will be reviewing each story and mine them for leadership, compliance and ethical lessons. “The Boscombe Valley Mystery” was first published in the Strand Magazine in October 1891 and is included in the collection in the book ‘The Adventures of Sherlock Holmes’.

Summary

In this tale, Holmes and his companion Dr. Watson journey to Boscombe Valley in Herefordshire to investigate the murder of Charles McCarthy. Local law enforcement believes the man’s son, James McCarthy, is responsible for the crime as he was found near the crime scene with a distraught demeanor, and a heated argument between him and his father was witnessed earlier.

Despite the seeming clarity of the case, the younger McCarthy’s childhood sweetheart, Alice Turner, firmly believes in his innocence and urges Holmes to uncover the truth. Holmes, known for his keen observation and logical deduction, notices several key details that others have overlooked.

Holmes discovers a clue in the form of a dying message left by the elder McCarthy, consisting of the words “rat” and “a dying man”. Holmes deduces that the message actually refers to “Ballarat”, an Australian town, and “a dying woman”, which was misheard by the elder McCarthy in his weakened state.

Upon further investigation, Holmes finds out that both McCarthys and Turner’s father were involved in a shared past in Australia, specifically in the town of Ballarat. Turner’s father and McCarthy had been involved in a criminal enterprise, and Turner’s father owed McCarthy a debt of gratitude.

In the end, Holmes uncovers that it was Turner’s father who committed the murder, to protect Alice from being forcibly married to James McCarthy due to the elder McCarthy’s insistence. Turner’s father was the “dying woman”, his health already deteriorating due to a terminal illness.

Holmes lets Turner’s father confess his crime to the local police, who in turn, due to Turner’s illness and the extenuating circumstances, choose not to arrest him. James McCarthy is then released, cleared of the charges, and the case is concluded.

Compliance Lessons

1.         Importance of Complete Investigations: In the story, the local police are quick to arrest James McCarthy based on circumstantial evidence, not conducting a comprehensive investigation. In a compliance setting, it’s crucial to conduct thorough investigations before drawing conclusions. Rushing may lead to wrong decisions, causing reputational damage and legal consequences.

2.         Avoiding Assumptions and Bias: The police assume that because James McCarthy was found near his father’s dead body, he must be the killer. Assumptions and biases can lead to serious compliance violations. It’s crucial to base decisions on factual evidence and avoid personal prejudices.

3.         Consistency in Applying Rules and Regulations: Holmes shows consistency in his approach to solving mysteries, irrespective of who is involved. This is an important lesson for compliance – rules and regulations must be consistently applied regardless of the person or situation involved.

4.         Maintaining Confidentiality: Throughout the story, Sherlock Holmes maintains the confidentiality of his clients and their sensitive information. In compliance, safeguarding confidential information is paramount.

5.         Truth and Transparency: The story ends with the revelation of the truth, which is initially overlooked by those in charge of the investigation. This highlights the importance of transparency in all dealings and the pursuit of truth, even when it’s uncomfortable. Compliance programs should prioritize transparency and encourage the disclosure of truth.

6.         Adherence to Ethical Standards: Sherlock Holmes, even though he’s not a police officer, maintains high ethical standards while conducting his investigations. This is a crucial lesson for individuals in the compliance field. They should adhere to the highest ethical standards, regardless of their position or situation.

7.         Accountability and Justice: At the end of the story, the real killer is identified, and even though he escapes the traditional legal punishment due to his death, there’s a sense of justice served. In compliance, holding people accountable for their actions and ensuring justice is important.

Resources

The New Annotated Sherlock Holmes

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Corruption, Crime and Compliance

Cybersecurity and Compliance: The Growing Partnership of CISOs and CCOs

In today’s world data is the new gold, and protecting it has become imperative for businesses worldwide. On this week’s episode of Corruption, Crime and Compliance, Michael Volkov navigates the cybersecurity landscape, unpacking the key threats haunting businesses and the elements of a robust cybersecurity compliance program. He underscores the importance of proactively managing these digital threats, to ensure your business remains protected. 

You’ll hear him discuss:

  • The growing partnership between compliance and cybersecurity is a rapidly emerging issue in compliance, affecting companies and their risk management strategies. Cyber threats are not only external but also internal, resulting from employee behavior and cybersecurity hygiene.
  • Chief Information Security Officers (CISOs) are increasingly collaborating with Chief Compliance Officers (CCOs), leveraging the latter’s expertise in governance, risk management, and training. This collaboration enables better education and training for employees on cybersecurity risks and the importance of good cybersecurity hygiene.
  • Approximately 50% of cyber or data breaches are the result of internal actors, either intentionally or through negligence. Thus, CCOs can play a crucial role in designing controls, conducting training, and monitoring employee behavior to mitigate such risks.
  • Major cybersecurity risks today include ransomware, cloud security, work from home security, phishing schemes, supply chain security, and identity and access management (IAM). 
  • The rise of cyber threats: The digital landscape is rife with cybersecurity threats, including insider threats, DoS and DDoS attacks, AI and machine learning attacks, and cyber espionage.
  • Organizations need to be vigilant against disgruntled employees with access privileges who could intentionally or unintentionally harm systems. This emphasizes the need for robust access controls, regular monitoring, and comprehensive employee training.
  • While AI and machine learning can enhance cyber defenses, they can also be weaponized by cybercriminals to automate and scale their attacks. 
  • A robust cybersecurity compliance program is necessary to protect a company’s IT infrastructure and includes:
    • Application Security: Familiarity with cloud security policies and the implementation of multifactor controls and administration privileges can help strengthen application security.
    • Information Security: Companies must adhere to strict security standards and employ encryption among other strategies to protect data from possible breaches.
    • Disaster Recovery Planning: This requires implementing backup and recovery systems, incident response drills, and endpoint protections.
    • Network Security: Most companies use firewalls to monitor traffic for cyber threats and attacks. Companies must also secure their wireless networks and ensure that remote connections are encrypted.
    • End User Security: Since hackers often gain unauthorized access through endpoints, companies must ensure that devices are updated with security programs and antivirus applications.
    • Operational Security: This involves identifying any potential vulnerabilities that could be exploited by a hacker.
  • Given the prevalence of phishing attacks and insider threats, cyber training for employees is of paramount importance for an organization’s cybersecurity.

 

KEY QUOTES:

“To the extent that cyber risks are the result of internal employee misbehavior or negligence, CCOs are natural experts in developing strategies for controls, mitigation of risks, and monitoring employee behavior, because they’re already doing that to a certain extent with regard to other risks.” – Michael Volkov

 

“Businesses that misconfigure security settings for applications can result in cloud account data breaches. Companies that rely on major cloud services have to design their security settings for their applications.” – Michael Vokov

 

“In the end, cybersecurity fails when there’s a lack of adequate controls and security readiness, and companies have to make smart strategic decisions when developing their controls and cybersecurity protections; and always focus on the human element, common mistakes, effectiveness of controls and vulnerabilities to hacker strategies to exploit any weaknesses.” – Michael Volkov

 

Resources

Michael Volkov on LinkedIn | Twitter

The Volkov Law Group

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31 Days to More Effective Compliance Programs

One Month to More Effective Reporting and Investigations – Issues in Cross Border Investigations

In an article, entitled “Internal Investigations, How to Conduct an Anti-Corruption Investigation: Developing and Implementing the Investigation Plan”, Mara Senn, now Director & Senior Counsel, Global Compliance Investigations at Zimmer Biomet  and Michelle K. Albert, former lawyer at Arnold & Porter discussed cross-border investigations. They considered the following issues.
Offer interview translations.
Avoid cultural pitfalls.
Observe data privacy restrictions.
Comply with labor requirements.
Be aware of other local requirements.
Put forms in native translations.
Preserve the attorney-client privilege.
Prepare for local enforcement actions.
Prepare for security risks.
Protect whistleblowers.

Three key takeaways:

  1. Use translators and translations of key documents in witness interviews.
  2. Use local counsel to facilitate the investigation and to help navigate any local anti-corruption investigation issues.
  3. Never, never, never retaliate. The SEC will pay whistleblower bounties for non-U.S. citizens.