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Compliance Tip of the Day

Compliance Tip of the Day: TD Bank Lessons Learned: The Board and It’s Duty of Oversight

Welcome to “Compliance Tip of the Day,” the podcast where we bring you daily insights and practical advice on navigating the ever-evolving landscape of compliance and regulatory requirements.

Whether you’re a seasoned compliance professional or just starting your journey, our aim is to provide you with bite-sized, actionable tips to help you stay on top of your compliance game.

Join us as we explore the latest industry trends, share best practices, and demystify complex compliance issues to keep your organization on the right side of the law.

Tune in daily for your dose of compliance wisdom, and let’s make compliance a little less daunting, one tip at a time.

Under the Caremark Doctrine, the Board of Directors has clear duties not to put their head in the sand and engage in conscious indifference.

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The Corruption Files

The Corruption Files: Unmasking Crazy Eddie: Corporate Governance Gone Wrong

What is stranger than fiction? The stories of worldwide corruption. In this podcast series, co-hosts Tom Fox, the Voice of Compliance and Mike DeBernardis, partner at Hughes Hubbard, discuss some of the most audacious corruption cases in anti-corruption enforcement. More importantly, they will discuss the lessons learned on what your organization can do to prevent running afoul of international anti-bribery laws.

In this episode of Season 2, Tom and Mike explore the infamous Crazy Eddie scandal, one of the most audacious corporate frauds in history.

The scheme, orchestrated by Eddie Antar and his family during the 1980s and 1990s, involved tax evasion, inventory inflation, and money laundering through a method known as the ‘Panama Pump.’ They defrauded various stakeholders, including customers, bankers, investors, and governmental bodies, ultimately leading to Eddie’s extradition from Israel and imprisonment. This episode dissects the scandal’s rapid unraveling post-IPO, focusing on flawed corporate governance and oversight. By examining the pitfalls of family-controlled businesses and the lack of transparency exemplified by the Crazy Eddie and Boar’s Head Listeria scandals, the hosts underscore the critical importance of checks and balances in corporate structures.

Key Highlights:

  • The Audacious Fraud of Crazy Eddie
  • Tax Evasion and Inventory Inflation
  • The Panama Pump Scheme
  • The Whistleblower: Sam Antar
  • Lessons in Corporate Governance

Resources:

Mike DeBernardis on LinkedIn

HughesHubbardReed

Tom Fox

Instagram

Facebook

YouTube

Twitter

LinkedIn

Categories
Everything Compliance

Everything Compliance: Episode 143, The North to South Episode

Welcome to the only roundtable podcast in compliance as we celebrate our second century of shows.

In this episode, we have the quartet of Matt Kelly, Jonathan Marks, and Karen Moore; with host Tom Fox wearing a double hat as a commentator as well. We take up Root Cause Analysis, DEI questions in the Boeing monitorship, failures at TD Bank and a possible Caremark claim.

1. Matt Kelly takes a look into the commercial strategies which led to the compliance failures at TD Banks.  He rants about the Boston’s National Women’s Soccer League team (now deleted) advertising campaign announcing the new team with the tagline ‘too many balls’.

2. Jonathan Marks explains the differences in a Root Cause Analysis and investigations. He shouts out the WNBA and the person who solved the Golden Owl puzzle.

3. Karen Moore takes a deep dive into the district court’s request for more information on the impact of DEI on the Boeing monitorship. She rants about non-civility in the Supermarkets of America’s Parking Lots.

4. Tom Fox takes a look at the potential Caremark claim against TD Bank for both Directors and Officers failures in their duties. He shouts out to GOP dominated Texas Legislature for subpoenaing Robert Roberson for an appearance before the House, one day before his scheduled execution and the Texas Supreme Court for staying his execution until he could appear.

The members of the Everything Compliance are:

The host and producer, rantor (and sometime panelist) of Everything Compliance is Tom Fox the Voice of Compliance. He can be reached at tfox@tfoxlaw.com. Everything Compliance is a part of the award-winning Compliance Podcast Network.

Additional Resources:

1.     Jonathan Marks on Root Cause Analysis on LinkedIn.

2.     Matt Kelly on TD Bank’s Enforcement Action on Radical Compliance.

3.     Tom Fox on the potential Caremark claims in the TD Bank case on the Compliance Podcast Network blog.

 

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Rotary Voices of Kerrville

Rotary Voices of Kerrville: Community Involvement and Leadership with Dr. Robert Templeton

Welcome to Rotary Voices of Kerrville, the podcast series that shines a spotlight on the Rotary Club of Kerrville, Texas—a club with a rich history of community service, leadership, and dedication. For nearly 100 years, the Rotary Club of Kerrville has been at the heart of initiatives that make a real difference, both locally and globally. Through this podcast, we’ll be exploring the club’s incredible projects, hearing from its inspiring members, and learning about the values that drive their commitment to “Service Above Self.”

In this episode, host Tom Fox visits Dr. Robert ‘Bobby’ Templeton, superintendent of Ingram ISD, to discuss the importance of community involvement and leadership.

Dr. Templeton emphasizes the need for leaders to actively engage in their communities, setting an example for students and teachers through actions such as participating in local events and projects. He shares his long-term commitment to Rotary, which he joined 18 years ago, and highlights the organization’s community and global service work, particularly their efforts to eradicate polio. Dr. Templeton connects Rotary’s large-scale ambitions to his school district’s own focus on ending generational poverty, underscoring the significance of Big Hairy Audacious Goals in creating meaningful change. The conversation also touches upon the pressing issue of school safety, reflecting on recent events and the responsibility of schools to protect their students.

Highlights Include:

  • Community Involvement and Leadership
  • Rotary Club Experience
  • Big Goals and Global Impact
  • Personal Connections and Projects

Resources:

Rotary Club of Kerrville

Rotary District 5840

Rotary International

Categories
Daily Compliance News

Daily Compliance News: October 24, 2024 – The Quid Pro Quo Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings you compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee, and listen 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.

In today’s edition of Daily Compliance News:

  • The Quid Pro Quo-Judge Aileen Cannon is on Trump’s short list to be AG. (ABC)
  • Peru’s ex-President gets 20 years for corruption. (NPR)
  • Open AI hires its first E&C chief. (Bloomberg)
  • Charges dropped against Tigran Gambaryan in Nigeria. (Wired)

Categories
It's art

It’s Art, Let’s Talk About It: Texas Aesthetic: Sculpture and Painting Exhibitions at The Museum of Western Art

The Museum of Western Art is dedicated to excellence in collecting, preserving, and promoting Western Heritage and our diverse audiences’ education and cultural enrichment. The Museum serves as a bridge between the past and the present, ensuring that the legacy of the American West will be preserved for the future. Western Art is as engaging and important as ever.

Producer Tom Fox interviews Museum Executive Director Darrell Beauchamp while behind the guest microphone in this award-winning podcast series. They delve into the Museum’s recent, current, and upcoming shows, providing a unique educational experience for art enthusiasts.

They highlight the impact of recent shows featuring renowned artists Scott Christensen and Quang Ho. Their conversation also delves into Al Glann’s unique sculptural approach, which utilizes negative space in his metalwork. Additionally, the episode covers future exhibitions, including a pop-up show featuring Kevin MacPherson, and emphasizes the Museum’s role in community engagement and promotion of the arts.

Highlights Include:

  • Dynamic Negative Space Sculptures by Al Glann
  • Spotlighting Renowned Artists in It’s Art, Let’s Talk About It
  • Artistic Showcase: Unique Museum Exhibition Collaborations
  • Texas Aesthetic: Sculptures and Paintings Exhibition
  • Wildlife Photography Exhibition by Rachel Spencer

Memorable Quotes

“His work is sculpture, but it’s negative space sculpture in that you look at it and, well, that horse’s ribcage isn’t complete. You know, it’s just, it’s. But your negative space allows it, you know, to fill in.” Darrell Beauchamp

“Well, you talk about the passion. I was unfamiliar with both of those artists. But I saw that passion in their work.” – Tom Fox

“It’s a beautiful way of looking at, how do you get action and how do you get emotion from a piece of sculpture when it’s not all there? The negative space, especially since he works in a lot of primary colors that works in brighten reds and yellows and blues, and, and it’s, it’s just a step away from all that tradition enough.” – Darrell Beauchamp

Resources:

Museum of Western Art

Darrell Beauchamp on LinkedIn

Categories
Business Integrity Innovations

Business Integrity Innovations: Promoting Transparency: Bridging the Trust Deficit in Business – Odeh Friday

The Compliance Podcast Network (CPN) and the Center for International Private Enterprise (CIPE) are bringing you Business Integrity Innovations. This podcast is inspired by Ethics 1st, a multi-stakeholder initiative led by CIPE that creates pathways for accountable and sustainable investment in Africa. Companies can use Ethics 1st to standardize their business practices, develop sound corporate governance systems, and demonstrate their commitment to compliance and business ethics.

In this episode, Tom and Michele Crymes visit with Odeh Friday, Country Director, Nigeria for the Accountability Lab. Their discussion emphasizes the importance of maintaining integrity and transparency in business to promote accountability. Trust and ethical standards in business dealings are crucial for building trust with stakeholders and the broader community. The trust deficit within the private sector highlights the need for ethical behavior. The conversation also touches on ongoing collaborations with state governments on procurement processes, including initiatives like open contracting to ensure better accountability. However, they identified a need to shift focus from merely holding the government accountable to encouraging ethical practices within business communities.

Key Highlights:

  • The Role of Trust and Integrity in Business
  • Collaborating with State Government on Procurement
  • Challenges in Community and Business Ethics

Resources

Odeh Friday

Odeh Friday on Linkedin

The Accountability Lab-Nigeria

CIPE

CIPE

Ethics 1st

Categories
Blog

Branding Lessons from Bela Lugosi’s Count Dracula for the Modern Compliance Professional

Ed. Note: This week, leading up to Halloween, I will examine lessons for compliance professionals through the lens of the great Universal Movie Monsters: Frankenstein, Wolfman, Dracula, and The Mummy. Today, we consider Bela Lugosi’s film version of Dracula. 

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When we think about the iconic portrayal of Count Dracula, it is almost impossible to picture anyone but Bela Lugosi in his 1931 film role. His elegant, mysterious demeanor and commanding presence defined the image of Dracula for generations. But what does this classic portrayal of a vampire do with corporate compliance? More than you might think.

Branding in the corporate world is often reduced to logos and taglines, but a deeper dive reveals that branding is much more about perception, reputation, and the story you tell—and in that sense, Count Dracula is a case study in strategic brand management. As compliance professionals, we can draw several important lessons from Lugosi’s Dracula to help us think more strategically about how we build and maintain the reputation of our companies, especially in today’s dynamic regulatory environment. Let’s sink our teeth into some of these branding lessons.

Consistency in Presentation is Key

From the moment Bela Lugosi first appears onscreen as Dracula, his image is unmistakable: the sleek, black cape, the formal attire, the slicked-back hair. He is always meticulously dressed and composed. This consistent visual representation became Dracula’s calling card, which is why he is recognized globally, even by those who have never seen the film.

In the corporate world, consistency in branding is just as essential. A company’s branding must be coherent and uniform across all platforms, whether marketing materials, social media, or internal communications. This does not just apply to the visual aspects but also to the tone, messaging, culture, and values that the company communicates.

For compliance professionals, this lesson reminds us that consistency builds trust. A company that is inconsistent in its messaging or approach to compliance, one-day promoting ethical behavior while the next quietly allowing questionable practices, sends mixed signals to employees, stakeholders, and regulators. Maintaining a clear and consistent message about a culture of compliance not only builds credibility but also helps shape a corporate culture where ethics and integrity are central.

A Strong Brand Requires Attention to Detail

Lugosi’s Dracula is memorable not just for the sweeping cape or chilling stare but also for the subtleties of his performance: the deliberate pace of his speech and the way he uses his eyes to convey menace. Every detail contributes to the impression that Dracula is sophisticated and dangerous.

Branding is no different. Every touchpoint and every interaction with your brand contributes to the overall perception. From how your team members answer the phone to the layout of your website, these seemingly small details add up to create a cohesive brand image.

For compliance professionals, the details matter. A robust compliance program requires meticulous attention to detail, from the language used in your Code of Conduct to the reporting mechanisms available for employees to raise concerns. Every part of the program must work harmoniously to present a clear and coherent message: compliance is not just a checkbox but an integral part of your company’s identity.

Create a Memorable Experience

When audiences see Lugosi’s Dracula for the first time, they do not just see a movie; they experience it. The chilling atmosphere, the tension-filled interactions, and the eerie soundtrack all combined to create a sense of dread long after the credits rolled. Dracula wasn’t just another movie; it was an unforgettable experience.

In corporate branding, creating memorable experiences for your audience is essential. Whether it is customers, employees, or regulators, the way people experience your company will shape their perception of your brand. This goes beyond products or services; it creates a culture and environment where people feel respected, valued, and heard.

For compliance teams, this can mean creating engaging and thought-provoking training sessions, not just rote exercises. It means fostering a workplace environment where employees feel empowered to speak up without fear of retaliation. Just as Dracula left a lasting impression on audiences, compliance leaders should strive to leave a positive and lasting impression on employees and stakeholders, reinforcing the importance of ethical behavior.

Adaptation and Reinvention

Though Lugosi’s portrayal of Dracula is the most iconic, the character has been reimagined countless times over the decades. The essence of Dracula as a mysterious, powerful figure remains constant, but each new version of the character is adapted to fit the time period and audience. This adaptability is key to Dracula’s enduring appeal.

Corporate branding, too, must be adaptable. Your brand’s core values—integrity, excellence, responsibility, and a culture of compliance—should remain constant, but the way you communicate those values must evolve with the times. As consumer expectations, technology, and regulatory landscapes shift, so must your branding approach.

For compliance professionals, this means staying ahead of the curve. Compliance programs cannot be static; they must evolve to meet new regulations, new risks, and new business realities. Just as Dracula has been reinvented to remain relevant to new generations of audiences, compliance programs must be continually updated and refined to remain effective and aligned with current expectations.

The Power of Reputation

Dracula’s reputation precedes him. Long before he appears on screen, the audience knows he’s a dangerous figure to be feared. This reputation enhances his power; he is already feared and respected without having to do anything.

In the corporate world, reputation is everything. Your brand’s reputation is its most valuable asset, and it must be protected at all costs. One scandal and a misstep can undo years of hard work in building a positive brand image.

Protecting the company’s reputation is a central part of the job for compliance professionals. A strong compliance program is not just about avoiding fines and penalties but also safeguarding the company’s reputation. This involves ensuring that the company complies with all regulations and fostering a culture where employees understand the importance of acting ethically and with integrity. Reputation, like Dracula’s presence, is powerful; it can either elevate or destroy a company.

Control the Narrative

Count Dracula controls how others perceive him; he is always in command of the narrative, whether by charm, intimidation, or deception. Lugosi’s Dracula exudes a controlled power that clarifies that he is always one step ahead of his opponents.

In corporate branding, controlling the narrative is critical. This doesn’t mean manipulating facts or engaging in deception but rather ensuring that your company’s story is told clearly, positively, and authentically. Companies need to proactively shape how they are perceived by the public, regulators, and their own employees.

For compliance teams, controlling the narrative is especially important in times of crisis. How you respond can make all the difference when something goes wrong, whether it is a data breach, an ethics scandal, or a regulatory violation. Compliance leaders should be prepared with a clear communication plan during crises, ensuring transparency, accountability, and a commitment to rectifying any issues.

Building a Brand that Endures

Bela Lugosi’s Dracula remains iconic nearly a century after his first appearance. His lasting legacy is a testament to the power of strategic branding. For compliance professionals, the lessons are clear: build a consistent, detail-oriented, adaptable, and trustworthy brand. As Dracula’s reputation continues to influence modern pop culture, how your company approaches compliance will shape its reputation for years.

By learning from Count Dracula’s branding playbook, compliance professionals can help their companies survive and thrive in an increasingly complex and competitive business environment.

Join us tomorrow as we consider the need to assess and manage new and emerging risks through the lens of The Creature from the Black Lagoon.