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AI Today in 5

AI Today in 5: August 19, 2026, The Failing Safeguards Edition

Welcome to AI Today in 5, the newest addition to the Compliance Podcast Network. Each day, Tom Fox will bring you 5 stories about AI to start your day. Sit back, enjoy a cup of morning coffee, and listen in to AI Today in 5. All from the Compliance Podcast Network. Each day, we consider five stories from the business world on compliance, ethics, risk management, leadership, or general interest in AI.

Top AI stories include:

  1. How AI is changing communications compliance. (UC Today)
  2. How financial institutions can use LLMs. (FinTechMagazine)
  3. The future of enterprise AI sovereignty. (TechTarget)
  4. AI reliability. (ESGDive)
  5. AI breaches show AI falling short on safeguards. (FT)

For more information on using AI in compliance programs, Tom Fox’s new book, Upping Your Game, is available. You can purchase a copy of the book on ⁠Amazon.com⁠.

To learn about the intersection of Sherlock Holmes and the modern compliance professional, check out Tom’s latest book, The Game is Afoot-What Sherlock Holmes Teaches About Risk, Ethics and Investigations on ⁠Amazon.com⁠.

Categories
The Hill Country Podcast

Hill Country Podcast: Mason County – the Hill Country’s Best Kept Secret

Welcome to award-winning The Hill Country Podcast. The Texas Hill Country is one of the most beautiful places on earth. In this podcast, Revitalizing Mason County: Chamber Leadership, Local History, and Community Events. This podcast is a cross-post with the Hill Country Hustlers. Our guest today is Taylor Krull, executive director of the Mason County Chamber of Commerce,

Taylor Krull brings both fresh leadership and a deep commitment to helping Mason County thrive as a small rural community. She sees the chamber as a vital “pillar” that stabilizes the town by supporting local businesses, helping new and home-based owners gain visibility, and strengthening the power of word of mouth. Krull also believes community promotion should protect Mason’s County and Mason’s small-town charm by building partnerships with nearby chambers while keeping local identity at the center. Through events, business support, and regional collaboration, she wants Mason and the surrounding area to keep the momentum that has made the town feel “alive again.”

Key Highlights

  • Mason County, the Hidden Gem in the Scenic Hill Country
  • Fort Mason’s burnt courthouse and blue topaz
  • Quarterly Mixers, Lunch Learns, and Festival Events
  • Spring Street Collective’s Live Music and Comedy Stage
  • Helping Small Town Businesses Get the Word Out

 

Resources

Taylor Krull on LinkedIn

Mason County Chamber of Commerce

 

Other Hill Country Focused Podcasts

Hill Country Authors Podcast

Hill Country Artists Podcast

Texas Hill Country Podcast Network

Cover Art

Nancy Huffman

Categories
Compliance Into the Weeds

Compliance into the Weeds: Compliance Implications of DOJ’s New Fraud Division and McDonald Memo

The award-winning Compliance into the Weeds is the only weekly podcast that takes a deep dive into compliance-related topics, literally going into the weeds to explore them in greater depth and uncover hard-hitting insights. Look no further than Compliance into the Weeds! In this episode of Compliance into the Weeds, Tom Fox and Matt Kelly discuss the DOJ’s “McDonald Memo.”

This DOJ Memo outlines a new Trump administration fraud division that broadly claims jurisdiction over “all types of fraud,” potentially reshaping DOJ enforcement and creating uncertainty about overlapping authority with existing divisions (e.g., antitrust). They review five priority areas: a. public trust/financial integrity fraud (procurement, bid rigging, grants, social welfare), b. healthcare fraud, c. internal revenue fraud, d. global trade and commerce fraud (tariffs/customs), and e. an undefined “corporate misconduct” category. From a compliance perspective, they urge companies to reassess risk areas (healthcare, importers, and government contractors), strengthen third-party oversight and documentation, and “pressure test” compliance programs with transparency and recordkeeping. They also warn that politicized enforcement and unclear guidance—such as on cartel-related liability—complicate compliance strategy and may tempt leaders to treat settlements as a cost of doing business.

Key highlights:

  • McDonald Memo Overview
  • Fraud Division Scope and Uncertainty
  • Five Fraud Categories Explained
  • Corporate Misconduct Questions
  • Compliance Program Impacts
  • Documentation as Defense
  • Mexico Cartels and Strict Liability

Resources

Matt in Radical Compliance

Tom

Instagram

Facebook

YouTube

Twitter

LinkedIn

A multi-award-winning podcast, Compliance into the Weeds was most recently honored as one of the Top 25 Regulatory Compliance Podcasts, a ⁠Top 10 Business Law Podcast⁠, and ⁠a Top 12 Risk Management Podcast⁠. Compliance into the Weeds has received Davey, Communicator, and W3 Awards, all for podcast excellence. 

Categories
Daily Compliance News

Daily Compliance News: August 19, 2026, The Avoiding Caremark 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 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.

Top stories include:

  • Boeing directors avoid Caremark claim over door blowout. (Bloomberg)
  • Why do BODs keep giving senior execs more chances? (WSJ)
  • States seek over $200bn from Meta for children’s social media addiction. (NYT)
  • ABC sues FCC for its illegal acts. (Reuters)

To learn about the intersection of Sherlock Holmes and the modern compliance professional, check out Tom’s latest book, The Game is Afoot-What Sherlock Holmes Teaches About Risk, Ethics and Investigations on Amazon.com.

Categories
Blog

Ted Lasso Week: Part 3 – Nate Shelley: When an Employee Becomes a Culture Risk

Season 4 of Ted Lasso is out. Matt Kelly reposted a blog he wrote during the original run of the series and he and I did a deeper dive into the show and its popularity for compliance professional in an episode of Compliance into the Weeds. I decided to take a deep dive into five of the characters in the show and use them to explore compliance topics. Over five blogs posts I have considered Manager Ted Lasso, owner Rebecca Welton, will consider player and later coach Roy Kent and social media influencer Keely Jones. Today in Part 3, we consider the professional journey of Nate Shelly, who begins the series as the equipment manager or in football parlance the ‘kit man’ but rises into the managerial ranks.

In Part Two Rebecca Welton showed how concentrated authority can turn an executive’s private grievance into organizational misconduct. Nate Shelley presents a different risk. His damage begins below the executive level, after AFC Richmond promotes a technically gifted employee without preparing him to exercise power.

Nate is not a villain. He is the overlooked kit man whom players ridicule and leaders barely notice. Ted recognizes his tactical ability, Roy stops the bullying, and Richmond promotes him. Yet the organization mistakes recognition for readiness. Once Nate receives authority, the humiliation he experienced does not disappear. He redirects it toward people with less power.

For compliance professionals, Nate’s story demonstrates that culture risk can emerge when organizations reward expertise, overlook behavioral warning signs, fail to adequately train and then fail to monitor new managers.

Promotion Changes the Risk Profile

In “Trent Crimm: The Independent” (Season 1, Episode 3), Jamie Tartt and other players bully Nate until Roy intervenes. Ted also invites Nate to contribute tactical ideas. Those decisions establish dignity and psychological safety for an employee who had neither.

By “The Hope That Kills You” (Season 1, Episode 10), Nate has been promoted to assistant coach. The promotion is understandable. He knows football, sees patterns others miss, and has already helped the team. What Richmond never appears to assess is whether he can supervise people, receive criticism, manage conflict, protect confidential information, or use authority consistently. This is a common corporate failure. The strongest engineer becomes an engineering manager. The top salesperson becomes a regional leader. The best investigator becomes an investigations director. Technical performance is treated as proof of leadership capacity.

Section 8B2.1 of the 2025 U.S. Sentencing Guidelines requires reasonable efforts concerning the selection of personnel with substantial authority, practical training based on role and responsibility, monitoring, and consistent discipline. An effective promotion process should assess conduct, not merely output. It should also include manager training, defined escalation duties, coaching, and a meaningful review period.

Richmond changes Nate’s title. It does not build the controls that should accompany his new power.

The Bullied Employee Becomes the Bullying Manager

Nate’s deterioration becomes unmistakable in “The Signal” and “Headspace” (Season 2, Episodes 6 and 7). Public praise for his tactical decision produces the “Wonder Kid” identity he craves. He also belittles Colin Hughes and directs increasingly harsh treatment at Will, the young employee who replaced him as kit man. Coach Beard witnesses Nate humiliating Colin and tells him to do better. Nate then delivers a public apology. Yet when Will gives him a personalized jersey, Nate responds with private abuse. The apparent correction does not change the conduct. It relocates the harm to a more vulnerable target.

That sequence should concern every compliance officer. A manager confronted about misconduct may learn the wrong lesson: avoid witnesses, control the record, and retaliate where detection is less likely. Closing a matter after an apology, without checking the experience of affected employees or monitoring subsequent conduct, can make the organization less safe.

The DOJ Evaluation of Corporate Compliance Programs asks how managers at all levels demonstrate commitment to compliance, whether employees are comfortable reporting concerns, are there “lines of reporting and communications”;  whether discipline is consistent, “Have disciplinary actions and incentives been fairly and consistently applied across the organization? Does the compliance function monitor its investigations and resulting discipline to ensure consistency?”;  and whether the company examines root causes, “Has the company undertaken a root cause analysis into areas where certain conduct is comparatively over or under reported?”  Nate’s conduct calls for more than informal coaching. It calls for fact-finding, documentation, protection of Will and Colin, and a plan to determine whether behavior actually changes (IE., ongoing monitoring)

Warning Signs Are Data

Richmond receives signals throughout Season 2. Nate becomes preoccupied with status, press coverage, social-media approval, and perceived slights. He resents Roy’s return to the coaching staff. He spits at his reflection to manufacture confidence. His criticism becomes personal, and his treatment of lower-status employees worsens.

None of these facts alone proves that Nate will betray the team. Together, they form a pattern. Compliance programs fail when each signal remains isolated: Human Resources sees a complaint, a supervisor observes disrespect, colleagues notice resentment, and senior leadership sees performance. No one assembles the complete picture. This is the pattern recognition issue. If no one person or data analytics tool is watching the pattern, it may not be noticed until it was too late.

Under the COSO Internal Control Framework, Richmond’s weakness spans risk assessment (Objective 2), information and communication (Objective 4), and monitoring (Objective 5). The organization has values, but it lacks a reliable process for gathering culture data and testing whether managers operate consistently with those values.

Grievance Becomes Betrayal

Nate’s culture risk becomes an organizational crisis in “Midnight Train to Royston” (Season 2, Episode 11). Trent Crimm informs Ted that an article will reveal Ted’s panic attack and that Nate is the source. In “Inverting the Pyramid of Success” (Season 2, Episode 12), Nate accuses Ted of abandoning him, rejects Ted’s apology, acts out by tearing the “BELIEVE” sign in half, and leaves for West Ham.

Nate has legitimate feelings about recognition, communication, and his relationship with Ted. Those feelings do not justify leaking a colleague’s sensitive health information to inflict reputational harm. Explanation is not exoneration. It also leads to what I consider one of most reprehensible lines in the entire series when Nate screams at Ted “You don’t belong here.”

Organizations should examine both individual accountability and system failure. Why did Nate believe betrayal was his only effective channel? Why did no one detect the escalating mistreatment of employees? Who owned his development after promotion? What information could he access because of his trusted position? Why did Richmond lack a process that could address his grievance before it became retaliation? A root-cause analysis that labels Nate disloyal and stops there will miss the control failures that allowed the risk to mature.

Incentives Can Amplify the Wrong Behavior

At West Ham, Rupert rewards Nate with title, status, a car, and proximity to power. In “Smells Like Mean Spirit” (Season 3, Episode 1), Nate mocks Richmond and Ted publicly and humiliates a West Ham player during training. Rupert does not remediate Nate’s insecurity. He weaponizes it.

This is incentive design in human form. One organization can suppress destructive behavior while another celebrates it. Compensation is only one incentive. Access, attention, public praise, elite membership, and fear of exclusion can be equally powerful. Nate eventually recognizes the cost. After refusing Rupert’s invitation to a private “boys’ night,” he leaves West Ham, as confirmed in “International Break” (Season 3, Episode 10). His departure is meaningful because he gives up the status he once treated as proof of worth.

Reintegration Requires More Than Forgiveness

Nate begins repairing harm by quietly completing Will’s work and leaving an apology in “International Break.” In “Mom City” (Season 3, Episode 11), several players invite him back, but Nate hesitates because Ted has not approved the plan. Beard ultimately offers him a second chance. In “So Long, Farewell” (Season 3, Episode 12), Nate apologizes directly to Ted and returns to the coaching staff.

The human story is redemption. The compliance story is reintegration. A sound return-to-work plan would document findings, consider the views and safety of affected employees, define Nate’s role, require coaching, reinforce confidentiality and anti-retaliation standards, and monitor conduct over time. Restoration can support culture, but only if it does not communicate that talent or remorse erases accountability.

Questions for CCOs

Nate’s journey should prompt five questions:

  1. Do promotion decisions evaluate leadership conduct and risk, or only technical results?
  2. Are new managers trained on retaliation, confidentiality, escalation, discipline, and psychological safety?
  3. Can lower-status employees report misconduct by a popular or high-performing manager without fear?
  4. Does the organization combine complaint, exit, survey, investigation, and performance data to identify patterns?
  5. When a former employee returns after misconduct, is reintegration structured, documented, and monitored?

Nate becomes a culture risk because Richmond sees his talent before it understands his relationship with power. His story is a reminder that employees do not become ethical managers through promotion alone.

Next in the Series: Roy Kent and the Power of the Middle Manager

Nate shows what happens when managerial authority is granted without preparation or sustained oversight. Roy Kent offers the counterpoint. He is imperfect, confrontational, and sometimes slow to change, but he understands that standards become real through daily coaching, direct feedback, and visible accountability. In Part Four, we will examine why middle managers are the operational heart of an effective compliance program and how Roy converts leadership expectations into behavior inside the locker room.