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All Things Investigations

All Things Investigations: Episode 29 – Interpreting Wire Fraud in the Wake of Percoco and Ciminelli Cases with Benjamin Britz

In this award-winning All Things Investigations episode, Tom Fox hosts Benjamin Britz to unpack two high-profile wire fraud cases reshaping how fraud convictions are viewed. Their conversation explores the Cuomo administration cases – Percoco and Ciminelli – providing in-depth analysis of the unanimous Supreme Court decisions and highlighting their broader implications on applying the wire fraud statute.

Ben Britz is a partner at Hughes Hubbard & Reed and an expert in the legal complexities regarding financial fraud. His analysis helps shape a clearer understanding of legal precedents, providing invaluable context to legal practitioners and interested observers.

You’ll hear Tom and Ben discuss:

  • Ben recently wrote a “client alert” article, Hanging by a Thread: Unanimous Supreme Court Snips Back Two Wire Fraud Convictions. The article discusses two high-profile wire fraud cases related to the Cuomo administration in New York, the Percoco and Ciminelli cases.
  • These cases examine the legality of influence exerted in government and the implications of bid rigging.
  • In the Percoco case, Joseph Percoco, a senior advisor to Governor Cuomo from 2011 to 2018, was charged with honest services fraud after he was paid $35,000 to lobby an arm of the New York state government on a labor dispute related to a real estate holding. The case raises questions about the legality of such actions when the individual is technically not in government service.
  • The Ciminelli case involves bid rigging, where Ciminelli and a third party manipulated the qualifications for a project’s bidding process so that only Ciminelli’s company could win. The case raises questions about the “right to control” theory and whether withholding information influencing decision-making amounts to fraud.
  • The Supreme Court has demonstrated a trend of a strict interpretation of wire fraud statutes, often reigning in attempts to expand the application of these laws. Tom and Ben discuss two Supreme Court decisions that pushed back on the expansion of wire fraud statutes, emphasizing a focus on the statutory language.
  • The Department of Justice’s positions in the Percoco and Ciminelli cases were unusual, as they only partially defended the charges.
  • The DOJ admitted that the right-to-control theory was misapplied in the Ciminelli case and agreed that the jury instructions in the Percoco case were based on outdated law.
  • The Supreme Court rulings in these cases put a greater onus on prosecutors to charge cases correctly according to the specific wording of the statute. This includes ensuring the facts align with the charge and not pursuing novel interpretations of the wire fraud statute.
  • The ramifications of these rulings may impact future cases and how prosecutors and defense attorneys approach wire fraud charges.
  • Understanding where the legal boundary lies is crucial, especially for those engaged in political activities, lobbying, and public bidding processes.

KEY QUOTES:

“But I think it’s also these are two weird cases in that in both of them, the DOJ takes a very odd position where it only sort of half defends its case.” – Benjamin Britz

“The Court is getting fairly tired of it, and they want these statutes to be read and interpreted as they’re written and charged in that way.” – Benjamin Britz

“Isn’t it possible that someone can be not in government but still have enough control over what the government is doing that bribing them is illegal?” – Benjamin Britz

Resources:

Hughes Hubbard & Reed website

Benjamin Britz on LinkedIn

Hanging by a Thread

Categories
Corruption, Crime and Compliance

The Murad OFAC Settlement and Sanctions Compliance Lessons Learned

“This [Murad OFAC] enforcement action reflects the fact that OFAC, in recognition of the increasing seriousness of sanctions enforcement, is taking more time to provide guidance through some of their enforcement actions,” Michael Volkov tells listeners. In this episode of Corruption, Crime and Compliance, Michael unpacks the recent enforcement action by OFAC against California-based cosmetics company, Murad. He offers detailed insight into the case, going beyond the headlines and examining the underlying issues that led to the violations, and drawing out key compliance lessons.

You’ll hear Michael talk about:

  • The Murad enforcement action is significant because it highlights OFAC’s increasing focus on sanctions enforcement and the need for global sanctions compliance organizations to have strong local oversight.
  • Over an eight-year period, Murad illegally exported goods and services to Iran in 62 transactions worth approximately $11 million. The company and a former senior executive were penalized, paying $3.3 million and $175,000 respectively.
  • OFAC acknowledged Murad’s voluntary disclosure of the conduct but still categorized the violations as egregious.
  • The conspiracy involved an exclusive agreement to sell Murad’s products in the Middle East, including Iran, and continued even after Murad’s acquisition by Unilever.
  • The key compliance deficiencies cited by OFAC: These include absence of a specific sanctions compliance program, participation of high-level executives in illegal conduct, and lack of understanding of OFAC sanctions by staff based in the United Kingdom.
  • OFAC emphasizes the need for senior management to commit to a culture of compliance and advises against placing a U.S. entity under the compliance structure of a non-U.S. entity that may lack familiarity with U.S. sanctions.
  • Unilever’s failure to uncover Murad’s ongoing contracts with Iran demonstrates the need for robust due diligence and integration processes during acquisitions.

 

KEY QUOTES:

“OFAC specifically cited that, ‘In some circumstances, placement of a US entity under the compliance structure of a non-US entity that may lack familiarity with US sanctions could prevent prompt identification of and response to potentially prohibited conduct’. In other words, you have to have local boots on the ground, you have to have sanctions expertise in your US operations even though you’re owned by a foreign global company.” – Michael Volkov

 

“It’s important to have people dedicated to the OFAC sanctions compliance process and to make sure that expertise is available to the business within the United States.” – Michael Volkov

 

“To this end, OFAC stated that senior executives with managerial responsibilities should take particular care to ensure awareness of applicable prohibitions and refrain themselves from engaging in sanctions violations. ” – Michael Volkov

 

Resources:

Michael Volkov on LinkedIn | Twitter

The Volkov Law Group

Categories
FCPA Compliance Report

FCPA Compliance Report – GWIC Ladies Reflect

Welcome to the award-winning FCPA Compliance Report, the longest-running podcast in compliance. This episode features a special episode with guests Lisa Fine and Mary Shirley of the Great Women in Compliance podcast. Great Women in Compliance is coming up on its 200th-anniversary show and will move to GWIC 2.0. I asked the women if they would reflect on where they have been and where GWIC may be going.

In this podcast, Mary and Lisa reflect on their podcast journey, discussing their impact on their audience and themselves. They talk about their interview style, attempts to get Dolly Parton’s permission to use her song, and upcoming episodes, including adding a co-host. The podcast highlights the importance of diverse voices and perspectives and aims to make guests comfortable while maintaining a professional yet relaxed tone. Join these dynamic hosts as they share memories and tease new ideas, including a book release and round table discussions with women. Take advantage of this engaging and authentic conversation about success, imposter syndrome, and making a difference!

Key Highlights:

  • Great Women in Compliance: 200th Episode Reflections
  • Evolution of a Passion Podcast
  • Overcoming Impostor Syndrome on Podcasts
  • Opportunities and Authenticity in Podcasting
  • Approach to podcasting and favorite moments
  • Podcast Length and Dolly Parton’s Theme Song
  • Building Successful Business Relationships as Co-Hosts
  • Thanking Listeners for Ideas and Growth

Notable Quotes:

“As a true supporter of women, you looked at us and said, ‘Why don’t you do it?’ And suddenly, right away, it went from this thing we talked about into something bigger than both of us and turned into a book where the people interested in this shared their stories.”

“The podcast started as a hobby but has become an intricate part of our lives, not only as individuals but at least as in my life as cohosts and friends.”

“And what I think was an honor for Lisa and myself as people who aren’t necessarily on the speaking circuit, that we wanted to get the diversity of thought and new voices on the show.”

“Everybody is a thought leader. I’m talking to you because I think you’re a thought leader, and I think you’re bringing something to the table that, again, in a way, which not to make somebody feel pressured into doing it But I also think that’s how I connect with people. Whether they like it or not, this is the conversation. And this is who I am.”

Resources

Mary Shirley

Lisa Fine

Great Women in Compliance

Tom Fox

Instagram

Facebook

YouTube

Twitter

LinkedIn

Categories
Daily Compliance News

Daily Compliance News: June 5, 2023 – The Dylan Tokar 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.

Stories we are following in today’s edition:

  • US firms raise corruption concerns in Ukraine grain deal. (WSJ)
  • Two whistleblowers appeal the Ericsson $279MM whistleblower award. (WSJ)
  • AG files suit to end Civil Rights laws. (Reuters)
  • Dylan Tokar celebrates 4 years a the WSJ Risk and Compliance Journal.
Categories
Trekking Through Compliance

Trekking Through Compliance Episode 3 – Compliance Lessons from Where No Man Has Gone Before

In this episode of Trekking Through Compliance, we consider Where No Man Had Gone Before, which aired on September 22, 1966, Star Date 1312.4. The first Star Trek episode was made (not counting the pilot episode, The Cage), although not the first aired. It differs from subsequent episodes in that there is no “Space, the final frontier” voice-over during the theme song at the beginning.

Story

The Enterprise discovers a 200-year-old ship recorder from the SS Valiant near the galaxy’s edge. Shortly after, the Enterprise passes through an unknown phenomenon that causes major damage and knocks out navigators Gary Mitchell and Dr. Elizabeth Dehner (both of whom have high ESP ratings). When Gary recovers, he begins to acquire telepathic and telekinetic powers. Kirk alarmed at the prospect of having his ship taken over by an increasingly powerful and tyrannical Mitchell, is convinced by Spock to maroon Mitchell at the lithium cracking plant of Delta Vega. Dr. Piper has no explanation for what is happening. Gary kills Lee Kelso and escapes from his imprisonment. Kirk follows him and can destroy him with the help of Dr. Dehner, who is also beginning to acquire the power but kills herself in the process.

Commentary

We take a deep dive into into compliance lessons drawn from the episode’s plot, emphasizing the importance of root cause analysis, risk management, adaptability, ethical leadership, monitoring and controls, balancing innovation with safety, effective team communication, and understanding human behavior in the context of compliance. These lessons are crucial for building and maintaining effective compliance programs in any organization.

Key Highlights

·       Plot Summary of Where No Man Has Gone Before

·       Key Compliance Takeaways

Resources

Excruciatingly Detailed Plot Summary by Eric W. Weisstein

MissionLogPodcast.com

Memory Alpha

 

Categories
Sunday Book Review

Sunday Book Review: June 4, 2023 – The Books on Orwell Edition

In the Sunday Book Review, I consider books that would interest the compliance professional, the business executive, or anyone who might be curious. It could be books about business, compliance, history, leadership, current events, or anything else that might interest me. In today’s edition of the Sunday Book Review, we begin a two-part look at George Orwell and his writings. Today we review books on Orwell. Next week, it’s booked by Orwell.

·      Orwell: The New Life by DJ Taylor

·      Orwell: The Life by DJ Taylor

·      Orwell: The Authorized Biography by Michael Sheldon

·      Why Orwell Matters by Christopher Hitchens

Categories
Trekking Through Compliance

Trekking Through Compliance – Episode 2 – Charlie X

In this episode of Trekking Through Compliance, we consider Charlie X, which aired on September 15, 1966, Star Date 1533.6.

The USS Enterprise meets the merchant vessel Antares to take charge of Charlie Evans, the sole survivor of a transport ship that crashed on Thasus. For fourteen years, 17-year-old Charlie grew up alone, stranded in the wreckage, learning to talk from the ship’s computer systems, which remained intact.

Despite his eagerness to please, Charlie becomes obnoxious since his lack of upbringing has left him with no knowledge of social norms or control of his emotions. He latches on to Captain Kirk as a father figure and develops an infatuation with Yeoman Janice Rand. He demonstrates extraordinary powers of telepathy and matter transmutation. When the Antares is nearly out of sensor range, it transmits a message to the Enterprise. The message is cut off before it can convey a warning. Scanners show the Antares has been reduced to debris.

Realizing Charlie’s powers are too great to be controlled, and Kirk opts to divert from Alpha V to at least keep Charlie away from a civilized world where he would wreak havoc. Charlie discovers Kirk’s plans and takes control of the Enterprise.

A Thasian ship approaches and restores the Enterprise and its crew to their proper forms. The Thasian commander says that his race gave Charlie his powers so he could survive in their world, but these powers (which they can’t remove from him) make him too dangerous to live among humans. Charlie begs Kirk not to let the aliens have him since the Thasians lack any physical form or capacity for love. However, the Thasians reject Kirk’s argument that Charlie belongs with his kind, with a final echoing wail of “I wanna stay!

Compliance Takeaways:

  1. Ask more of your front-line employee, and they will respond positively.
  2. Compliance is like a multi-dimensional chess match.
  3. As a compliance professional, who are you mentoring?

Resources:

Excruciatingly Detailed Plot Summary by Eric W. Weisstein for CharlieX
MissionLogPodcast.com-Charlie X

Categories
Daily Compliance News

Daily Compliance News: June 3, 2023 – The It’s Going to be Bad 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.

Stories we are following in today’s edition:

  • Ja Morant punishment is to be levied after NBA Finals. (ESPN)
  • The law department of the future. (WSJ)
  • A white-collar prison in El Salvador? (Reuters)
  • Ex-Novartis execs cleared in Greece. (Fierce Pharma)
Categories
Because That's What Heroes Do

Because That’s What Heroes Do – Firefly – Episode 2, The Train Job

Megan and I go in a different direction for our next sci-fi series as we take up the 2002 series Firefly. The show is an American space Western drama television series. The series is set in the year 2517, after the arrival of humans in a new star system, and follows the adventures of the renegade crew of Serenity, a “Firefly-class” spaceship. The ensemble cast portrays the nine characters who live on Serenity.

Get ready to ride the space rails with hosts Tom Fox and Megan Dougherty in the latest episode of Because That’s What Heroes Do. In this new adventure, the duo dives into the second episode of Firefly, “The Train Job.” Discover new insights on the classic Western trope of using spaceships to rob trains, meet the ruthless villain, Niska, and learn about the value of money in the show. Explore the crew’s willingness to do anything for a quick buck and how their ethical issues rear their heads. Get excited to hear the hosts’ thoughts on the crew’s botched cover story and the extreme consequences of stealing valuable medicine. Join in on the conversation as they discuss the perils of TerraForming and the failures of the Alliance. Plus, stick around for their thoughts on an episode with the perfect blend of Western and sci-fi themes. Tune in to Because That’s What Heroes Do and get swept away in this space western adventure!

Highlights:

  • Firefly’s Train Job: Classic Western trope with a twist
  • Train Robbery and Terraforming Consequences
  • Controversy Surrounding Shipping Homeless People

 Resources

Megan Dougherty 

LinkedIn

One Stone Creative

Twitter

Tom 

Instagram

Facebook

YouTube

Twitter

LinkedIn

Categories
Principled Podcast

Principled Podcast – S9 E15 – The Key to Effective Training and Communications? Simplicity.

What you’ll learn on this podcast episode

Building a winning culture of ethics and compliance requires efficiency and effectiveness in all aspects of a program—including training, communications, and a code and conduct. But how do you ensure these elements all work together to create a meaningful and intentional learning experience? While also contributing to desired business outcomes? In this episode of LRN’s Principled Podcast, host Carolyn Grace explores why a deep understanding of curriculum design is essential to developing an effective program. Listen in as she speaks with Erick Sawyer, the chief ethics and compliance officer of Inhabit, (recently rebranded from Inhabit IQ), and Damien DeBarra, the leader of Curriculum Design and Communication Strategy in LRN’s Advisory group, about the learning curriculum they created by leveraging Inhabit’s code of conduct. 

Guest: Erick Sawyer

Erick Sawyer – Grayscale

As Inhabit’s chief ethics and compliance officer, Erick Sawyer leads the company’s day-to-day compliance operations to ensure Inhabit is in compliance with various regulatory requirements and employees are in adherence with internal procedures and policies. Erick creates strategic programs that are paired with tactical plans to positively impact customers and employees across the software ecosystem. Prior to joining Inhabit, Erick held various roles in legal, compliance, quality, and learning and development in the financial services industry. He has focused his career on bridging the gap between people and process to drive a culture of ethics and compliance, protecting the brand and reputation of leading organizations.

Guest: Damien DeBarra

Damien DeBarra – Grayscale

Damien DeBarra brings more than 20 years’ experience to the instructional design and strategic workforce planning spaces.  As the Leader in Curriculum Design and Communication Strategy at LRN, he focuses on creating training solutions that ensure business buy-in and connect hiring practices to day-one learning roll-outs. In the last few years, Damien has helped organizations such as United Airlines, Sun Life Financial, SITEL, Astellas, MFS Investments, and SAP create 90-day action plans for their solutions and develop supporting communication strategies. He has worked with over 200 clients in areas ranging from retail to pharmaceuticals, call centers to nuclear plant manufacturing. Prior to LRN, Damien spent more than nine years as the Learning Solutions Director and Head of Instructional Design at Interactive Services. He has also worked as an instructional designer at NCALT, Electric Paper, and Epic. Damien received his BA from Maynooth University.

Host: Carolyn Grace

Carolyn_Grace_Principled_Podcast

Carolyn Grace is a content writer on LRN’s global marketing team and co-producer of the Principled Podcast. She specializes in writing compelling stories about ethics and compliance that resonate across business segments, industries, and personas while hitting critical KPIs for traffic and engagement. Topics she frequently covers include ESG, data privacy and protection, DEI, the role of boards of directors and leadership, corporate training and e-learning, and ethical corporate culture.

Prior to joining LRN, Carolyn was a writer and content strategist at Thinkso Creative, a boutique creative agency in New York City. At Thinkso, she wrote internal and external communications for clients in technology, nonprofit, law, logistics, and financial services sectors. Before that, Carolyn conducted trend research and cultural strategy at Horizon Media, specializing in entertainment, travel, media and technology, health and wellness, and food and beverage categories. Carolyn graduated magna cum laude from the University of Pennsylvania with a B.A. in American History and French Studies and a minor in Journalism.