Categories
Sunday Book Review

November 6, 2022 the Roof of the World edition

In today’s edition of Sunday Book Review:

Sherpa by Ankit Babu Adhikari and Pradeep Bashyal

Himalaya by John Keay
High
by Erica Fatland

Into Thin Air by John Karkauer

Categories
Popcorn and Compliance

Leadership Lessons from Gladiator

Richard Lummis and Tom Fox continue their review of Best Picture-winning movies and draw leadership lessons from them. It is also a way to watch some great movies and garner some leadership lessons. In this episode, we consider the movie Gladiator.  Highlights include:

  • Movie Storyline
  • Favorites Scenes
  • Life Lessons
  • Business Leadership Lessons
  • Maximus’ Relationships

Resources

8 Virtues of Gladiator Leadership

5 Powerful Life Lessons from Gladiator

Six Leadership Lessons from Gladiator

Down to Business: Seven leadership lessons from Maximus

Categories
Daily Compliance News

November 5, 2022 the Axe Falls Edition

In today’s edition of Daily Compliance News:

  • Musk axes Twitter workforce. Was it legal? (NYT)
  • IRS is looking into Russia sanctions violations. (WSJ)
  • When it comes to data, sometimes less is more. (WSJ)
  • Société Générale SA names new group chief risk officer. (WSJ)
Categories
Corruption, Crime and Compliance

Matt Stankiewicz on the Bittrex OFAC and FinCEN Enforcement Action

powered by Sounder

In this episode, cryptocurrency expert Matt Stankiewicz discusses why sanctions and AML compliance need to be taken seriously in the cryptocurrency industry.

Matt Stankiewicz, a Partner at Volkov Law, is a leading industry expert on cryptocurrency. Bittrex, a leading cryptocurrency exchange, suffered twin enforcement actions for AML and Sanctions Compliance deficiencies. Matt takes a deep dive into the enforcement actions and outlines practical compliance steps that every cryptocurrency exchange should implement.

Join us as we discuss the following:

  • The enforcement action on Bittrex led by OFAC and FinCEN
  • Why compliance risks are increasing in the cryptocurrency industry
  • Practical steps that all cryptocurrency exchanges should implement

To reach Matt, email him at: mstankiewicz@volkovlaw.com

Categories
Sports and Compliance

The Brooklyn Nets and a Cultural Trainwreck

Welcome to the inaugural episode of Sports and Compliance. For the longest time, I have wanted to have a podcast on the intersection of Sports and the World of Compliance and Ethics, both for those stories as the play out on the Sports Page and for the lessons they provide to business executives and compliance professionals. In this podcast series, I am joined by one of the top compliance commentators around, Stephen Martin, CCO at Skillsoft. Together will use our love of sports and competition to discuss current ethical issues in sports, look at compliance through a sports lens and determine how the world of sports and its stories can be a guide for the compliance professional.

In this inaugural episode, we consider the ethical and cultural trainwreck which is the 2022 Brooklyn Nets. From a star player who tweets about antisemitic movies and tropes, to a ham-handed firing of their head coach, to the courting of a replace who is a currently suspended NBA coach to replace him (as in suspended for violation of a team’s sexual harassment rules); the Nets are as close to an ethical trainwreck as we have recently seen. Find out what leadership and compliance lessons there are to be garnered this series of very self-inflicted ethical wounds.

Resources:

Tom in the FCPA Compliance and Ethics Blog

Categories
Daily Compliance News

November 4, 2022 the Pay Up Edition

In today’s edition of Daily Compliance News:

·       Moonves and Paramount to pay $9.75MM.  (NYT)

·       Teva to pay $4.2 bn to settle the opioid suit. (Reuters) 

·       Vonage to pay $100MM. (WSJ)

·       Glencore ordered to pay $300MM in UK. (FT)

Categories
The Wirecard Saga

Season 3, Episode 34 – The Docket Part 2: Jane Doe

Welcome to Season 3 of Lies, Spies & Corporate Crimes: The Wirecard Saga. The Wirecard Saga has become the world’s leading source of all things Wirecard. In Lies, Spies & Corporate Crimes: The Wirecard Saga, Mikhail Reider-Gordon, Managing Director of Institutional Ethics & Integrity at Affiliated Monitors, looks at the biggest financial scandal in post-war Germany from a variety of angles. In this episode 34, Mikhail continues her exploration of those persons, entities, and governments who have been damaged, some beyond repair, by Wirecard and the nuclear fallout from its scandal. Some of the highlights include:

  • Lawsuits continue to disclose more dirt
  • A truly brave whistleblower
  • Crimes against children fund Wirecard
  • German technology fueled Internet porn
  • How to hide dirty profits
  • MindGeek was a good client
  • Banks in it together: Wirecard, FBME & Deutsche
  • Visa played its part
Categories
Presidential Leadership Lessons for the Business Executive

Leadership Lessons from Andrew Johnson: Part 1-Early Years to VP Nomination

Richard Lummis and Tom Fox continue their exploration of American Presidents as they begin a two-part series on Andrew Johnson. In this Part 1, they discuss Johnson’s early life up to his nomination as Lincoln’s Vice-Presidential running mate in 1864. Highlights include:

·      Early Life

·      State Political Career 

·      Federal Political Career

·      Up to the Civil War

·      Leadership Lessons

Resources

Andrew Johnson-UVA Miller Center

Is Andrew Johnson the worst president in American history?

Andrew Johnson: The most-criticized president ever?

Categories
Daily Compliance News

November 3, 2022 the Pls Fix Edition

In today’s edition of Daily Compliance News:

  • CVS and Walgreens to pay $10bn? (WSJ)
  • Leidos receives a subpoena. (WSJ)
  • Crap bosses and personal time. (WSJ)
  • Glencore UK fine to be announced Thursday. (Bloomberg)
Categories
Blog

The Nets and a Failure of Corporate Culture

What is corporate culture? What are ethical values? What is integrity at your organization? All of these questions are critical to the success of any business. Unfortunately, we usually see the answers to these questions play out in the negative. This week the Brooklyn Nets hit the trifecta of negative answers to all the above.

It all started out with a tweet from that noted freethinker (i.e., flatworlder & anti-vaxxer) Kyrie Irving who, according to Rolling Stone magazine, took to Twitter to boost a movie and book, Hebrews to Negroes, stuffed with antisemitic tropes. The movie espouses ideas in line with more extreme factions of the Black Hebrew Israelites, which have a long history of misogyny, homophobia, xenophobia, Islamophobia, and especially antisemitism. If that was not bad enough, when asked to explain himself in a post-game press conference, Irving was shocked, shocked that anyone would question him, saying according to ESPN, he “does not believe he did anything wrong in promoting an antisemitic film and book on his social media accounts.”

The condemnation was swift from the Nets and other National Basketball Association (NBA) players. According to Rolling Stone, as an organization, “The Brooklyn Nets strongly condemn and have no tolerance for the promotion of any form of hate speech. We believe that in these situations, our first action must be open, honest dialogue. We thank those, including the ADL, who have been supportive during this time.” The Nets owner Joe Tsai also issued a statement Friday night on Twitter expressing, “I’m disappointed that Kyrie appears to support a film based on a book full of anti-Semitic disinformation. I want to sit down and make sure he understands this is hurtful to all of us, and as a man of faith, it is wrong to promote hate based on race, ethnicity or religion.” He added, “This is bigger than basketball.”

Nets (then-more on that below) coach Steve Nash said in Basketball News, “”I just hope that we all go through this together,” Nash said before the Nets game against the Indiana Pacers. “There’s always an opportunity for us to grow and understand new perspectives. “I think the organization is trying to take that stance where we can communicate through this. And try to all come out in a better position and both more understanding and more empathy for every side of this debate and situation,” Nash added.”

According to SI.com, “the Inside the NBA crew of Ernie Johnson, Charles Barkley, Kenny Smith and Shaquille O’Neal had strong opinions on the” tweet and events.  “Barkley and O’Neal didn’t pull any punches in ripping Irving, with both hosts referring to him as “an idiot.” Barkley expressed his disappointment that the NBA didn’t suspend Irving, while Shaq called out Irving.”

What does a company do when one of its top producers lays out an antisemitic tweet? Why of course it fires the coach. Of course, the Nets said was it was based on the team’s abysmal start. GM Sean Marks said, “a change is necessary at this time. ESPN noted “it’s exceptionally rare for an NBA coach to be let go on a game day, much less roughly 12 hours after a win (the Nets beat the Indiana Pacers 116-109 on Monday night). Marks explained the business decision had been in the works for days. If the timeline he refers to here is accurate, these conversations would have actually started only a few days into the 2022-23 regular season.” Although Marks said the players had no input into the decision to fire Nash, nothing gets done on the Nets without the input of its star player Kevin Durant. In other words, Irving puts out an antisemitic tweet and the coach is fired. All of that sounds like NCAA enforcement back in the day where when Ohio State was caught violating the recruiting rules, Western Kentucky got put on probation.

But it even gets worse from a culture, reputational and integrity perspective next. Apparently, the Nets are aiming to hire the suspended Boston Celtics head coach Ido Udoka. Udoka was suspended before the season started, according to The Athletic for “having an intimate relationship with a female member of the Celtics organization. The Celtics front office determined Udoka’s actions were unacceptable, and he was unfit to coach the team he had just led to the NBA Finals. They suspended the second-year coach for the entirety of the 2022-23 season.”

The Athletic (and even WOJ) reported that Udoka is on the verge of being awarded the same job in a different organization, not even two months into his suspension. The article went on to ask, “And what about the Nets? Did they even think about the women who work in their organization and how they would be affected by such a hire? Hiring Udoka is a slap in the face to all of those women and women everywhere.”

What is the culture of the Nets? I went to the Nets website to review their Code of Conduct but it is entitled, NBA Fan Code of Conduct. No policy on harassment, discrimination or anything else. Even the Houston Astros had a policy against abuse towards women when they decided it only applied to Astros players and not players from other teams when they traded for Roberto Osuna.

Where is the NBA in all of this? Nowhere to be seen apparently. Once again, I went to the NBA website and no public facing Code of Conduct for itself or its teams.

What does all of this say about the culture, ethics and integrity of the Net? I will leave you to conjugate on that question. What would you do when a top producer violates an accepted norm by supporting a clearly antisemitic movie? Do you think he can claim that there was nothing in the Code of Conduct about it as the Nets apparently have no Code of Conduct? What does it say about its romancing of a new head coach who is currently under suspension for having an inappropriate relationship with a female team employee that the Celtics considered a violation of the team’s organizational guidelines. What will it mean for female employees? Will or even can they ever trust him?

And everyone thought the culture of the Washington Football Team was the worst in sports.