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Episode 175 – the NBA Steps In It edition

Post author By admin
Post date October 11, 2019
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As Tom watches the Astros inexorable march towards the World Series, he and Jay reflect on the difficulty of the NBA in navigating their Chinese waters, they then discuss some of this week’s top compliance and ethics stories which caught their collective eyes.

DOJ announced new guidelines for determination of inability of a company to pay a fine or penalty.
NBA steps in it in China. Chris Mannix on Daryl Morey’s original tweet that set off the firestorm.
Named in a FCPA investigation? No defamation case for you. Hailey Connath reports.
A new way to calculate SEC whistleblower awards. Amanda Rose discusses.
What is the intersection of compliance and tech? (Answer-it’s all about culture). Mike Volkov opines.
What is the CCO’s role in culture? Jay continues his 5-part series.
Caremark duties extend to monitoring, not simply oversight. Kevin LaCroix explains.
What is the interest group theory of anticorruption enforcement? Sean Griffin and Thomas Lee in a new article.
What is the reverse agency problem for corp officers and directors? Asaf Eckstein and Gideon Parchomovsky opine.
Listen in next week, where Jay joins Tom in a five-part podcast series exploring ethical culture in a corporation, sponsored by AMI. The lineup will be the following: Monday-What is Ethical Culture; Tuesday-Factors Influencing Ethical Culture; Wednesday-The Role of the CCO; Thursday Assessing Ethical Culture Friday- the Role of Ethical Culture in an Overall E&C Program. The podcast will be available on multiple sites: the FCPA Compliance Report, iTunes, JDSupra, Megaphone, YouTube, Spotify and the Compliance Podcast Network.

Tom Fox is the Compliance Evangelist and can be reached at tfox@tfoxlaw.com. Jay Rosen is Mr. Monitor and can be reached at jrosen@affiliatedmonitors.com. For more information on how an independent monitor can help improve your company’s ethics and compliance program, visit our sponsor Affiliated Monitors at www.affiliatedmonitors.com.

Daily Compliance News

October 10, 2019- the My Little Sister’s Birthday edition

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Post date October 10, 2019
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In today’s edition of Daily Compliance News:

Employee named in corruption investigation can’t sue for defamation. (Law360)
NBA finds a spine, events in China cancelled as a result. (com)
Navy whistleblower claims fraud in submarine building. (Washington Post)
Can a whistleblower manipulate the system? (FT)

12 O’Clock High-a podcast on business leadership

Leadership Lessons from the South Sea Company Bubble

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Post date October 9, 2019
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In Part 2 of this special four-part podcast series, Richard Lummis and myself consider business leadership from a different angle, that of great economic disaster. This podcast series was inspired by the Great Courses series of lectures entitled, Crashes and Crisis: Lessons form a History of Financial Disasters, hosted by Professor Connel Fullenkamp. In this podcast series, we will consider the Dutch Tulip Bubble from the 1630s, the South Sea Bubble of 1720, the Mississippi Bubble of 1720 and the 1907 Panic. Today we continue with the South Sea Company Bubble of 1720.
Fullenkamp said of the scandal, “The South Sea Company went from an obscure British trading organization in the early 18th century, with a share price of £128, to England’s most important company, with its shares trading at more than £1000—over the course of just 6 months. The company was at the center of one of history’s most interesting stock bubbles, one largely built on stock price manipulation and corruption. The South Sea bubble is a complex, fascinating story about the early days of the stock market in England and a cautionary tale about the dangers of mixing private enterprise and government finance.”

What does the South Sea bubble teach us about the nature of bubbles and crashes? Fullenkamp identified three general points. First, “When governments get too involved in any asset market, there’s bound to be danger. People interpret the government presence as a sign that the asset can’t lose, so they’re willing to overpay for it .” Second, the South Sea bubble, similar to the tulip bubble that preceded it, “was made possible by easy credit. The ability to buy stocks on credit, with absurdly low down payments, made people all too willing to buy the company’s shares.” The third and final point is that “Market manipulation can, and does, play a role in bubbles. And manipulation can be difficult to detect until after a bubble bursts.”

Focusing on the fraud and market manipulations of the South Sea Bubble, James Narron and Richard Skeie, in their article “Crisis Chronicles: The South Sea Bubble of 1720—Repackaging Debt and the Current Reach for Yield”, found four factors. (1) Start with insider trading, here by picking up the British National Debt; (2) Pay bribes to those who have to approve the deal, here Members of Parliament; (3) Ban rivals, here the South Sea Company persuaded Parliament to pass the ‘Bubble Act’ which banned corporations in competition with the South Sea Company; and (4) Repackage worthless old debt for new investors, here think “Asset-backed securitization and collateralized debt obligations” in 1720 and you begin to see the problem.

Tags South Sea Company Bubble

Compliance Man Chooses the Target

Special 10th Anniversary Show with Guest Irfan Ahmed

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Post date October 8, 2019
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Welcome to the special 10th anniversary celebration of Compliance Man Chooses the Target. In honor of this celebration with take things in a different direction today as Tim Khasanov-Batirov and myself are joined by Irfan Ahmed. Irfan is a Chief Compliance Officer at Dr. Reddy’s ( https://www.drreddys.com/ ) an international pharmaceutical company headquartered in India. He is also Tim’s boss. Irfan leads the Dr. Reddy’s compliance team globally, driving compliance across the organization at a global level thereby protecting company from any financial and reputational risks arising out of non-compliance and ensuring a culture of compliance and ethics in the organization. I know you will enjoy hearing about Irfan’s journey in compliance, the realities of doing compliance in India and where compliance may be headed in the world’s largest democracy.

Tags Irfan Ahmed

Innovation in Compliance

Celebrating 100 Episodes of Innovation in Compliance

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Post date October 8, 2019
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Tom Fox celebrates this special 100th episode of Innovation in Compliance with Megan Dougherty. Megan is the co-founder of One Stone Creative, the company that produces this podcast. The show takes a different spin: first Megan interviews Tom, then he interviews her. They talk about how the show started, favorite episodes, and how you and your business can benefit from podcasting.
Listen to the episode now:

Favorite Episodes
Megan wants to know what Tom’s favorite episode has been so far. He responds that he loves all the episodes equally, but he has the most fun doing series. It’s easy for him to create so much content because he’s continuously thinking up new ideas, he says.
Origin of Innovation in Compliance
Tom’s friend Howard Sklar, now a Managing Director at Morgan Stanley, introduced him to the world of podcasting. After Howard moved to the corporate world, Tom took over their podcast and went on to start several of his own. He feels that podcasting is like having a virtual cup of coffee with his guests: he sets out a short outline for each episode but allows the conversation to flow naturally. Whatever they’re passionate about in the world of innovation or compliance, guests are welcome to share. Megan remarks that she enjoys listening to the show because it’s accessible even to laypeople, despite being firmly niched.
Benefits of Having a Podcast
Megan asks Tom how he has benefited from hosting a podcast in his personal life, his network and his business. He encourages listeners to absolutely start a podcast if they want to. Among the many benefits, he says, are:

There’s a low cost to enter;
Your network grows, within your company and industry;
You can tap into new markets.

About One Stone Creative
Tom asks Megan how her company began. She answers that she and her co-founder, Audra Casino, started the company two years ago. They used to work together, but hadn’t been in contact for over a year, when Audra called her up and asked if she wanted to go into business together. Their original idea was to be in video production, but it didn’t take off. Podcasting did, though. They quickly got their first podcast client and have been getting more and more referrals since then. Today, they produce podcasts for many interesting people.
How to Produce a Winning Podcast
Megan walks us through how she and her team produce a podcast, from concept to launch to weekly production. They create an AV identity for each show, which includes cover art, intro sound and even marketing materials.
What’s Next for Innovation in Compliance?
Innovation in Compliance is set to continue for another 100 episodes – and beyond! The world of compliance practitioners, innovators, entrepreneurs, and commentators is full of people with interesting things to say, and Tom Fox is ready to talk to them.
Resources
One Stone Creative
Email Megan: megan@onestonecreative.net

Tags 100 Episodes, podcasting

FCPA Compliance Report

Joe Gerard on Conducting Fraud Investigations with Case Management Software

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Post date October 7, 2019
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In this episode I visit with Joe Gerard, CEO of i-Sight Software. We consider i-Sight’s recent eBook, Conducting Fraud Investigations with Case Management Software and how case management software facilitates the investigative process. Some of the highlights include:

What is iSight Software and what are some of its services, products and tools.
What is Case Management Software?
How does it assist corporate fraud investigations?
How does it help both accuracy and speed?
Gerard provides an example of how case management SW works.
How case management SW streamlines a pre-existing investigative process?
What is the ROI of case management SW?
What are some of the differences between homegrown case management solutions (or worse yet—spreadsheets) and case management SW?
Where can listeners go for more information?

Resources

Joe Gerard

i-Sight Software