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FCPA Compliance Report

IMPACT 2019- Sam Silverstein on Accountability

In this episode I visit with Sam Silverstein about his upcoming keynote speech at IMPACT 2019, entitled “Inspiring Accountability at Every Level”. Some of the highlights from the podcast include:

  1. Why Silverstein believes that “Accountability is the Highest Form of Leadership”.
  2. The problems he sees with the way companies talk about “accountability”.
  3. How accountability can create impact and influence for your organization through a leader’s values.
  4. How accountability enhances corporate culture and improves the organization.
  5. Information on why you should attend ECI’s IMPACT 2019.

Resources:
Sam Silverstein bio here
Sam Silverstein website, on how to lead with accountability here
Registration and Information on IMPACT 2019 here.

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FCPA Compliance Report

MTS Foreign Corrupt Practices Act Enforcement Action: Part V – Lessons Learned

We are on Episode V of a five-part exploration of the recent the Department of Justice and Securities Exchange Commission resolution of a Foreign Corrupt Practices Act enforcement action against the Russian telecom company, MTS. In this episode,  I conclude with the lessons learned for the compliance professional. Today we focus on four key lessons: (1) due diligence, (2) business justification, (3) business valuation and (4) the long road of bribery.
The documents which are the subject of this series are:
  1. MTS Deferred Prosecution Agreement (DPA);
  2. MTS Criminal Information (MTS Information);
  3. SEC Cease and Desist Order (Order);
  4. Karimova and Akhmedov Indictment (Indictment);
  5. Kolorit Dizayn Ink LLC Plea Agreement (Plea Agreement); and
  6. Kolorit Dizayn Ink Information (Kolorit Information);
  7. DOJ Press Release and
  8. SEC Press Release.
For additional reading see the blog post, “MTS FCPA Settlement and Karimova Indictment: Part V – Lessons Learned”
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Daily Compliance News

Daily Compliance News: March 22, 2019-the my bracket is already blown edition

MARCH 22, 2019 BY TOM FOX


In today’s edition of Daily Compliance News:

Categories
FCPA Compliance Report

IMPACT 2019, Tony Brigmon on Joy and Laughter

In this episode I visit with Tony Brigmon about his upcoming keynote speech at IMPACT 2019, entitled “The Funomenal Workplace: Energizing People & Culture with the Positive Power of Fun”. Some of the highlights from the podcast include:

Tony’s professional history at SW Airlines as the “Ambassador of Fun”. SW is generally recognized as one of the most fun places to work in the US.

  1. Why joy and laughter are keys to a great corporate culture.
  2. Some thoughts from his book “The FUNOMENAL WORKPLACE: Energizing People & Culture with the Positive Power of Fun!”
  3. How a fun workplace enhances corporate culture and improves the organization.
  4. Information on why you should attend ECI’s IMPACT 2019.

Resources:
Tony Brigmon website here
Registration and Information on IMPACT 2019 here.

Categories
FCPA Compliance Report

MTS Foreign Corrupt Practices Act Enforcement Action: Part IV – the Individual Indictments

We are on Episode IV of a five-part exploration of the recent the Department of Justice and Securities Exchange Commission resolution of a Foreign Corrupt Practices Act enforcement action against the Russian telecom company, Mobile TeleSystems PJSC (MTS). In this episode,  I look at the individual indictments, which charged Gulnara Karimova, daughter of the former President of Uzbekistan, with one count of conspiracy to commit money laundering and Bekhzod Akhmedov, a former MTS executive based in Uzbekistan with FCPA violations of one count of conspiracy to violate the FCPA, two counts of violating the FCPA, and one count of conspiracy to commit money laundering.
The indictment discussed the three companies who paid bribes to Karimova, who then laundered the money on the international stage. They were VimpelCom Ltd. (now VEON Ltd.), Telia Company AB (formerly TeliaSonera AB) (Telia) and MTS. The schemes Karimova used were so similar as to be almost identical. The only thing that changed was the name of the company she was shaking down money from in her march towards receiving over $1 billion in ill-gotten payments.
The documents which are the subject of this series are:
  1. MTS Deferred Prosecution Agreement (DPA);
  2. MTS Criminal Information (MTS Information);
  3. SEC Cease and Desist Order (Order);
  4. Karimova and Akhmedov Indictment (Indictment);
  5. Kolorit Dizayn Ink LLC Plea Agreement (Plea Agreement); and
  6. Kolorit Dizayn Ink Information (Kolorit Information);
  7. DOJ Press Release and
  8. SEC Press Release.
For additional reading see the blog post, “MTS FCPA Settlement and Karimova Indictment: Part IV – the Individual Indictments“
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Life with GDPR

Life With GDPR: Episode 23- Looking into the 2019 Crystal Ball

In this episode, I visit with Jonathan Armstrong consider some of his predictions for the rest of 2019. Even if these predictions do not become fully formed, you should consider them in light of your data privacy/data protection policies and protocols. Some of the issues and highlights are:

  1. Drones-what are the GDPR implications.
  2. The number of data breach notifications under GDPR. Through the end of January there were over 42,000 in the EU alone.
  3. Will AI and self-driving cars follow the rules on safe driving standards, or will there be new rules for the road?
  4. What will be the effects of data, big data and AI in elections going forward? What will be the fallout from Cambridge Analytica going forward?
  5. How will businesses respond to the industrialization of internet crime? What happens when there is a Zero-Day exploit?
  6. Cybersecurity insurance. Will standard insurance rules and regulations apply, or will new policy language be drafted for such coverage?

For more information on Cordery Compliance, go their website here. Also check out the GDPR Navigator, one of the top resources for GDPR Compliance by clicking here.

Categories
Daily Compliance News

Daily Compliance News: March 21, 2019-the Google spanked edition

MARCH 21, 2019 BY TOM FOX


In today’s edition of Daily Compliance News:

  • Chuck Pearson pleads guilty. (com)
  • USC goes after the students fraudulently admitted. (NPR)
  • EU spank Google to the tune of $1.5bn for anti-trust violations. (Financial Times)
  • Bayer stock plummets. (Washington Post)
Categories
FCPA Compliance Report

MTS Foreign Corrupt Practices Act Enforcement Action: Part III – Missed Red Flags and Overridden Controls

In a stunning resolution to one of the longest running bribery, corruption and money-laundering sagas on the international stage, the Department of Justice and Securities Exchange Commission both announced settlement of a Foreign Corrupt Practices Act (FCPA) enforcement action against the Russian telecom company, Mobile TeleSystems PJSC (MTS). This podcast continues a five-part series will examine the background facts of the case, provide a detailed review of the bribery schemes involved, the compliance failures of MTS and its actions during the investigation which contributed to the size of the penalty, the individual criminal prosecutions brought by the Department of Justice as a part of this action and the key lessons learned by the compliance practitioner. In this Part 3, I discuss the failures in the MTS compliance regime, the override of internal controls and local business unit management actions which facilitated the bribery schemes.
The schemes involved:
a. Purchase of entities controlled by or through Karimova;
b. Purchase of telecom licenses at inflated prices; and
c. Fraudulent charitable donations.
The documents which are the subject of this series are:
  1. MTS Deferred Prosecution Agreement (DPA);
  2. MTS Criminal Information (MTS Information);
  3. SEC Cease and Desist Order (Order);
  4. Karimova and Akhmedov Indictment (Indictment);
  5. Kolorit Dizayn Ink LLC Plea Agreement (Plea Agreement); and
  6. Kolorit Dizayn Ink Information (Kolorit Information);
  7. DOJ Press Release and
  8. SEC Press Release.
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Compliance Into the Weeds

Compliance into the Weeds: Episode 115-Regulatory Capture and Regulatory Approval at the FAA

Compliance into the Weeds is the only weekly podcast which takes a deep dive into a compliance related topic, literally going into the weeds to more fully explore a subject. In this episode, Matt Kelly (the coolest guy in compliance) and I take a deep dive into the circumstances around the FAA approval process regarding the Boeing 737 MAX in the context of the crash in Ethiopia.We consider regulatory capture and what it might mean for US leadership in the aviation industry worldwide.

Some of the highlights include:

  • What was the process by which the plane was approved by the FAA?
  • How did the Boeing CEO persuade President Trump to prevent the FAA from grounding the Boeing fleet during the investigation process?
  • Why did the Ethiopian government send the plane’s black box to France, rather than the US, for analysis?
  • How did the US lose the world’s leadership in aviation safety?
  • Where was Boeing’s compliance function during all of this?
  • What are the lessons for the compliance practitioner?

For additional reading, see articles discussed in this podcast:

  1. In the Seattle Times, Flawed analysis, failed oversight: How Boeing, FAA certified the suspect 737 MAX flight control system, by Dominick Gates
  2. In the Wall Street Journal, Prosecutors, Transportation Department Scrutinize Development of Boeing’s 737 MAXby Andrew Tangel, Andy Pasztor and Robert Wall
  3. In Slate.com, Where Did Boeing Go Wrong? by Jeff Wise.
Categories
Daily Compliance News

Daily Compliance News: March 20, 2019-the Risky Business edition

MARCH 20, 2019 BY TOM FOX


In today’s edition of Daily Compliance News:

  • Cambridge Analytica cover up? (The Daily Beast)
  • SEC ‘stunned’ Musk violated court order. (Bloomberg)
  • Japanese Olympic Committee head resigns amid bribery scandal. (Fox Sports)
  • It’s risky business to loan money to Donald Trump. (New York Times)