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Adventures in Compliance

Adventures in Compliance – Leadership Lessons from the Five Orange Pips

Welcome to a review of all the Sherlock Holmes stories which are collected in the work, “The Adventures of Sherlock Holmes.” The appeared in the Strand Magazine from July 1891 to June 1892. Over 12 episodes, I will be reviewing each story and mine them for leadership, compliance and ethical lessons. In this episode, I consider “The Five Orange Pips” which was originally published on the Strand Magazine in November 1891 and is included in the collection of stories found in the book ‘The Adventures of Sherlock Holmes’.

Summary

The story begins when a young man named John Openshaw seeks Holmes’ help. John has received a mysterious letter from abroad containing five dried orange pips and the initials “K.K.K.”, along with a demand to “put the papers on the sundial”. Both his uncle, Elias, who lived in America for several years, and his father had previously received similar letters and subsequently died under suspicious circumstances.

Sherlock deduces that K.K.K. represents the Ku Klux Klan, a racist group from the United States, and the five orange pips are a death threat, previously sent to John’s relatives who had disobeyed the order to surrender certain papers. Elias Openshaw, John’s uncle, had made enemies during his time in the US due to his involvement with the group, and the papers likely hold some dangerous information about them.

Holmes advises John to return home, find the papers, and turn them over. Unfortunately, before this could happen, John is found dead, apparently drowned after falling into a small river.

Holmes sends a reply to the Klan’s address in America, mimicking their style by including five orange pips in the envelope. He suspects that the people responsible for John’s death were on a sailing ship called the Lone Star. While Holmes is unable to bring the criminals to justice directly, the Lone Star is reported to have been lost at sea in a storm, implying a form of poetic justice.

This story ends on a somber note, as it is one of the few cases that Holmes is unable to solve in time to prevent a tragic death. 

Leadership Lessons 

1.         Be proactive: Holmes was proactive in investigating the case of the five orange pips, even when there was limited information available. Leaders should also be proactive and take the initiative to solve problems and achieve their goals.

2.         Persevere: Holmes persevered in his investigation of the case, even when the trail seemed to have gone cold. Leaders should also persevere and not give up in the face of challenges or obstacles.

3.         Stay focused: Holmes stayed focused on his investigation and did not let distractions or other cases interfere with his work. Leaders should also stay focused on their goals and avoid being sidetracked by distractions.

4.         Use creative thinking: Holmes used his creative thinking and innovative approaches to solve the case of the five orange pips. Leaders should also encourage and embrace creative thinking, as it can lead to new solutions and breakthroughs.

5.         Be vigilant: Holmes was vigilant and kept a watchful eye for any clues or developments in the case of the five orange pips. Leaders should also be vigilant and keep a watchful eye for any opportunities or threats that may impact their organization.

Resources

The New Annotated Sherlock Holmes

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Categories
Corruption, Crime and Compliance

CFPB and OCC Hit Bank of America with $250 Million Penalty for Consumer Abuse Practices

Bank of America joins the infamous club of consumer abusers in the banking industry, despite the alarm bells set off by the notorious Wells Fargo case. On this week’s episode of Corruption, Crime and Compliance, host Michael Volkov explores the shocking details of Bank of America’s recent $250 million settlement for account fraud and abuse with the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC). This episode shines a light on corporate complacency, the inherent risk of ill-conceived sales incentives, and the importance of internal risk assessment in the wake of industry scandals.

You’ll hear Michael discuss:

  • The fraudulent practices perpetrated by Bank of America, compared to the infamous Wells Fargo scandal. He examines the similarities in the unethical practices and failure to adhere to consumer protection laws, and the recurring patterns in the banking industry’s consumer abuse cases.
  • The pitfalls of sales incentives structures, particularly when they lack appropriate checks and balances. Mike elaborates on how ill-considered incentives can encourage misconduct among salespeople.
  • The enforcement actions brought by the CFPB and OCC against Bank of America: fines amounted to $250 million—$190 million for consumer harms and penalties to the CFPB and $60 million in penalties to the OCC.
  • Unscrupulous methods adopted by Bank of America employees to reach their sales targets included illegally applying for and opening credit card accounts and charging customers multiple overdraft fees for the same transactions, significantly hurting consumers financially.
  • Michael dissects the bank’s promotional tactics, particularly the false advertising of special offers and the denial of sign-up bonuses due to inherent failures in their business systems. He discusses the negative impact of these practices on customers and the bank’s reputation.
  • Highlighting the current stringent regulatory environment, Michael stresses the need for organizations, especially banks, to maintain stringent internal audits and compliance measures. 
  • Based on the recent enforcement actions, Michael makes informed predictions about potential regulatory actions against Bank of America and discusses the bank’s responsibilities moving forward.

 

KEY QUOTES:

“You would think that Wells Fargo’s case would have sent alarm bells throughout Bank of America to take a look at their own sales practices to make sure they don’t suffer from the same type of abuse of conduct. And what’s clear is Bank of America just kept its head down, blinders on, and then developed their own problem.” – Michael Volkov

 

“Bank of America employees illegally applied for and then enrolled customers in credit card accounts in order to reach sales incentive goals.” – Michael Volkov

“This is a tough regulatory environment, and you would think Bank of America would try to address that through some kind of mitigation and sort of risk analysis and conducting audits to make sure that they don’t run into future abuses and practices like this.” – Michael Volkov

 

Resources:

Michael Volkov on LinkedIn | Twitter

The Volkov Law Group

Categories
Greetings and Felicitations

Greetings and Felicitations: The Future of Healthcare…Is Now: Part 1- Unlocking Healthcare: Passion & Patience

What is the future of healthcare and when will it arrive? To explore these and similar questions I visited with Dr. Ben Locwin and Scott Endicott in a five-episode podcast series. Over this series we will explore why the future of healthcare is now; gene and cell therapy, the use and misuse of statistics, Hippocrates and modern healthcare and where healthcare will be headed down the road. In this Part 1, we explore why the future of healthcare is now.

The global response to the COVID-19 pandemic has largely been a remarkable success, and healthcare workers have shown incredible dedication and passion in the face of extraordinary circumstances. In Part 1, guests Ben Locwin and Scott Endicott explained the need for a stronger advocacy position for healthcare, the challenges of the healthcare industry, and the importance of passion and patience in the industry. They highlighted the need for shared decision making between clinicians and patients, and the opportunities for startups to get products to market faster.

Healthcare is an ever-changing landscape, and regulatory favorability is allowing for faster approval of products to market. New therapies are already emergent and available for use, and healthcare is becoming intensely personal. The goal of the podcast series is to provide options for patients and clinicians to advocate for better healthcare.

Healthcare can be a scary place, even with the opportunity for return to health. That’s why shared decision making is an important approach. This is where the clinician and patient share the best available evidence when faced with the task of making decisions. Patients are supported to consider their options and achieve their informed preferences, and it is the most ethically appropriate pathway.

Startups in the healthcare industry have a long and difficult regulatory approval process, taking 5-7 years at best. Investment, passion, belief, and engagement are essential for success in the healthcare industry. It can be daunting to take on such a challenge, but it is worth it to bring innovative solutions to the healthcare market.

To sum up, the global response to the COVID-19 pandemic has shown that passion and dedication are essential for success in the healthcare industry. Additionally, shared decision making is an important approach to ensure that the best available evidence is shared between clinicians and patients. Finally, startups in the healthcare industry require investment, passion, belief, and engagement to get products to market faster.

Key Highlights

·      Passion in Healthcare

·      Biotech Investment

·      COVID Healthcare Impact

·      Shared Decision Making

Resources

Dr. Ben Locwin on LinkedIn

Scott Endicott on LinkedIn

Tom Fox on LinkedIn

Categories
31 Days to More Effective Compliance Programs

One Month to More Effective Reporting and Investigations – The Parameters of Privileges

The concept of privilege in an internal investigation is critical. Two important privileges are the attorney-client privilege and the work product privilege. Unfortunately, both are often misunderstood, miss-applied and consequently lost. To determine whether you have a valid privilege claim, it is incumbent to understand the parameters of the attorney-client privilege. In presentation, entitled “Attorney-Client Privilege ”, David E. Keltner, Kelly Hart & Hallman LLP, Elizabeth Brummett and Adrienne Parham, both from University of Texas Law School, wrote that under U.S. federal law, the attorney-client privilege applies when the following are present:

  1.  A client is seeking legal advice or a lawyer’s services;
  2. The person to whom the communication is made is a lawyer or his or her representative;
  3. The communication relates to a fact disclosed from a client (a representative) to a lawyer (a representative);
  4. Strangers are not present;
  5. A client requires confidentiality.

In addition to the attorney-client privilege there is another privilege which can come into play around internal investigations. It is the attorney work-product doctrine. Keltner noted, “The attorney-client privilege and the attorney work-product doctrine are often asserted interchangeably. While there is some overlap between the two, the attorney-client privilege is significantly different than the attorney work-product doctrine.” Moreover as “codified in Fed R.Civ. P. 26(b)(3), [the attorney/work product] provides a qualified protection to materials prepared by party’s counsel or other representative in the anticipation of litigation.” The doctrine exists “because it permits lawyers to “work with a certain degree of privacy, free from unnecessary intrusion by opposing parties . . .””

Three key takeaways:

  1. Note the differences in the attorney-client privilege and attorney work-product doctrine.
  2. Both can be waived intentionally or through inadvertent conduct.
  3. Take care on attorney work-product outside the U.S., where there may be no privilege at all.
Categories
Sunday Book Review

Sunday Book Review: July 30, 2023 – The On Writing True Crime 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, I continue my summer exploration of books on crime. Today, some top books which illustrate the draft of writing true crime.

  • Midnight in the Garden of Good and Evil by John Berendt
  • The Shadow of Death by Philip Ginsburg
  • The Wrong Man by James Neff
  • Couple Found Slain by Mikita Brottman

Resource

James Renner: 5 Books That Changed the Way I Write True Crime in CrimeReads.com

Categories
10 For 10

10 For 10: Top Compliance Stories For the Week Ending July 29, 2023

Welcome to 10 For 10, the podcast which brings you the week’s Top 10 compliance stories in one podcast each week. Tom Fox, the Voice of Compliance brings to you, the compliance professional, the compliance stories you need to be aware of to end your busy week. Sit back, and in 10 minutes hear about the stories every compliance professional should be aware of from the prior week. Every Saturday, 10 For 10 highlights the most important news, insights, and analysis for the compliance professional, all curated by the Voice of Compliance, Tom Fox. Get your weekly filling of compliance stories with 10 for 10, a podcast produced by the Compliance Podcast Network.

  • Zelensky warns about corruption. (FT)
  • Ukraine tackles corruption. (EuroNews)
  • New cyber disclosure rules go into effect. (AP)
  • Najib deposed in 1MDB case. (Bloomberg)
  • Cognizant investigation not outsourced. (WSJ)
  • DWS closes in on settling greenwashing charges. (FT)
  • Prosecutors want SBF jailed pre-trial. (WSJ)
  • DOJ revamps Crypto enforcement team. (WSJ)
  • Altice co-founder denies corruption. (Reuters)
  • US consultancies struggle in China after raids. (FT)

You can check out the Daily Compliance News for four curated compliance and ethics related stories each day, here.

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Kerrville Weekly News Roundup

Kerrville Weekly News Roundup: July 29, 2023

Welcome to the Kerrville Weekly News Roundup. Each week, veteran podcaster Tom Fox and his colleagues Andrew Gay and Gilbert Paiz get together to go over a couple of their favorite stories from the past week from Kerrville and the greater Hill Country. Sit back, enjoy a cup of morning coffee and listen in to get a wrap up of the Kerrville Weekly News. We each consider two of our favorite stories and talk about the upcoming weekend’s events which will enjoy or participate in this weekend.

In this episode, Tom, Gilbert and Andrew discuss the following stories which caught their attention over the past week.

  • Tom notes the trial date set for Harvey Bellew for his potential removal from office and shouts to the construction of the new county animal shelter. This weekend he will be nursing one of his pooches who had knew surgery this week.
  • Andrew discusses hospitality business in Kerrville and the Kerrville Visitors and Conventions Bureau which it supports. He reminds people that August 1 is the deadline for Leadership Kerr County Class 2023-24 (registration and information). Andrew is looking forward to seeing Oppenheimer this weekend.
  • Gilbert shouts out to the Back to School Bash and says he is tired of the Anti-LGBTQ protested outside the Library. He says he is staying inside this weekend.

Resources

Tom Fox on LinkedIn

Gilbert Paiz on LinkedIn

Andrew Gay on LinkedIn

Texas Hill Country Podcast Network

Categories
31 Days to More Effective Compliance Programs

One Month to More Effective Reporting and Investigations – Miranda Warnings for Employees?

Must an investigator warn an employee that concealing information from company lawyers conducting an internal FCPA investigation could be a federal crime? Even if the company attorneys provided the now standard corporate attorney Upjohn warning? Does a company attorney asking questions morph into a de facto federal agent during an internal company investigation regarding alleged FCPA violations and is the attorney thereby required to provide a Miranda warning to employees during said investigation?

Employees who are subject to being interviewed or otherwise required to cooperate in an internal investigation may find themselves on the sharp horns of a dilemma requiring either (1) cooperating with the internal investigation or (2) losing their jobs for failure to cooperate by providing documents, testimony or other evidence. Many U.S. businesses mandate full employee cooperation with internal investigations or those handled by outside counsel on behalf of a corporation. These requirements can exert a coercive force, “often inducing employees to act contrary to their personal legal interests in favor of candidly disclosing wrongdoing to corporate counsel.” Moreover, such a corporate policy may permit a company to claim to the government a spirit of cooperation in the hopes of avoiding prosecution in addition to increasing the chances of earning meaningful credit under the U.S. Sentencing Guidelines or the FCPA Corporate Enforcement Policy.

Three key takeaways:

  1. Make sure you provide an Upjohn warning.
  2. If an employee demands counsel to represent them during an internal investigation, who bears the cost?
  3. Always check state law requirements around internal investigations.
Categories
Compliance and AI

Compliance and AI – Gordon Firemark on AI & ChatGPT for Podcasters

What is the role of Artificial Intelligence in compliance? What about Machine Learning? Are you using ChatGPT? These questions are but three of the many questions we will explore in this exciting new podcast series, Compliance and AI. Hosted by Tom Fox, the award-winning Voice of Compliance, this podcast will look at how AI will impact compliance programs into the next decade and beyond. If you want to find out why the future is now, join Tom Fox on this journey to the frontiers of AI.

AI is becoming increasingly prevalent in the creative industry, and with it comes a range of legal implications. Tom Fox and Gordon Firemark recently discussed the legal implications of AI and how it can be used to create deceptive and misleading content on their podcast, Absolutely!

Tom and Gordon believe that creatives should be fairly compensated for their work and that children should be taught about the business side of art. As Tom puts it, “If someone creates something of value, they should receive fair compensation for it.” They also advocate for exposing children to different ideas and lifestyles.

AI has the potential to create deep fake videos and audio, which can be difficult to distinguish from the real thing. This technology has the potential to be used to create deceptive and misleading content, which could have legal implications. For instance, the Federal Trade Commission has rules and other regulations that come into play when dealing with false advertising issues at a state level.

Additionally, intellectual property issues can arise when AI is used to summarize a book, as the courts and Copyright Office have stated that AI-generated material is not copyrightable. The recent Supreme Court ruling in the Andy Warhol Foundation versus Lynn Goldsmith case found that the use of the photograph was not transformative enough and was commercial in nature, thus the photographer had a valid copyright claim.

Tom and Gordon are both planning to attend Podcast Movement in Denver in late August. Gordon and another podcasting attorney named Lindsay Bowen will be presenting together on either a contract tear down or a mock negotiation of a deal for creatives. The panel will discuss common legal issues that need to be negotiated and worked out in those kinds of deals.

AI is a powerful and effective tool, but it is important to be aware of the potential legal implications that come with it. Creatives should be fairly compensated for their work and children should be exposed to different ideas and lifestyles. For more information on AI and the legal implications, make sure to check out Tom and Gordon’s presentation at Podcast Movement in Denver.

Key Highlights

·      AI and Chat GPT

·      AI and Copyright Issues

·      Fair Compensation for Creatives

·      Legal Issues in Art

Resources

Gordon Firemark on LinkedIn

Firemark Law Firm

Tom Fox

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Categories
Daily Compliance News

Daily Compliance News: July 28, 2023 – The New Cyber Disclosure Rules Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance brings to 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.

  • Zelensky warns about corruption. (FT)
  • New cyber disclosure rules go into effect. (AP)
  • Najib deposed in 1MDB case. (Bloomberg)
  • Cognizant investigation not outsourced. (WSJ)