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The Hill Country

Hill Country Podcast – Zach Riffett – Leadership Kerr County Class 2023-24

Welcome to the award-winning The Hill Country Podcast. The Texas Hill Country is one of the most beautiful places on earth. In this podcast, Hill Country resident Tom Fox visits with the people and organizations that make this the most unique area of Texas. Join Tom as he explores the people, places, and activities of the Texas Hill Country. In this episode, Tom is joined by co-host Andrew Gay to find out more about the 2023-24 class for Leadership Kerr County.

Are you looking for a way to develop your leadership skills and make an impact in your community? Look no further than Leadership Kerr County! This nine-month program is designed to provide leadership training and development for people in the Kerr County area. With an August 1 deadline for applications, now is the perfect time to apply.

Today’s guest is Leadership Kerr County co-chair Zach Riffett and Andrew Gay is part of the steering committee. Zach is a financial planner with Edward Jones and has been in the Kerr County area for the past 10 years. He is passionate about making an impact in the community and is involved in several boards and committees, including PTO, United Way, and Chamber committees.

The program is highly regarded by other leadership programs in contiguous counties, and people in the Kerr County area can ask their peers and coworkers if they have been through the program. Last year’s Leadership Kerrville class was mostly women and had some amazing leaders. This year, the Chili Cook-Off is changing hands and there may be some shuffling of the days. The application has been updated to ask different questions and dig deeper into why people want to participate. However, the leadership, committee, and basic structure of the class remain unchanged.

Participants in the program will learn about the community and its ins and outs. There are 8 days in the program: Education Day, Local Government Day, Trip to Austin, Government Day, Economic Day, Tourism and Travel Day, Nonprofit Day, and Retreat. The retreat is a great opportunity for team building activities and breaking down guards and is held at Mo Ranch and takes place in the third week of September. Remember the deadline for application is August 1.

 Resources

Andrew Gay on LinkedIn

Tom Fox on LinkedIn

Leadership Kerr County-Information and Registration

Categories
Daily Compliance News

Daily Compliance News: July 26, 2023 – The Farewell to the Bird 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.

  • EY General Counsel calls it quits. (FT)
  • Musk ditches the Twitter bird. (BBC)
  • Chinese official given death sentence for accepting bribes. (Barron’s)
  • UBS fined for Credit Suisse imbroglio over Archegos. (NYT)
Categories
31 Days to More Effective Compliance Programs

One Month to More Effective Reporting and Investigations – Board Investigation Protocols

Many companies have an investigation protocol in place when a potential compliance violation or other legal issue arises. However, many Boards of Directors do not have the same rigor when it comes to an investigation, which should be conducted or led by the Board itself. The consequences of this lack of foresight can be problematic, because if a Board does handle an investigation right, the consequences to the company, its reputation and value can be quite severe. The SEC considers a variety of factors around corporate investigations including: Did management, the board or committees consisting solely of outside directors oversee the review? Did company employees or outside persons perform the review? If outside persons, have they done other work for the company?

Dan Chapman has said this is the time for a very frank conversation with your Board about what such an investigation will entail. Costs must be adequately discussed to set proper expectations. These include both direct costs and, what Chapman believes may be even more important, a discussion of indirect costs to the company. He noted, “the biggest cost to a company during an investigation is the diversion of management resources” and, as he further explained, “everything stops to focus on the investigation.” This indirect cost comes through largely the time commitment of senior management. He further explained, “if senior management has to commit 20% of their time to the investigation, that’s 20% that’s not going towards revenue generating, shareholder value protecting activities.”

Finally, Jonathan Marks has noted after notification of serious allegations, Boards should take the following steps:

• Consider creating a Special Committee to conduct the investigation;

• Establish a committee charter;

• Preserve the electronic and hardcopy documentation environment;

• Communicate with external auditors; and

• Plan potential communication with the SEC, DOJ, and the relevant stock exchange.

Marks also notes that while a special committee might be necessary in certain rare circumstances, the Board should try to avoid forming a special investigative committee to oversee the investigation if the Audit Committee is composed of independent and disinterested directors that are suited for the task. A special committee must be disbanded at some point (usually once the investigation is completed and before the restatement process begins), and the disbanding could become a complicated news item. Conversely, if the Audit Committee oversees the investigation, then, once the investigation is complete, they can pivot back to their normal role, which would include overseeing the actual restatement process. Investigations overseen by the Audit Committee also benefit from the positive relationship that the committee chair usually has with the audit partner of the company’s external auditor.

 Three key takeaways:

1. The Board should have a written protocol for investigations prepared in advance.

2. Any Board led investigation must be both credible and objective.

3. The investigation must be thorough but the Board can be cost effective.

Categories
Data Driven Compliance

Data Driven Compliance – AI Tech for Data Compliance, Part 1

Are you struggling to keep up with the ever-changing compliance programs in your business? Look no further than the award-winning Data Driven Compliance podcast, hosted by Tom Fox, is a podcast featuring an in-depth conversation around the uses of data and data analytics in compliance programs. Data Driven Compliance is back with another exciting episode The intersection of law, compliance, and data is becoming increasingly important in the world of cross-border transactions and mergers and acquisitions.

Data compliance risks are a major concern for organizations of all sizes as data collection and storage grows. A key is to prevent these risks by detecting misconduct before it occurs. AI technology is used to pinpoint risk and misconduct, providing context to alerts. Searching unstructured data is a critical process for organizations to identify and mitigate hidden risks, and the right technology is necessary to incorporate multiple file types and data sources. By equipping with the right processes and technology, organizations can proactively look for hidden risks and take preventative steps to ensure compliance.

Data has become much more ubiquitous and needs to be incorporated into business processes. AI data cleansing helps to reduce false positives and provides context to alerts generated by the system. AI capabilities are divided into three categories: removing duplicative content, detecting risk, and providing context. AI-powered data cleansing strips out non-human generated content and focuses on what was sent by an individual. This helps to lower false positives in alerts generated by the system.

Regulators are now focusing on prevention as part of best practices compliance programs. A key is to prevent misconduct before it occurs by setting expectations that this behavior is not tolerated in the organization. Compliance teams can quickly take action and remediate activity when an incident is found. Consistent approach by compliance teams in quickly remediating bad behavior creates a culture where misconduct is not tolerated.

Unstructured data is data that doesn’t have a hierarchy associated with it, such as Word documents, emails, and text messages. Your app built on unstructured data analytics problems, such as responding to government requests, cyber breach response, and compliance monitoring. Organizations should have processes in place to proactively look for hidden risks. Technology is needed to search through unstructured data to find hidden risks.

 Key Highlights

·      Data Compliance Risks

·      Data Cleansing Importance

·      Preventing Misconduct

·      Detecting Risk with AI

·      Searching Unstructured Data

 Resources: 

Tom Fox 

Connect with me on the following sites:

Instagram

Facebook

YouTube

Twitter

LinkedIn

Categories
Daily Compliance News

Daily Compliance News: July 25, 2023 – The Ted Cruz Be Damned 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.

  • Chinese fight seed corruption. (WSJ)
  • UM Law bans using ChatGPT in applications. (Reuters)
  • Another ex-con embraces compliance. (WSJ)
  • Barbie No. 1 movie for the weekend. (NYT)
Categories
31 Days to More Effective Compliance Programs

One Month to Better Reporting and Investigations – How an Investigation Informs Remediation

There is nothing like an internal whistleblower report about a FCPA violation, the finding of such an issue or (even worse) a subpoena from the DOJ to trigger the Board of Directors and senior management attention to the compliance function and the company’s compliance program. Such an event can trigger much gnashing of teeth and expressions of outrage followed immediately by proclamations “We are an ethical company.” However, it may well be the time for a very serious reality check.
In addition to robust investigation, a company must engage in remediation of the offending conduct. The 2020 Update to the Evaluation of Corporate Compliance Programs mandated the additional significance of this by providing that this process must be considered “both at the time of the offense and at the time of the charging decision and resolution”. When you consider the strictures around continuous monitoring and continuous improvement in compliance programs it is clear why this analysis is so important. Obviously, a key test of any compliance program is when a deficiency is found and a violation occurs. The question then becomes, what did you do about it.
But from the DOJ (and Securities and Exchange Commission) perspective, the key is to use the information to both fix the problem so that it does not occur again but also improve your compliance regime.

Three key takeaways:

  1. How does your investigation inform your remediation plan?
  2. A compliance program failure offers a way to upgrade your regime.
  3. Your investigative team must inform your remediation team.
Categories
The Ethics Experts

Episode 151 – Daniel Christmas

In this episode of The Ethics Experts, Nick welcomes Daniel P. Christmas. Daniel P. Christmas was appointed vice president and chief compliance officer in December 2021. In this role, Christmas is responsible for leading Corning’s Global Compliance organization, managing compliance policies and processes to ensure Corning’s Code of Conduct and Values are brought to life worldwide. He is also responsible for advising internal clients on a variety of compliance and regulatory areas, including government investigations, government contracts, and export controls and sanctions.

Categories
FCPA Compliance Report

FCPA Compliance Report: Gordon Firemark – Defending Creative Rights: Protecting Podcasts from AI & GPT

Welcome to the award-winning FCPA Compliance Report, the longest running podcast in compliance. In this episode, Tom welcomes back the Lawyer to Podcasters – Gordon Firemark.

With the increasing prevalence of AI and Chat GPT technologies in the podcasting world, legal implications must be addressed. Tom and Gordon discuss potential legal issues, such as AI accessing private information and Chat GPT generating false information. To further this discussion, Firemark will be presenting at Podcast Movement 2023 on the importance of protecting freedom of expression in the arts. It is essential for creatives to understand their rights and obligations, as well as the potential impact of AI and Chat GPT on their work, to ensure they are fairly compensated for their creative efforts. This podcast episode provides valuable insight into the changing dynamics of the podcasting world and the need for creatives to remain informed.

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

Instagram

Facebook

YouTube

Twitter

LinkedIn

Categories
All Things Investigations

All Things Investigations: Episode 32 – Update on Trump Indictment, Target Letter and Michigan Electors with Kenyen Brown and Kevin Carroll

Tom Fox and guests Kenyen Brown and Kevin Carroll take a deep dive into the legal drama surrounding President Trump. On this week’s episode of All Things Investigations their seasoned attorneys walk us through three major legal events that unfolded in a momentous week. They uncover the delicate balance of political and legal intrigue, explain court strategies, and reveal the ins and outs of the judicial process.

 

Kevin Carroll and Kenyen Brown are partners at Hughes Hubbard & Reed. Kevin served as a senior counsel to the House Homeland Security Committee. Kenyen is a former United State Attorney. 

You’ll hear Tom, Kenyen and Kevin discuss:

  • The surprising lack of preparation on President Trump’s defense team’s part. They were surprised by the lack of a structured legal argument and the pleading for a trial after the election.
  • Is there any merit to the defense’s claim that the amount of information to be reviewed necessitates a delay? Kenyen and Kevin agree that the defense might be asking for too long of a delay; however, they do not rule out a timeline extension due to the volume of documents involved.
  • Trump’s defense does not have a large legal team to sift through the discovery material.
  • They examine the defense strategy, in particular the call for the trial not to be held before the election. Such a privilege is not usually granted to typical defendants.
  • Kevin voices his concerns over the defense’s public statements, questioning the judge’s hesitance in issuing gag orders. Kenyen speculates that the choice of the federal district for this case could be strategic on the part of the Justice Department, aiming for a more credible verdict.
  • They discuss Trump’s announcement about receiving a target letter from Jack Smith, and its implications. They believe that it indicates that the Special Counsel believes there is already probable cause to indict Trump.
  • Tom wonders if Smith’s motivation was to pre-empt any indictment that might have been made by the state of Georgia.
  • Kevin speculates that the Justice Department might have been embarrassed by the January 6 Committee progressing far ahead of their investigation. He posits that it would be even more mortifying if a smaller District Attorney’s office managed to build a significant conspiracy and racketeering case against the President while the DOJ was lagging behind.
  • Kenyen emphasizes that justice should be their main focus and he would hope that the pace of Smith’s actions is determined by the facts and evidence he has, rather than being influenced by a state prosecutor’s progress.
  • Would the District of Columbia be an appropriate venue for a case involving the January 6 insurrection? Kevin believes so since most of the activity relating to January 6, including the preparation and the event itself, happened in DC.
  • Tom asks Kenyen and Kevin for their views on this matter of the recent announcement from the Attorney General of Michigan, who charged a series of persons claiming to be electors from Michigan but who were in fact fraudulent. 
  • Kevin finds it interesting that Federal Prosecutor Smith is also examining the fake elector scheme. He labels the indictment as apt and defines the false claims of electoral victory as fraudulent.
  • Kenyen remarks on the difficulties of prosecuting election fraud cases due to allegations of partisanship. He underlines the necessity to protect the integrity of the election system. 
  • Kevin discusses an incident in Michigan, where meetings were apparently recorded in which fake electors were selected.

 

KEY QUOTES

“I would hope that federal authorities are not motivated by what might be taking place in a parallel state jurisdiction. In other words, your master in these circumstances is supposed to be justice…” – Kenyen Brown

 

“Having investigated a few instances of election fraud cases in Alabama that ended up not being accurate or true, it’s almost a no win for the prosecutor because there are going to be allegations of partisanship regardless of the outcome of the merit of your case. Nonetheless, you do it to protect the integrity of the election system.” – Kenyen Brown

 

“The only thing worse than getting a target letter from the Justice Department is when everybody else who was involved in the crime, except you, didn’t get a target letter, they suggest that everybody’s cooperating against you.” – Kevin Carroll

 

“It’s super interesting because we all know that the federal Prosecutor Smith is also looking at the fake elector scheme because he specifically subpoenaed some individuals who were electors or state election officials in the different states that the results were in question legitimately or illegitimately. It’s a very apt indictment. It’s a fraud.” – Kevin Carroll

 

Resources

Hughes Hubbard & Reed website

Kevin Carroll on LinkedIn

Kenyen Brown on LinkedIn

Categories
Daily Compliance News

Daily Compliance News: July 24, 2023 – The Struggling in China 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.

  • DOJ revamps Crypto enforcement team. (WSJ)
  • Altice co-founder denies corruption. (Reuters)
  • US consultancies struggle in China after raids. (FT)
  • GOP release FBI report showing no Biden corruption in Ukraine. (Bloomberg)