Categories
FCPA Compliance Report

Mike DeBernardis on Compliance Developments from Q1 2022


In this episode of the FCPA Compliance Report I welcome back Mike DeBernardis, a partner at Hughes Hubbard, about some of the key developments in ethics compliance and FCPA from Q1 2022. Highlights include:

  •  Q1 brought resolutions that were excellent examples for training and increasing understanding of compliance issues.
  •  One of the more difficult aspects of compliance is scoping investigations.
  • View input from your monitor as an opportunity to truly improve your processes, procedures, and controls. Having a positive relationship with them is hugely valuable.
  • Developing an investigation plan and protocols is an iterative process.
  • Changes to the SEC Whistleblower program.
  • Anti-corruption implications of the Russian invasion of Ukraine.

Resources
Hughes Hubbard & Reed website
Mike DeBernardis 
Coburn and the Attorney/Client Privilege

Categories
Daily Compliance News

June 13, 2022 the Wells Fargo Under Investigation (Again) Edition


In today’s edition of Daily Compliance News:

  • Senate bill to have CFTC regulate crypto. (WaPo)
  • Wells Fargo is under criminal investigation for fraudulent interviews. (NYT)
  • SEC begins an investigation into Goldman Sachs over ESG reporting. (WSJ)
  • Finance teams prepare for new ESG regs. (WSJ)
Categories
Blog

Transforming Training From Boring to Brilliant

Welcome to a special five-part blog post series on the New Traliant, sponsored by Traliant, LLC. Over this series, we will discuss what is new at the company and key issues that Traliant is helping to lead and define the online training industry in going forward. I will visit with John Arendes, Chief Executive Officer (CEO), on what is new at Traliant and what the Department of Justice (DOJ) has communicated to the compliance community regarding its expectations around online training and communications; Maggie Smith, Vice President of Human Resources, on the role of diversity, equity and inclusion (DEI) in your corporate environmental, social and governance (ESG) program; and Scott Schneider, Head of Content Development, on your Code of Conduct and anti-corruption training. In Episode 1, I visit with John Arendes on the New Traliant.
Arendes was brought on to lead the company in late 2021. It has always been known as one of the most innovative online training companies with its fabulous tagline of “Boring to Brilliant.” Arendes went on to note that the “good news is there has been extremely strong leadership but one of the co-founders and the other co-founder was getting ready to do the same.” He went on to relate that he was brought into to build upon their success.
The biggest challenge in the online training arena is how do you make compliance training more engaging, and how do you really design a product suite that changes behavior. Indeed, this is a challenge that Arendes has worked on at other compliance organizations, training engagement. Arendes said, “what has really been the secret sauce in terms of engagement is making the courses applicable to the environment in which one takes it.” He provided the following example, “we have a preventing discrimination and harassment course that is designed for healthcare, and it is in this health care environment, which is much different than those that work in a retail environment or an or office environment. When individuals can see their environment replicated in a hospital setting in a doctor’s office, working with nurses, and creating real life scenarios; that is what makes the Traliant training much more engaging.” Further, he noted, “We’ve had customers tell us that they look forward to our next season, with new scenarios, real life scenarios taken from the news.” When employees take a Traliant online training module, “they can relate to it and that has really been a significant factor in why our success has been so strong.”
A key area of Traliant innovation has been in the area of how you make behavioral changes through online training. Arendes said that a key from the online training perspective is to have an impact around the design of training so that it engages employees. He pointed to Code of Conduct training and noted that a key driver is “how do we create code of conducts that represent the environment in which that company culture is based on? How does an organization think about anti-bribery/anti-corruption and all those other components that the DOJ wants organizations to look at?” He feels it should be based on “real life scenarios so that people understand clearly, what is required of them, not just from reading a document.”
Another change has been in damages. Not that the DOJ has increased fines and penalties but that reputational damages has become as important or even more important than regulatory fines and penalties. This really speaks to overall corporate culture and how a company expresses the importance of what they are doing simply beyond “just training.” This
has led to many companies embracing the concept of not simply online training but online education. He believes this is starting to change culture, as employees “realized that the organization had taken the time to reflect and think about their own mission, what the employees hear, is that this engagement was being rolled out.” He noted that the challenge for companies is how to make that transition, from ‘training’ to ‘education’. Traliant has gone a long way towards solving this because it is able to do these online educational “customizations, that allow organizations to express their culture and the importance of why this is in their culture at a very cost-effective way.”
Join us for our next episode where we look at current DOJ expectations around compliance training.
Check out the podcast with John Arendes here.

Categories
Sunday Book Review

June 12, 2022 the Ulysses edition


In today’s edition of Sunday Book Review:

  • James Joyce Ulysses: A Study by Stuart Gilbert
  • 100 Years of James Joyce Ulysses by Colm Tobin
  • The New Bloomsbury Book: A Guide Through Ulysses by Harry Blamires
  • Ulysses: A Reader’s Guide by Daniel Mulhall
  • Ulysses by James Joyce
Categories
Popcorn and Compliance

MCU Series – Avengers-Infinity War


In this podcast series, two complete MCU fans, Tom Fox, founder of the Compliance Podcast Network, and Megan Dougherty, co-founder of One Stone Creative, indulge in a passion for all things in the Marvel Cinematic Universe by re-watching each movie and then podcasting on every movie in the MCU. If you want to indulge in your love for the MCU with two fans passionate about all things MCU, this is the podcast series for you. For this offering, we consider MCU Series Avengers-Infinity War.
Some of the highlights include:
Ø  The story synopsis.
Ø  What are the key plot points?
Ø  What were some of our favorite cookies?
Ø  How does this movie fit into the overall MCU?
Ø  How is this movie an homage to prior non-MCU movies?
**Next up in our series Avengers-End Game**

Categories
Daily Compliance News

June 11, 2022 the Sandberg Under Investigation Edition


In today’s edition of Daily Compliance News:

  • Mozambique ex-minister extradited to US. (Bloomberg)
  • When police corruption is real. (Guardian)
  • How bad is it? Starbucks considering ‘hardening’ stores. (NYT)
  • Sandberg under Meta investigation. (WSJ)Meta
Categories
Presidential Leadership Lessons for the Business Executive

Presidential Leadership Lessons from Woodrow Wilson, Part 1-Up to Presidency


Richard Lummis and Tom Fox begin a two-part series on leadership lessons from Woodrow Wilson. In this Part 1, we look at lessons from Wilson’s formative years in growing up in the South, his educational career, his academic profession and thought leadership, his Presidency at Princeton, his governorship of New Jersey, and the Presidential election of 1912. In Part 2, we will take up his Presidential years.
Highlights of this podcast include:

  1. Intro of Woodrow Wilson
  2. Discussion on the impact of slavery on Wilson and being a Southerner
  3. Academic Work History
  4. Professor at Johns Hopkins
  5. Publication of Congressional Government
  6. Move to Wesleyan
  7. Move to Princeton in 1992-textbooks on government
  8. President of Princeton-1902
  9. Achievements
  10. Seeds of character defects revealed?
  11. Health issues
  12. Governor of New Jersey
  13. Surprise Candidate- “it came to me unsought, unanimously, and without pledges to anybody about anything.”
  14. Reformist and turned back the Bosses?
  15. Nomination and Campaign of 1912
  16. Dark Horse Candidate
  17. Impact of William Jennings Bryan
  18. New Freedom platform – breaking up trusts and lowering tariff rates
  19. Leadership Lessons

Resources
Ten Ways to Judge a President
Woodrow Wilson Quotes
Woodrow Wilson-a Failure in Leadership
How Woodrow Wilson Lost the Peace
Woodrow Wilson-Life Before the Presidency
13 Leadership Lessons from WWI

Categories
Greetings and Felicitations

John Aceti on Profiles in Leadership


In this episode of Greetings and Felicitations, I visit John Aceti, author of 7 books about people and places in the Hill County. We discuss John’s most recent book Profiles in Leadership. Highlights include:
·       John’s storytelling skill.
·       His endless curiosity.
·       The leadership styles of 18 persons he interviewed for the book.
·       What are their leadership philosophies?
·       What strategies did they use to succeed in their individual career fields?
·       What’s next for John.
Resources
Profiles in Leadership on Amazon

Categories
Daily Compliance News

June 10, 2022 the $700MM Stolen Edition


In today’s edition of Daily Compliance News:

  • $700 million stolen from Iraqi national bank. (News18)
  • Blatter and Plantini go to trial. (Reuters)
  • Why would Texas investigate Twitter? Politics, why else. (NYT)
  • SEC opens 2nd Ericsson corruption investigation. (WSJ)
Categories
Everything Compliance

Episode 101, the Glencore Edition


Welcome to the only roundtable podcast in compliance as we celebrate our second century of shows. In 2021, Everything Compliance was honored by W3 as a top talk show in podcasting. In this episode, we have the quintet of Jonathan Marks, Karen Woody, Jonathan Armstrong, Tom Fox and Matt Kelly. In this episode, we take up the Glencore FCPA settlement. We conclude with our fan favorite Shout Outs and Rants.

1. Karen Woody takes a deep dive into the history of Glencore, from its founding by Marc Rich in the 1980s through the allegations of bribery, corruption and market manipulation which led to the FCPA and CFTC settlements.  Woody shouts out the US National and state parks systems which provide much needed green spaces for Americans.

2. Matt Kelly takes a deep dive into CCO certification issue and what it might mean for individual CCO criminal liability going forward.  Kelly has a dual shout out and rant. He shouts out to the Boston Celtics for having the greatest NBA Finals-Game 1 comeback to win the game. He rants about the DOJ failing to post the speech by AAG Kenneth Polite where he announced the new requirement for CCO certification.

3. Jonathan Marks explores the role of internal audit in contributing to the compliance failures and what IA can do to facilitate a culture change at the company. Marks also has a dual shout out and rant. He shouts out to the Philadelphia Phillies for firing manager Joe Girardi and rants about Glencore’s Press Release about their updated compliance which he rants “says nothing”.

4. Tom Fox considers the dual monitor aspect of the resolution and the requirements of the monitorships. Fox reads out the names of the students and teachers who were killed in the recent massacre in Uvalde,  TX.

5. Jonathan Armstrong explores the settlement from the UK perspective and considers, what if any charges against individuals that the UK-Serious Fraud Office might bring. Armstrong shouts out to the Queen’s Platinum Jubilee and Sir Andy Murray for speaking out against the murder of school children. Murray is a survivor of a similar event in Scotland.

The members of the Everything Compliance are:
•       Jay Rosen– Jay is Vice President, Business Development Corporate Monitoring at Affiliated Monitors. Rosen can be reached at JRosen@affiliatedmonitors.com
•       Karen Woody – One of the top academic experts on the SEC. Woody can be reached at kwoody@wlu.edu
•       Matt Kelly – Founder and CEO of Radical Compliance. Kelly can be reached at mkelly@radicalcompliance.com
•       Jonathan Armstrong –is our UK colleague, who is an experienced data privacy/data protection lawyer with Cordery in London. Armstrong can be reached at jonathan.armstrong@corderycompliance.com
•       Jonathan Marks is Partner, Firm Practice Leader – Global Forensic, Compliance & Integrity Services at Baker Tilly. Marks can be reached at jonathan.marks@bakertilly.com

The host and producer, ranter (and sometime panelist) of Everything Compliance is Tom Fox the Voice of Compliance. He can be reached at tfox@tfoxlaw.com. Everything Compliance is a part of the Compliance Podcast Network.