In today’s edition of Daily Compliance News:
Categories
Lead Your Team Well
I’ve had the Crosby, Stills, Nash and Young song “Teach Your Children” in my head this week, which made me ponder about how we need to also “lead our team well.”
“You who are on the road, must have a code that you can live by” which I believe is servant leadership.
We don’t often talk about leadership, or have leadership training opportunities for ourselves or our team in internal audit, but these skills are some of the most important ones for us to acquire and develop. Exactly the sort of thing we work on in the CAE Forum.
When we show up as a servant leader, productivity increases, we work less, have less stress and you “can look at them and sigh, and know they love you.”
I can’t cover everything in one episode, so here is a great leadership training opportunity for you and your team. Make sure to share this with your whole team … and it’s free. When you learn and implement these four secrets you will see an increase productivity.
4 Secrets to Leading Productive and Thriving Audit Teams
Tuesday, June 30, 2020 · 9:00 AM PDT
https://www.bigmarker.com/crisk-academy/4-Secrets-to-Leading-Productive-and-Thriving-Audit-Teams
Here’s to leading your team well this next week!
In the Episode, I am joined by Stanley Foodman, President and CEO of Foodman CPAs & Advisors. He is a bilingual professional that specializes in Forensic Accounting, Complex Tax and Financial Institution Compliance. Foodman is a recognized forensic accountant and litigation support practitioner who specializes in complex tax matters, commercial and civil litigation, financial crimes investigation and defense as well Corporate Governance and financial institution compliance matters. Foodman has served as expert witness and forensic accountant for some of the nation’s most challenging and high-profile economic crimes. Foodman is a JD Supra Readers’ Choice author. His articles have appeared in international and domestic banking journals, newspapers, magazines and on-line publications.
We visit about the intersection of the FCPA and Travel At. Some of the highlights include:
- What led to Foodman’s interest in the Travel Act?
- What led Food to write “Connecting The FCPA With The “Travel Act” In 2020”.
- How do you connect the Travel Act with the FCPA?
- The Travel Act originally intended by Robert Kennedy to help in his fight against organized crime. How does its current use build on that original premise?
- Why are there only a very few FCPA cases where the DOJ used the Travel Act?
- If a company is primarily liable under the FCPA is there any need for a Travel Act component?
Resources
See Stanley Foodman article “Connecting the FCPA with the “Travel Act” in 2020”
In today’s edition of Daily Compliance News:
- Wirecard CCO new CEO. (WSJ)
- Another reason for compliance – short sellers. (WSJ)
- Berman says will not step down. (YaHooFinance)
- What will Wirecard do? (FT)
In today’s edition of Sunday Book Review:
- The Whiskey Rebellion by William Hogeland
- The First Tycoon by T. J. Stiles
- The World in Depression, 1929-1939 by Charles P. Kindleberger
- Crashed: How a Decade of Financial Crises Changed the World by Adam Tooze
You may find yourself in the position that you will have to have some very frank discussions about what to expect in terms of costs and time outlays. While much of these discussions will focus on the investigative process and costs, these discussions will allow you to begin to talk about remediation going forward and begin to explain why money must be budgeted for the process.
Costs must be adequately discussed to set proper expectations. These include both direct costs and, even more importantly, a discussion of indirect costs to a company. Dan Chapman has noted that “the biggest cost to a company during an investigation is the diversion of management resources” and, as he further explained, “kind of 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, that’s 20% that’s not going towards revenue generating, shareholder value protecting activities.”
Three key takeaways:
- A serious allegation gets the attention of the Board of Directors and senior management. Use this time to move the compliance program forward.
- Be aware of how your investigation can impact and even inform your remediation efforts.
- How do you deal with the dreaded ‘where else’ question?
In this special emergency weekend episode (our first) Matt Kelly and Tom Fox take a deep dive into the attempt by AG William Barr to fire the US Attorney for the Southern District of New York, late on the evening of June 19. We consider its legality, what it means for both the SDNY, SEC and white-collar law enforcement going forward.
Resources
See Matt Kelly blog post on Radical Compliance, Turmoil for SEC, SDNY Leadership
Barr tries to fire US Attorney for SDNY. (NYT)
Jay Clayton nominated as new Attorney for SDNY. (CoinDesk)
Berman says will not step down. (WaPo)
Barr does not have authority to fire Berman under Court order appointing him. (Law and Crime)
In today’s edition of Daily Compliance News:
- Barr tries to fire US Attorney for SDNY. (NYT)
- Jay Clayton nominated as new Attorney for SDNY. (CoinDesk)
- Berman says will not step down. (WaPo)
- Barr does not have authority to fire Berman under Court order appointing him. (Law and Crime)
Who to suspend during any FCPA investigation is always a delicate question to answer and is never easy to answer. As the VW emission-testing scandal reverberated, it brought up some very knotty questions, which have continued bedeviled many a CCO or compliance practitioner in multiple areas. De-confliction is also an issue which continues to bedevil investigators and internal investigations. Mara Senn has said “That is a very case-by-case difficult question to answer, but in general, I think it’s better to keep them around for as long as you may need them. Once they’ve been fired or otherwise disciplined, really, even if you keep them around, they’re going to be less cooperative with you and possibly, if you fire them, not cooperative at all. You can require them to be cooperative in the termination agreement, but obviously in practice, cooperation can mean a lot of different things.”
De-confliction, involves the government asking a company to halt its own investigation for the government to be the first to interview witnesses. Former DAG Lanny Breuer posed four questions which every investigator must consider in the area of de-confliction. (1) Would complying with the request be consistent with directors’ and corporate officers’ fiduciary duty of oversight? (2) How can a company make decisions without speaking with its employees? (3) How will a delay affect the company’s other regulatory obligations? and (4) How can external counsel advise a company without knowing the facts? Companies hire external counsel to conduct thorough investigations, evaluate their clients’ conduct, and provide informed legal advice. These tasks can be difficult if not impossible to accomplish where external counsel have their hands tied behind their backs.
Three key takeaways:
- The decision on whom to discipline and when are critical decisions during any investigation.
- You should take a case-by-case approach.
- The “de-confliction” question can be quite troubling during an internal investigation.
As Trump has trouble drinking a glass of water and walking (Note-not at the same time), Covid-19 cases spike, the US Supreme Court hands down a landmark decision on protections for the LGBTQ community in the workplace, self-distancing Tom and Jay are back to consider some of the top compliance articles and stories over the past week.
- Mike Volkov takes the chickens out to roost in a 3-part series on the DOJ Antitrust Division charges of price-fixing and bid-rigging conspiracy. In Corruption Crime & Compliance. Jon Rausch weighs in on Dipping Through Geometries.
- How will WFH change business? Alison Taylor opines on the World Economic Forum
- What are the three ‘R’s’ of a speak up culture? Lloydette Bai-Marrow on the FCPA Blog.
- GOP stymies data privacy/data protection legislation yet again. Dave Uberti reports in the WSJ.
- It’s your culture stupid. Jim Nortz in CCI.
- How is Covid-19 changing internal audit. Matt Kelly explores in Radical Compliance.
- Viva La France. Dylan Tokar reports in the WSK Risk and Compliance Journal.
- Making sure compliance is not marginalized during financial dislocation. A plethora of authors contribute on NYU’s Compliance and Enforcement Blog.
- The ethical upside to WFH. In the Center for Ethical Leadership
- Interested in moving to the CCO chair? Check out my latest podcast series The Compliance Lifewhere I interview one CCO type for a month on their journey to the CCO chair and beyond. In on this month’s edition I visit with Ryan Rabalais. In this Part 3, he details some of key skills of a CCO. The Compliance Life is now available on iTunes.
- On Compliance and Coronavirus this week,: Scott Price on cyber security risks going forward; Gabe Gumbs data privacy and data protection during the economic dislocation and Covid-19; David McLaughlin joins me to discuss increasing automation to enhance compliance. Compliance and Coronavirus is available on iTunes here.
- On the Compliance Podcast Network, this month topic: internal reporting and investigations; all on 31 Days to a More Effective Compliance Program. This week’s offerings: Monday-The Investigative Team; Tuesday-investigative challenges; Wednesday-the witness interview; Thursday– issues in cross-border investigations; Friday– who and when to suspend. Note 31 Days to a More Effective Compliance Program now has its own iTunes channel.
- How does the Hundred Acre Wood inform compliance? Check out Tom’s 5-part blog post series on the FCPA Compliance and Ethics Blog. Monday-Tigger and Sales; Tuesday-Kanga, Roo & Ombudsman; Wednesday-Eeyore and corp legal; Thursday-Piglet and Finance; Friday-Winnie the Pooh as CECO.
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.