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FCPA Compliance Report

FCPA Compliance Report: Spotlight on Executive at Risk: Latest Updates on The DOJ, OFAC, FCPA, and AML

Welcome to the award-winning FCPA Compliance Report, the longest running podcast in compliance.

In this edition of the FCPA Compliance Report, Tom welcomes back Miller & Chevalier attorneys Executives at Risk team, including Lauren Briggerman, Katherine Pappas, Ian Herbert, and their newest colleague Laura Deegan.

We dive into key compliance and enforcement topics such as the new DOJ whistleblower initiative, recent OFAC sanctions and export controls, key FCPA enforcement actions focusing on individual liability, and notable AML developments, particularly within the cryptocurrency sector. The discussion highlights the evolving landscape of corporate compliance and the increased need for robust internal reporting and proactive compliance measures.

Highlights in this Episode:

  • DOJ Whistleblower Initiative
  • OFAC Sanctions and Export Controls
  • FCPA Enforcement Actions and Developments
  • AML Developments and Binance Case

 

Resources:

Miller & Chevalier Chartered

Lauren Briggerman

Katherine Pappas

Ian Herbert

Laura Deegan

Executives at Risk, Summer 2024

Tom Fox

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Everything Compliance

Everything Compliance: Episode 138, The AI in The EU Edition

Welcome to the only roundtable podcast in compliance as we celebrate our second century of shows. We have a plethora of topics for this episode, including the DOJ Whistleblower Incentive Program, a look at Solar Winds, a new Caremark decision, an effective internal audit and the new AI law in the EU, which we slice and dice from a variety of perspectives.

We have the full quintet of Matt Kelly, Jonathan Armstrong, Karen Woody, Jonathan Marks, and our newest panelist, Karen Moore, all hosted by Tom Fox.

1. Jonathan Armstrong takes a look at the new EU Low regarding AI. He shouts out to Sir Andy Murray for a great career and life.

2. Matt Kelly asks multiple questions about the form of the guilty plea and what it may mean for compliance professionals going forward. He rants about Wyoming Senator Cynthia Lummis and her legislation for a Strategic Bitcoin Reserve.

3. Karen Moore considers the Centene case, which denied a Caremark claim. She rants about German TV only showing German competitors in their Olympic coverage and she shouts out to the perseverance of Ukrainians, where students attending class at the Kyiv School of Economics will stop class during an air raid and start class again when the All Clear is given.

4. Tom Fox shouts out to Simone Biles and the beauty, power, and grace of women’s gymnastics at the Olympics, going back to Olga Korbut.

5. Karen Woody takes a deep dive into the district court’s recent dismissal of the SEC complaint against SolarWinds. She shouts out to President Biden for bringing hostages home from Russia and a job well done.

6. Jonathan Marks reviews what makes internal controls effective.

The members of Everything Compliance are:

The host, producer, rantor (and sometimes 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 award-winning Compliance Podcast Network.

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Compliance Into the Weeds

Compliance into the Weeds: The DOJ Whistleblower Incentive Program

The award winning, 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.

Looking for some hard-hitting insights on compliance? Look no further than Compliance into the Weeds!

In this episode, Tom Fox and Matt Kelly take a deep dive into the recently announced Department of Justice (DOJ) Whistleblower Incentive Program.

Last week, the DOJ announced a whistleblower pilot program, offering monetary rewards to whistleblowers who report corporate misconduct. Whistleblowers can receive up to 30% of the net proceeds of a settlement resulting from their tip. The program covers various types of corporate crime, including bribery, healthcare fraud, and Foreign Corrupt Practices Act (FCPA) violations.

This program puts pressure on compliance programs to quickly investigate and address reported misconduct. It also raises questions about how whistleblowers will be rewarded in cases where there is a declination or non-prosecution agreement. The SEC case involving a whistleblower award highlights the importance of handling whistleblower reports effectively.

Key Highlights:

  • DOJ Announces Whistleblower Pilot Program
  • Covering Various Types of Corporate Misconduct
  • Tension Between Self-Reporting and Whistleblower Reporting
  • Recent SEC whistleblower award as a cautionary tale

Resources:

Matt in Radical Compliance 

Tom

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Daily Compliance News

Daily Compliance News: August 7, 2024 – The (Don’t) Bring Out Your Dead Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings you compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee and listen 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.

In today’s edition of Daily Compliance News:

  • Funeral Parlors in China are under investigation for corruption. (South China Morning Post)
  • Did KKR founders get something for nothing?   (WSJ)
  • Concerns with new DOJ whistleblower bounty program. (WSJ)
  • Can a FCPA violation be a RICO claim?  (Law360)

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Blog

DOJ Whistleblower Pilot Program: Transforming the Compliance Landscape

In a world where corporate integrity and accountability are more crucial than ever, the Department of Justice (DOJ) ‘s Whistleblower Pilot Program announcement marks a pivotal moment for compliance professionals. This initiative promises to reshape how we approach whistleblowing, corporate misconduct, and organizational culture. Let’s dive into the details and implications of this program, focusing on how it impacts compliance officers, whistleblowers, and corporate governance.

Deputy Attorney General Lisa Monaco said of the Whistleblower Pilot Program, “With this program, we’re doubling down on a proven strategy to ferret out criminal activity that might otherwise go unreported. Law enforcement has long offered rewards to coax tipsters to report crimes — from the “Wanted” posters of the Old West to the reforms in Dodd-Frank that created whistleblower programs at the SEC and the CFTC.” However, she cautioned, “those programs — by their very nature — are limited in scope. They only cover misconduct within those agencies’ jurisdictions. The same is true for similar programs run by the IRS and FinCEN. And qui tam actions, which offer whistleblowing incentives, are available only for fraud against the government.” The DOJ “corporate enforcement program is rooted in using carrots and sticks. Today’s announcement builds on our other efforts to incentivize reporting of corporate misconduct to the government.” Part of those carrots is to reward those “under these disclosure programs — both our corporate voluntary self-disclosure programs and the whistleblower initiative we’re announcing today — you have to tell us something we didn’t already know. With few exceptions, you must be first in the door.”

The Whistleblower Pilot Program incentivizes individuals to report corporate misconduct directly to the authorities. It offers financial rewards similar to existing programs at agencies like the Securities and Exchange Commission (SEC). Under the Whistleblower Pilot Program, whistleblowers are now eligible for a financial award. The award may be up to 30% of the first $100 million in net proceeds forfeited and up to 5% of any net proceeds forfeited between $100 million and $500 million. This framework encourages individuals to come forward with information about corporate wrongdoing, particularly in areas such as the Foreign Extortion Prevention Act (FEPA) and the Foreign Corrupt Practices Act (FCPA).

From the whistleblower’s perspective, the Whistleblower Pilot Program provides a powerful incentive to report misconduct. The promise of financial rewards and legal protections can motivate individuals who might otherwise fear retaliation or lack confidence in their employer’s internal reporting mechanisms. The program is designed to cover various types of corporate crime, ensuring that potential whistleblowers have a direct channel to report wrongdoing, even when internal channels might fail.

For compliance officers, the Whistleblower Pilot Program introduces new dynamics into the compliance landscape. On the one hand, it underscores the importance of robust internal compliance programs that can effectively handle whistleblower reports. On the other hand, it creates potential challenges, as employees might need help to bypass internal reporting mechanisms in favor of direct reporting to the DOJ, mainly when financial incentives are involved. The Whistleblower Pilot Program raises an interesting dilemma for compliance officers and corporate management: How do you maintain a solid internal reporting culture when employees have a lucrative alternative in external reporting?

The answer lies in strengthening internal reporting mechanisms and fostering a culture of trust and transparency. Companies must ensure that their whistleblower hotlines and reporting channels are accessible, confidential, and effective. Employees should feel confident that their reports will be taken seriously and addressed promptly without fear of retaliation. It also reiterates that investing in anti-retaliation training and policies is crucial. Employees must know that the organization values their input and that speaking up will have no negative consequences. Training managers and supervisors to handle reports sensitively and ensuring that whistleblowers receive feedback on the status of their reports can reinforce this trust.

With the potential for whistleblowers to report externally, companies must act quickly and decisively when handling internal reports. The Whistleblower Pilot Program highlights the need for efficient triage and investigation processes to swiftly assess and address misconduct allegations. This requires clear protocols and collaboration among compliance, legal, and HR departments to ensure timely resolutions.

The Whistleblower Pilot Program also addresses the tension between whistleblower reports and voluntary self-disclosure by companies. The DOJ has adjusted its policies to allow companies to receive credit for voluntary self-disclosure, even if a whistleblower has already reported the matter to the authorities. However, this requires that companies disclose the misconduct within 120 days of the internal report. This adjustment emphasizes the importance of timely action and reinforces the value of self-reporting as part of an effective compliance program.

The recent SEC whistleblower award case is a cautionary tale for companies navigating this new landscape. In this case, a whistleblower who reported misconduct internally was ignored, leading them to report the issue to the SEC. The company eventually self-disclosed but lacked cooperation, highlighting the risks of inadequate internal handling of whistleblower reports. This scenario underscores the need for companies to take internal reports seriously and proactively investigate and address issues before they escalate externally.

The Whistleblower Pilot Program reinforces organizations’ need for a robust speak-up culture. Compliance officers play a crucial role in fostering this culture by promoting open communication, ensuring that employees understand the importance of reporting misconduct, and providing them with the tools and support they need to do so safely.

Compliance officers must also engage senior management and the board of directors to ensure alignment on the importance of a strong compliance culture. This includes advocating for the necessary resources and support to maintain effective reporting mechanisms and demonstrating the value of proactive compliance efforts in mitigating risks and enhancing corporate reputation.

Compliance officers must continuously assess and improve their programs in this evolving landscape. This includes staying informed about regulatory developments, analyzing whistleblower reports to identify trends and areas for improvement, and adapting strategies to address emerging risks and challenges. The Whistleblower Pilot Program marks a significant step in promoting corporate accountability and transparency. It presents challenges and opportunities for compliance professionals to strengthen internal programs and foster a culture of integrity. By prioritizing trust, transparency, and effective reporting mechanisms, companies can successfully navigate this new era, ensuring they are well-prepared to address misconduct and protect their reputations. As compliance officers, embracing these changes and championing a culture of accountability will be key to thriving in this dynamic environment.

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Everything Compliance

Everything Compliance: Episode 135, The Driving in Louisville Edition

Welcome to the only roundtable podcast in compliance as we celebrate our second century of shows.

In this episode, we have the septet of shout-outs and rantors; Jonathan Marks, Matt Kelly, special guests Karen Moore and Mike DeBernardis, all hosted by Tom Fox.

1. Matt Kelly took a deep dive into the report damning the FDIC for its toxic culture. He praises the Supreme Court for upholding the constitutionality of the CFPB’s rants about right-wing radicals trying to destroy democratic institutions through the courts.

2. Guest Panelist Karen Moore reviews a court of appeals decision on a Title VII and Equal Protection clause case regarding DEI training . She sends sympathies to all those who have experienced flooding and shouts out to two Brazilian rowers, Evaldo Mathias Becker and Piedro Tuchtenhagen gave up on their Olympic dreams to stay in their home state of Rio Grande do Sul after heavy rains devastated the state.

3. Jonathan Marks discusses new PCAOB Rules on Auditor Quality Controls. He shouts out to Dylan Beard, a Walmart deli worker who qualified for spot at the U.S. Olympic track and field trials in June in the hurdles. As an unsponsored athlete, his employer, Walmart, presented him with a check for $20,000 so his friends and family could support him as he made his way to the Olympic trials.

4. Special Guest Panelist Mike DeBernardis reviews the DOJ Whistleblower Program—how will it put additional pressure on the compliance function and outside counsel regarding investigations? He shouts out to the Washington Commanders for some long awaited sanity with the club’s new owners.

5. Host Tom Fox shouts out to drive in Louisville for the bookend of Sydney Thomas saving lives and arresting the World’s Number 1 golfer Scottie Scheffler, while driving on his way to the PGA Golf Tournament at Valhalla Country Club.

The members of the Everything Compliance are:

• Jay Rosen – Jay can be reached at Jay.r.rosen@gmail.com

• Matt Kelly – Founder and CEO of Radical Compliance. Kelly can be reached at mkelly@radicalcompliance.com

• Jonathan Armstrong – is our UK colleague and an experienced data privacy/data protection lawyer in London. He can be reached at windyridgehouse@gmail.com.

• Jonathan Marks can be reached at jtmarks@gmail.com.

• Special Guest Karen Moore can be reached at Kmoore51@fordham.edu

• Special Guest Mike DeBernaris can be reached at the law firm’s website, www.hugheshubbard.com/.

The host, producer, and ranter (and sometimes 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.

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FCPA Compliance Report

FCPA Compliance Report: Mary Inman on The DOJ Whistleblower Incentive Initiative

Welcome to the award-winning FCPA Compliance Report, the longest running podcast in compliance.

In this special edition of the FCPA Compliance Report, we welcome back fan favorite Mary Inman, now at her new firm, Whistleblower Partners LLP, a firm dedicated to assisting whistleblowers navigate various reward programs.

Mary joins Tom Fox to discuss what we know so far about the DOJ Whistleblower Incentive Initiative.

Mary has a positive perspective on the Department of Justice’s (DOJ) White Collar Whistleblower Program. She acknowledges the gaps in existing whistleblower reward programs across multiple agencies and sees the DOJ program as a crucial opportunity to fill these lacunae. Inman’s expertise, particularly in the SEC program, allows her to identify specific gaps, such as the lack of financial protections for whistleblowers reporting Foreign Corrupt Practices Act violations involving companies not publicly listed on US exchanges.

From her perspective, the DOJ program will address serious financial crimes, including domestic corruption. Inman also anticipates that the DOJ will establish its own office of the whistleblower, mirroring similar initiatives in other agencies, hence providing both confidential and anonymous reporting avenues.

Topics Covered in This Episode:

  • Specialized Law Firm for Whistleblower Reward Programs
  • Financial Crime Reporting Enhancement Initiative
  • Establishing a Central Office for Whistleblowers
  • Championing Transparency: Grassley’s Whistleblower Advocacy
  • Wellness Fund Support for Whistleblowers

Resources:

Mary Inman on LinkedIn

Whistleblower Partners LLP

Tom Fox

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10 For 10

10 For 10: Top Compliance Stories For The Week Ending April 20, 2024

Welcome to 10 For 10, the podcast that 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 compliance professionals, 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.

1. Menendez defense: My wife did it.  (ABC)

2. Rethinking how your company handles cyber-risk. (FT)

3. The story of the jailed crypto officer. (NYT)

4. Jontay Porter was banned for life by the NBA for gambling on games.  (ESPN)

5. More Boeing whistleblowers step forward. (WSJ)

6. Nigeria recovers $27 million in a corruption probe. (Barron’s)

7. The EU urged China to take on Chinese forced labor. (WSJ)

8. DOJ Whistleblower program rolled out. (WSJ)

9. Silence and omission are not securities fraud.  (Reuters)

10. Venezuela arrests more PdVSA execs. (Bloomberg)

For more information on the Ethico ROI Calculator and a free White Paper on the ROI of Compliance, click here.

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

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Daily Compliance News

Daily Compliance News: April 18, 2024 – The Banned for Life Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings you compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee and listen 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.

In today’s edition of Daily Compliance News:

  • Jontay Porter was banned for life by the NBA for gambling on games.  (ESPN)
  • More Boeing whistleblowers step forward. (WSJ)
  • The EU urged China to take on Chinese forced labor. (WSJ)
  • DOJ Whistleblower program rolled out. (WSJ)

For more information on the Ethico ROI Calculator and a free White Paper on the ROI of Compliance, click here.

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FCPA Compliance Report

FCPA Compliance Report: DOJ on AI and Data/Intellectual Property Protection

Welcome to the award-winning FCPA Compliance Report, the longest-running podcast in compliance. In this special edition, Tom welcomes Jessica Nall, a partner at Baker McKenzie who leads the firm’s West Coast investigations and compliance practice, and Maria Piontkovska, a Senior Associate in the same practice group.

We deeply dive into their article about the recent speeches by Department of Justice representatives at the ABA White Collar Conference on the new DOJ whistleblower program, AI, data protection, and intellectual property protection.

Jessica Nall and Maria Piontkovska are prominent legal professionals specializing in white-collar defense and corporate investigations. Jessica, a seasoned attorney with over 20 years of experience, leads Baker McKenzie’s white-collar practice in California, and Maria is a skilled US white-collar attorney originally from Ukraine.

Both regard the ABA White Collar Conference as an essential platform for the defense bar, government investigators, and compliance leaders to gather for discussions and networking. Nall sees the conference as vital for disseminating new compliance expectations and enforcement trends announced by government officials. At the same time, Piontkovska highlights the importance of the direct line of communication with these officials, providing insights straight from the source.

Their perspectives on the conference are shaped by their extensive experiences in the field and drive their contributions to the discussions and policies related to white-collar defense and compliance.

Topics Covered in This Episode:

  • Key Figures Discussing Trends in Compliance
  • Corporate Transparency Incentive Initiative
  • Financial Incentives for Anti-Corruption Self-Disclosure
  • Navigating Risks: AI in Corporate Compliance
  • Data Mapping for International Data Security

Resources:

Jessica Nall on LinkedIn

Maria Piontkovska on LinkedIn

Compliance Steps After ABA White Collar Crime Conference

United States: Department of Justice announces new corporate compliance directives for AI along with increased penalties for AI-related misconduct

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