In today’s edition of Daily Compliance News:
- DOJ drops new Compliance Program Guidance. (Justice Department)
Tag: DOJ
Your company has just made its largest acquisition ever and your CEO says that he wants you to have a compliance post-acquisition integration plan on his desk in one week. Where do you begin? Of course, you think about the 2020 FCPA Resource Guide, 2nd edition but you also remember that the established time frames in the enforcement actions involving Johnson & Johnson (J&J), Pfizer Inc. and DS&S and the Halliburton Opinion Release.
While there are time frames listed in these DPAs, they are a guide of timeframes, not a ‘how to’ guide and many compliance professionals struggle with how to perform these post-acquisition compliance integrations. The 2020 Update to the Evaluation of Corporate Compliance Programs asked the following questions, What has been the company’s process for tracking and remediating misconduct or misconduct risks identified during the due diligence process? What has been the company’s process for implementing compliance policies and procedures, and conducting post- acquisition audits, at newly acquired entities?
Whatever compendium of steps you utilize for post-acquisition integration, they should be taken as soon as practicable.
Three key takeaways:
- Planning is critical in the post-acquisition phase.
- Build upon what you learned in pre-acquisition due diligence.
- You need to be ready to hit the ground running when a transaction closes.
In today’s edition of Daily Compliance News:
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. In this episode, Matt Kelly and I go into the weeds about the recent DOJ announcement of the Procurement Collusion Strike Force (PCSF). Some of the highlights include.
Some of the highlights include:
- Why was the PCSF created?
- What will it focus on?
- Why does the funding (or lack thereof) matter?
- What do the twin DOJ announcements of the PCFS portend?
- Why are analytics more critical for compliance going forward?
- What are procurement red flags?
- What does all this mean for compliance professionals going forward?
Resources
Matt’s blog post, Brace for Procurement Compliance, on Radical Compliance.
DOJ Press Release on PCSF
PCSF website
In this episode I visit with Mike Volkov about the Hoskins verdict, which was announced on Friday, November 8. In it Lawrence Hoskins was found guilty on six counts of violating the FCPA, three counts of money laundering, and two counts of conspiracy. Hoskins was acquitted on one money laundering count. We explore this case from the trial perspective. Some of the highlights include:
- What was the significance of the verdict?
- What evidence did the prosecutors have to put forward to prove agency?
- How do prosecutors think through jury presentations?
- Did the fact that Hoskins basic defense was that he was in charge of a criminal conspiracy and not an agent play poorly in front of the jury ?
- What might all this mean for FCPA prosecutions going forward? How about internal investigations?
- What does this case say about being the first to cooperate?
- What signal does this case say about DOJ prosecution of individuals under the FCPA?
Over the course of this podcast series, sponsored by Affiliated Monitors, Inc. (AMI), I have visited with Eric Feldman, Senior Vice President of AMI. We have considered the Department of Justice (DOJ) Evaluation of Corporate Compliance Programs, (the “2019 Guidance”), which was released in April 2019. We are exploring what the 2019 Guidance changes are from the Evaluation of Corporate Compliance Program (2017 Guidance), released in February 2017, the structure and emphasis of the 2019 Guidance and what it means for the compliance practitioner going forward. In this concluding Episode, we bring together our final thoughts through a consider of the question “What does it all mean for your compliance practice? For more information on how an independent monitor can help improve your company’s ethics and compliance program, visit our sponsor at www.affiliatedmonitors.com.
As the lads wish a fond farewell to May, enjoy the Astros still leading the MLB with the best record and looking forward to the start of summer, they return to discuss both events some of this week’s top compliance and ethics stories which caught their collective eyes.
- Dave Lefort’s Top 10 takeaways from Compliance Week 2019. (sub req’d) Tom, Mary Shirley, Lisa Fine and Amii Bernard-Bahn provide their reflections on a cross-posted podcast.
- Why ethics matters at the top.
- Can UNCAC help Mozambique recover funds stolen through corruption? Rick Messick explores.
- What is cooperation and remediation? Matt Kelly explores.
- Why is pre-acquistion DD from the compliance perspective now critical in France? Antoine F. Kirry, Frederick T. Davis, and Alexandre Bisch discuss.
- How much does a monitorship cost? Jay continues his multipart series on monitorships .
- How do you audit your investigative protocol? Mike Volkov explains in a 3-part series on his blog site Corruption, Crime and Compliance.
- Why is visibility key for compliance? Elsa Chan explores.
- CITGO now part of PdVSA/Venezuelan corruption scandal. Dick Cassin reports. Marissa Luck.
- Is there a legal duty to set the right ‘tone at the top?”
- This week Tom had a special 5-part podcast series sponsored by Hanzo on using AI and data analytics in compliance investigations. Check out the following: Part 1-Current State of Investigations; Part 2-Using AI and Web-Based Evidence; Part 3– Overcoming Investigative Challenges; Part 4-Improving Investigative Efficiencies; Part 5-Where are investigations headed? The podcast is available on multiple sites: the FCPA Compliance Report, iTunes, JDSupra, Megaphone,YouTube, Spotifyand Corporate Compliance Insights. The Compliance Podcast Networkjoins C-Suite Radio.
- Join Tom in Boston for industry leading Compliance Master Class at the offices on AMI on June 11 & 12. Listeners who attend will receive a complimentary copy of The Compliance Handbook. Registration and Information is here. Join Tom, Eric Feldman, Vin DiCianni and Jay at the AMI Roundtable in Boston on June 13 for a deep dive into the DOJ’s new Evaluation of Corporate Compliance Programs-2019 Guidance. Information and registration is here.
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.
For more information on how an independent monitor can help improve your company’s ethics and compliance program, visit our sponsor Affiliated Monitors at www.affiliatedmonitors.com.
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. In this episode, Matt Kelly (the coolest guy in compliance) and I go into the weeds to explore what exactly is sub-regulatory guidance and why the debate around it by the current administration is seemingly against not only the government’s interest but also business’ interest. Be sure and listen all the way through as Matt goes on a rant at the end of the podcast.
Some of the highlights include:
- What were the remarks of Claire Murray that got Matt so riled up?
- Is the Evaluation of Corporate Compliance Programs, 2019 Guidance just paper?
- What would happen to a company which does not use the 2019 Guidance as a roadmap?
- Why business’ support sub-regulatory guidance?
- Why documentation is critical for multiple parts of a compliance program?
- What do Murray’s remarks mean for the compliance practitioner?
For the full text of the remarks of Principal Deputy Associate Attorney General Claire Murray at the Compliance Week 2019 Annual Conference, click here.
Highlights include:
- Have you checked out the new OFAC compliance program? If not see Mike Volkov’s 5-part series on Corruption, Crime and Compliance. (Part 1, Part 2, Part 3, Part 4) For those who prefer the podcast format, you can list to his podcast on the topic here.
- Hui Chen and Pam Davis weigh in on the 2019 DOF FCPA Guidance. In Bloomberg.
- Noose tighten around Credit Suisse and Privinvest in Mozambique tuna boat scandal? Rick Messick explores in Global Anti-Corruption
- What are the compliance lessons from a messy and very public food fight? Matt Kelly explores in two postings on Radical Compliance. (hereand here)
- How does scape-goating come into play in cross-border anti-corruption enforcement? Laurent Cohen-Tanugi discusses on NYU’s Compliance and Enforcement Blog.
- Jay continues his exploration of using a monitor, in his Corporate Compliance Insights
- What do dawn raids have in common with fires (at least in the UK)? Barry Vitou explores on com.
- Is Equifax about to settle for its massive data breach? Jon Rusch explores on Dipping Through Geometries.
- Why should compliance training start with a smile? Ronnie Feldman explains on Corporate Compliance Insights.
- What are the compliance lessons for hospitality around major sporting events? Tom explores in a white paper on Corporate Compliance Insights.
- This week Tom had a special 5-part podcast series sponsored by Assent Compliance on the issue of maintaining market access. Check out the following: Part 1-Introduction to Market Access; Part 2-Trade Compliance; Part 3– Continuous Monitoring; Part 4-FARs and flow downs; Part 5-Chemical and Product Compliance. The podcast is available on multiple sites: the FCPA Compliance Report, iTunes, JDSupra, Megaphone,YouTube, Spotifyand Corporate Compliance Insights. The Compliance Podcast Network
- Join Tom in Boston for industry leading Compliance Master Class at the offices on AMI on June 11 & 12. Listeners who attend will receive a complimentary copy of The Compliance Handbook. Registration and Information is here. Join Tom, Eric Feldman, Vin DiCianni and Jay at the AMI Roundtable in Boston on June 13 for a deep dive into the DOJ’s new Evaluation of Corporate Compliance Programs-2019 Guidance. Information and registration is here.
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.For more information on how an independent monitor can help improve your company’s ethics and compliance program, visit our sponsor Affiliated Monitors at www.affiliatedmonitors.com.
Welcome to the only roundtable podcast in compliance. Today, we have the full quintet of Mike Volkov, Jay Rosen, Matt Kelly, Jonathan Armstrong and our newest colleague, Sarah Hadden. We take on one topic which the panelist explores from their expertise. The topic is the Justice Department’s Evaluation of Corporate Compliance Programs-2019 Guidance which was recently released.
- Sarah Hadden puts on her journalist hat to consider the 2019 Guidance in the context of transparency by DOJ in releasing this information critical for compliance going forward. Sarah rants on all those in the Everything Compliance gang who attended the ECI Impact 2019 conference in her hometown of Dallas and did not reach out to connect with her. (And we know who we are)
- Matt Kelly considers some different questions such as: Is there anything new? Does it mean any difference in practice? Is it simply a way to wipe out one of the core legacies of Hui Chen? Matt rants on the Trump Administration which said only a couple of weeks ago said it was cracking down on Agency and Department Guidance and literally turns around and issues the 2019 Guidance. Which is it guys?
- Jay Rosen discuss the original Benczkowski Memo as a precursor to the new 2019 Guidance and how the Benczkowski Memo lays out a roadmap to avoid a monitor by using pro-active assessments. Jay shouts out to the Boston Red Sox for reaching .500. (Matt chastises Jay for now jinxing the Sox)
- Mike Volkov discusses how the Justice Department is using the state of compliance programs not only at time of violation but also at time of conclusion to reward companies with lower penalties. Mike shouts out to both Brian Benczkowski/DOJ for this new FCPA Compliance Guidance and the Department of Treasury for OFAC guidance around money-laundering and trade sanctions compliance programs.
- Jonathan Armstrong compares and contrasts the 2019 Guidance document with the information released by SFO on compliance programs. He then considers what a ‘good’ compliance program looks like in his search for a ‘good’ recipe for the perfect Tikka Masala. He rants about the first UK data privacy regulatory action under GDPR, where the UK data protection agency sanctioned the UK government for violation of GDPR.
The members of the Everything Compliance panelist are:
- Jay Rosen– Jay is Vice President, Business Development Corporate Monitoring at Affiliated Monitors. Rosen can be reached at JRosen@affiliatedmonitors.com
- Mike Volkov– One of the top FCPA commentators and practitioners around and the Chief Executive Officer of The Volkov Law Group, LLC. Volkov can be reached at mvolkov@volkovlawgroup.com.
- 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 lawyer with Cordery in London. Armstrong can be reached at armstrong@corderycompliance.com
- Sarah Hadden–Publisher at Corporate Compliance Insights. Hadden can be reached at Sarah@corporatecomplianceinsights.com.
The host and producer (and sometime panelist) of Everything Compliance is Tom Fox the Compliance Evangelist. Everything Compliance is a part of the Compliance Podcast Network.