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2 Gurus Talk Compliance

2 Gurus Talk Compliance – Episode 59 – The Foot Fetish Edition

What happens when two top compliance commentators get together? They talk compliance, of course. Join Tom Fox and Kristy Grant-Hart in 2 Gurus Talk Compliance as they discuss the latest compliance issues in this week’s episode!

 Stories this week include:

  • AI vs. AI: The Battle Over Fraudulent Receipts
  • Whistleblower Lessons: Nestlé CEO Dismissal Case
  • Forced Labor Legislation: UK and EU Developments
  • Boeing, DOJ, and the Role of Corporate Monitors
  • Workplace Activism: Managing Political Debate at Work
  • Data Privacy: French Fines Against Google and Shein
  • Corporate Wellness: Innovative Employee Perks
  • Children’s Data Privacy: Disney’s FTC Settlement
  • Florida Man Story: Compliance Lessons from the Absurd

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Blog

UM Cheating Scandal: The NCAA – What Happens When Enforcement Is Toothless?

In August 2025, the NCAA released its long-awaited Report on infractions committed by and for the University of Michigan football program. For compliance professionals, this case should be viewed not merely as a college sports story but as a case study in organizational misconduct, leadership failure, and cultural breakdown. Just as an FCPA enforcement action lays bare how companies slip into non-compliance, this NCAA decision reveals how one of the country’s premier football programs allowed systemic misconduct to flourish.

In Part 1 of this series, we examined the factual record of the University of Michigan football infractions case, including the impermissible scouting scheme, recruiting inducements, and failures to cooperate. In Part 2, we examined the culture that enabled these violations —a football program that viewed compliance as an enemy and leadership that turned a blind eye. In Part 3, we examined enforcement, or the lack thereof.

Today, when considering the penalties and the enforcement agency, the NCAA. When the dust settled, Michigan walked away without the kind of penalties most observers expected. No games were vacated. No national championship trophies were stripped. No postseason ban was imposed. Instead, Michigan received financial penalties, recruiting restrictions, and an additional four years of probation, in addition to its existing sanctions.

For many, the outcome raises an uncomfortable question: has the NCAA become a toothless enforcement agency? For compliance professionals in the corporate world, this is more than a sports story. It presents an opportunity to reflect on the broader role of enforcement bodies. What happens when regulators fail to enforce meaningfully? How does weak enforcement shape culture? And what can companies learn about their own compliance posture from the NCAA’s example?

The NCAA’s Enforcement Challenge

The NCAA has long touted its role as the guardian of fair play in college sports. Yet over the last decade, its enforcement credibility has eroded. From the Penn State scandal, where authority was challenged in court, to the University of North Carolina’s academic fraud case, where the NCAA claimed it lacked jurisdiction, the association has repeatedly faced criticism that its sanctions are inconsistent, politically influenced, or ineffective.

The Michigan case is the latest data point. Despite describing the scouting scheme as “one of one” in scope and seriousness, the Committee on Infractions declined to impose the stiffest penalties available:

  • No vacating of wins from the 2021–2023 seasons.
  • No forfeiture of the 2023 National Championship, which Michigan won while the scheme was ongoing.
  • No postseason ban, even though the guidelines make such bans mandatory in Level I–Aggravated cases without exemplary cooperation.

Instead, the NCAA substituted financial penalties, citing fairness to current student-athletes who were not involved in the allegations. While this rationale has merit, it leaves the impression that Michigan “got away with it” and that the NCAA is unwilling to enforce its own rules when high-profile programs are involved.

What Weak Enforcement Signals

For compliance officers, this is familiar territory. Regulators who talk tough but avoid meaningful enforcement send a dangerous signal. They tell organizations:

• The risk of being caught is survivable. If the worst that can happen is a fine or probation, misconduct can be rationalized as a business risk.

• The rules are negotiable. If guidelines call for certain penalties but regulators bend them for expedience, the rules lose their deterrent effect.

• Culture follows enforcement. If leaders see that regulators will not impose significant penalties, they are less likely to instill a culture of compliance.

The DOJ has been explicit on this point in its 2023 and 2024 guidance updates: enforcement must be consistent, transparent, and meaningful. Otherwise, companies see compliance as optional.

Parallels to Corporate Enforcement

Consider the parallels between the NCAA’s enforcement dilemma and corporate regulation:

  • Financial Institutions and Money Laundering: If a bank is repeatedly fined for AML violations but never loses its charter or key licenses, the cost of compliance failure becomes just another line item on the balance sheet.
  • FCPA Cases Without Monitors: When companies resolve foreign bribery matters with fines but no independent monitor, questions arise about whether compliance programs will really change.
  • Tech Sector Antitrust: When major technology firms pay record fines but retain their market dominance, critics argue that regulators are unwilling to disrupt the status quo.

The NCAA’s approach in the Michigan case echoes these patterns: big headlines, some financial pain, but no penalties that fundamentally change behavior.

Why the NCAA Chose This Path

The NCAA faced a difficult choice. Punishing current athletes for past staff misconduct raises questions of fairness. Vacating championships is largely symbolic; fans remember who won on the field. And the legal and political environment has shifted: with NIL, the transfer portal, and litigation like House v. NCAA, the NCAA’s authority is weaker than ever.

However, from an enforcement perspective, these explanations do not eliminate the central issue. When rules are broken at the highest level and the sanctions do not match the severity of the violations, the credibility of the regulator erodes.

Lessons for Compliance Professionals

What should compliance officers take away from the NCAA’s Michigan decision?

1. Enforcement Must Be Meaningful

If sanctions do not create real pain, misconduct will be rationalized as a cost of doing business. Compliance programs must be backed by meaningful consequences, whether in sports, banking, or healthcare.

2. Consistency Matters

Regulators that treat marquee institutions differently from smaller ones risk undermining the integrity of the system. In the corporate world, DOJ has emphasized consistency across industries. Selective enforcement creates cynicism.

3. Symbolic Sanctions Still Matter

Yes, vacating wins may be symbolic, but symbols shape culture. Stripping a national championship would have sent a message: no program is above the rules. In the corporate world, this is akin to requiring public admissions of wrongdoing, symbols that reinforce accountability.

4. Enforcement Without Teeth Undermines Compliance Officers

Michigan’s Chief Compliance Officer fought to enforce the rules but was rebuffed by the football staff. The NCAA’s weak enforcement now validates that resistance. Similarly, in corporations, when regulators fail to take action, compliance officers lose internal leverage.

5. The Importance of Independent Oversight

The NCAA is fundamentally a membership organization, as the member schools police themselves. This structural conflict mirrors corporate boards that allow management too much sway over investigations. Independence matters. Without it, enforcement credibility is always in doubt. Even worse is the clear implication that the NCAA is now entirely irrelevant for enforcement.

The Broader Question: Can the NCAA Still Govern

The Michigan case may be remembered less for the violations than for what it revealed about the NCAA’s limits. With the rise of NIL collectives, super conferences, and legal challenges, the NCAA’s role as enforcer is shrinking.

Some argue that conferences, such as the SEC and Big Ten, or even external regulators, such as Congress or state legislatures, may need to step into the breach. Others believe that the market itself, including fans, media, and sponsors, will impose reputational sanctions when the NCAA fails to do so.

For compliance officers, this debate is instructive. When a regulator loses credibility, industry participants look elsewhere for governance. The same could happen in corporate sectors if regulators falter: private monitors, investor activism, or even international bodies may step in to enforce standards.

The Cost of Toothless Enforcement

The NCAA’s decision in the Michigan case underscores a hard truth: rules without meaningful enforcement are not rules at all but merely suggestions.

For compliance professionals, this case should prompt reflection. What happens when your regulator is unwilling to enforce? What happens when penalties are softened to avoid controversy? And how do you, as a compliance officer, maintain credibility in a culture that sees enforcement as toothless?

The answers are sobering. Regulators must be consistent, meaningful, and unafraid to impose real consequences. Otherwise, they risk becoming like the NCAA: long on rules, short on enforcement, and increasingly irrelevant.

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From the Editor's Desk

From the Editor’s Desk – Compliance Week’s Insights and Reflections from July to August 2025

In this episode of From the Editor’s Desk, co-hosts Tom Fox and Ian Sherr dive into key compliance stories from July, including differences in AI regulation between the U.S., EU, and UK, and shifts in regulatory approaches globally. They discuss notable cases, such as the DOJ’s $14 billion healthcare fraud prosecution tied to transnational crime, and T-Mobile’s acquisition of US Cellular amidst DEI program cuts. Upcoming initiatives in Compliance Week are also highlighted, including in-depth industry coverage and data-driven stories to aid compliance professionals in their roles. The episode concludes with insights into the recent acquisition of ECI by Compliance Week’s parent company, Verdian Insights, which aims to enhance resources available to the compliance community.

Highlights include:

  • Highlighting Key Stories from Compliance Week in July
  • Emerging Patterns in Compliance
  • Tariffs and Their Impact
  • SEC Whistleblower Claims Analysis
  • Upcoming Features and Data Stories
  • ECI Acquisition by Verdian Insights and Its Impact

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Compliance Into the Weeds

Compliance into the Weeds: DOGE and Compliance

The award-winning, Compliance into the Weeds is the only weekly podcast that takes a deep dive into a compliance-related topic, literally going into the weeds to explore a subject more fully. Are you looking for some hard-hitting insights on compliance? Look no further than Compliance into the Weeds! In this episode, Tom Fox and Matt Kelly dive into the Trump Administration’s DOGE initiatives and what it might mean for compliance.

Tom and Matt discuss the implications of Elon Musk and Vivek Ramaswamy’s Department of Government Efficiency Committee (DOGE), which aims to downsize the federal government drastically. They explore the potential consequences of cutting half of all regulations and federal employees, particularly on compliance officers and corporate risk management. The conversation highlights how the reduction or abolition of federal regulations would affect various sectors, including the military, social security, and essential services, and delves into the challenges this proposal poses for compliance programs within businesses. They also consider possible outcomes such as increased state-level regulations, civil litigation, and the chaos and uncertainty that might follow. Finally, they discuss how companies should prepare for an inconsistent and unpredictable regulatory environment under a Trump administration.

Key highlights:

  • DOGE and Government Restructuring
  • Implications for Compliance Officers
  • Challenges of Cutting Regulations and Staff
  • Potential Consequences of Reduced Regulations and Non-Enforcement
  • Compliance Embedded in Business Practices
  • State-Level Regulation and Emerging Risks

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Everything Compliance

Episode 67, the Enforcement Under the Next Administration


Welcome to the only roundtable podcast in compliance. Today, we have the quartet of Jonathan Armstrong, Jay Rosen, Matt Kelly and Mike Volkov for a deep dive into four key areas of enforcement and what they might look like under a Trump or Biden Administration. We end with a veritable mélange of rants and shouts outs.

  1. Jonathan Armstrong looks at the fraying relationship between the UK Serious Fraud Office and US Department of Justice and where it may be heading. Armstrong rants requesting a return to British standards of decency.
  2. Jay Rosen looks at the transparency of the DOJ around its views on compliance programs and asks if it will continue. Jay rants the illegal GOP voter drop boxes in California.
  3. Matt Kelly considers the trends in FCPA enforcement and how they might continue in the next administration. Matt shouts internal auditors who have been murdered in Liberia.
  4. Mike Volkov considers how antitrust enforcement might move forward under a Trump or Biden Administration. Volkov shouts out to and for early voting.
  5. Tom Fox shouts out to his fellow residents of Harris County who smashed the 3-day early voting recording by casting 100,000 votes each of the first three days.

 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
  • 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 data privacy/data protection lawyer with Cordery in London. Armstrong can be reached at armstrong@corderycompliance.com
  • Jonathan Marks is Partner, Firm Practice Leader – Global Forensic, Compliance & Integrity Services at Baker Tilly. Marks can be reached at marks@bakertilly.com

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