Tag: Herbalife

Categories
FCPA Compliance Report

Mike Volkov on the Herbalife FCPA Resolution

In this special five-part podcast series, I take a deep dive into the recent Herbalife FCPA Resolution. Over the next 5 podcasts Mike Volkov, Jay Rosen, Matt Kelly, Jonathan Marks and Jonathan Armstrong will all bring their own unique perspectives to this settlement. In this Part 1, Mike Volkov details how he would counsel a company which found itself in a situation similar to Herbalife.

Some of the highlights include:

·       Where would you start?

·       Make sure the full Board of Directors understands its obligations and the risks involved.

·       Build internal alliances moving forward.

·       Be up front and candid with prosecutors.

·       Do not walk back promises or representations made to prosecutors.

Categories
Everything Compliance

The Herbalife FCPA Enforcement action


Welcome to the only roundtable podcast in compliance. Today, we have the full quintet of Jonathan Armstrong, Jay Rosen, Matt Kelly, Jonathan Marks and Mike Volkov for a deep dive discussion into the recent Herbalife FCPA enforcement action. We end with a veritable mélange of rants and shouts outs.

  1. Jonathan Armstrong looks at the case from the UK and Bribery Act angle and finds some Scottish cases which might inform a response. Armstrong shouts out to those ‘in transition’ and encourages them to engage.
  2. Jay Rosen considers the lack of monitor in the Herbalife case and takes a deep dive into some of the possible reasons. Jay rants about AG Bill Barr and his unitary theory that the entire DOJ works for him personally.
  3. Matt Kelly considers the role in internal audit in this case and then looks at the (non) actions of the Board of Directors. Matt shouts out to Nora Dannehy and her principled stance.
  4. Mike Volkov considers how he would have approached counseling Herbalife if they had called him when it all hit the fan. He shouts out Ruth Bader Ginsburg.
  5. Jonathan Marks considers the role of gatekeepers in this case and decrees the lack of skepticism at the Board. He rants about IIA for beginning the discussion to reconfigure its 3 Lines of Defense but says it does not go far enough.
  6. Tom Fox shouts out to Jose Altuvé for breaking through the Mendoza Line by raising his batting average to .215. 

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.

Categories
Compliance Into the Weeds

Herbalife FCPA Enforcement Action


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 and Tom go into the weeds to look the recently announced Herbalife FCPA enforcement action. Some of the issues we consider are:

  • Why were the facts so egregious?
  • How high up in the organization did the corruption scheme go?
  • Why was the Board’s performance so abysmal?
  • Was the head of Internal Audit in on the bribery scheme?
  • What was the role of short-sellers in bringing this massive fraud to light?

Resources
See Matt’s blog posts on Radical Compliance
Herbalife Pays $123M on FCPA Charges 
See Tom’s 3-part blog post series on the FCPA Compliance and Ethics Blog
The Herbalife FCPA Enforcement Action, Part 1
The Herbalife FCPA Enforcement Action, Part 2
The Herbalife FCPA Enforcement Action, Part 3

Categories
Daily Compliance News

March 4, 2020, the Herbalife edition


In today’s edition of Daily Compliance News:

  • Herbalife reserves $40MM for FCPA settlement. (WSJ)
  • Was US Gymnastics one big scam? (WSJ)
  • Trump wants to lift ban on transporting LNG by train, putting every city, town and hamlet at risk. (Washington Post)
  • Banks claims that with coronavirus they need less regulation. (Washington Post)