Tag: Juniper Networks

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Why a Duck

Horsefeathers and the Juniper Networks FCPA Enforcement Action

From Vaudeville to the Silver Screen to the Small Screen, the Marx Brothers made an impact wherever people found them. Now Tom Fox and Mike Volkov have wedded their love of the Marx Brothers with their passion for compliance and bring them into the boardroom to help explain and explore the sometimes-chaotic world of governance, risk-management, ethics and compliance. In this episode they discuss the movie Horsefeathers and how it informs the recent Juniper Networks FCPA enforcement action.  Highlights from the podcast include:
  1. Why was this enforcement action so significant (or not)?
  2. Why does third-party management continue to bedevil so many companies?
  3. Why AP is a key gatekeeper for a best practices compliance program?
  4. What are some of the key lessons learned for the compliance professional?
  5. How does data analytics from this enforcement action inform compliance programs going forward?
  6. Why is GTE such a low hanging fruit for compliance programs?
  7. Why are slush funds so problematic under the FCPA?
Resources
  1. From Tom Fox-see article Juniper Networks FCPA Enforcement Action: Speak Sternly and Enhance Controls, click here.
  2. From Mike Volkov-See article Juniper Networks Settles FCPA Violations with SEC or $11.7 Million, click here.
  3. Download a copy of the SEC Cease and Desist Order, here.
Marx Brothers
Horsefeathers-the full movie on YouTube.
Categories
FCPA Compliance Report

FCPA Compliance Report-Episode 446, Matthew Jacobs on the Juniper Networks FCPA Resolution

In this episode I visit with Matthew Jacobs, a partner at Vinson & Elkins in San Francisco who represented the Audit Committee of the Board of Directors of Juniper Networks in the company’s recently concluded FCPA enforcement action.  In addition to his discussion his work on the matter we discussed some interesting questions about representation during the pendency of a FCPA investigation. Some of the highlights include:

  • Initial retention by the Audit Committee and the scope of the assignment?
  • Why the settlement was so favorable to the company?
  • How the company is in a stronger position now to stay in compliance with the FCPA and other international anticorruption laws today.
  • When should there be separate counsel for company and audit committee?
  • Why do cases take so long and how does that help or hurt the company?
  • What is the role of management changes in the resolution of a FCPA enforcement action?
  • How has the interest of the government in compliance changed?
  • Where does the disgorgement issue fit in settlement discussions?
  • What is the effect of the government deferring to internal investigations?

Resources Matthew Jacobs, V&E website.

Categories
Compliance Into the Weeds

Juniper Networks 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 Kelly and I go into the weeds to explore the recently released FCPA enforcement action by the SEC involving Juniper Networks.
Some of the highlights include:
Ø Who is responsible for the continued violations after initial discovery, the subsidiaries or the parent?
Ø What happens when a grandparent ‘speaks sternly’ to a grandchild?
Ø Why does a decentralized compliance structure allow for internal abuse?
Ø Do your policies and procedures actually support your compliance efforts?
Ø As CCO do you have visibility into where customer discounts are going?
Ø Should lawyers ever review expense reports from foreign business units?
For additional reading see the following:
Tom’s blog post, Juniper Network FCPA Enforcement Action, on the FCPA Compliance & Ethics Blog.
Matt’s blog post, Juniper Networks Hit on FCPA Charge, on Radical Compliance.
Jonathan Marks considers these points as well as the Board of Directors role in his blog post, Slush Funds and the Juniper Networks FCPA Settlement, on his always great Board and Fraud blog.