Tag: Mike Debernardis

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The Corruption Files

Hiring in the Financial Space

Welcome to another episode of The Corruption Files!

Thomas Fox and Michael DeBernardis discuss questionable hiring practices from JP Morgan, Credit Suisse, and Bank of New York (BNY) Mellon in employing relatives of high-profile clients to gain favor. They also discuss how companies can find a middle ground in hiring families, why Hiring can be a high-risk area, preventative questions to avoid a violation, and the significance of internal control and documentation.

▶️ Hiring in the Financial Space with Thomas Fox and Michael DeBernardis

Key points discussed in the episode:

✔️ Thomas Fox gives a brief background on the BNY Mellon case.

✔️ Michael DeBernardis mentions how Hiring based on connections has existed for a long time and doesn’t directly violate any laws. It’s all up to a company’s intent. For BNY Mellon, it was to maintain close connections with major clients. He recommends compliance professionals look into their company’s hiring process.

✔️ Hiring unqualified people means you’re hiring them for other reasons. JP Morgan took in ineligible candidates for leverage with high-profile clients and free advertising in their respective home countries. Documentation stopped JP Morgan in its tracks.

✔️ JP Morgan structured hiring program managed to override compliance controls, revealing regulation flaws. Being discovered next to BNY Mellon’s case, it was not the last instance of son-and-daughter corruption.

✔️ Thomas Fox retells the Credit Suisse case. Retracing the company’s spreadsheets revealed their inner workings.

✔️ The risk of hiring relatives can be minimized when there is a middle ground. Thomas Fox shares questions to ask to prevent violations. He also adds strengthening internal control can put a company on the good side of regulators.

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Do you have a podcast (or do you want to)? Join the only network dedicated to compliance, risk management, and business ethics, the Compliance Podcast Network. For more information, contact Tom Fox at tfox@tfoxlaw.com.

Categories
The Corruption Files

Uncovering the Hidden Schemes in Pharma with Tom Fox and Michael DeBernardis

Thomas Fox and Michael DeBernardis shed light on the bribery schemes highlighted in the cases of Eli Lilly, Fresenius, and Teva and present the prosecutorial investigation, the questionable donations and expenses, preventative measures for companies to implement, and practicing due diligence to minimize risk.

Key points discussed in the episode:
✔️ Thomas Fox introduces the cases involving Eli Lilly, Fresenius, and Teva.
✔️ Michael DeBernardis breaks down the DOJ and SEC’s investigative process in uncovering Eli Lilly’s bribery schemes – by looking into other companies from similar industries and asking the pressing questions.
✔️ Thomas Fox describes the bribes made: money going to hospitals and to the doctors and nurses directly, sending individuals to five-star resorts for fake conferences and speeches, and paying for articles that were never published. Any prior SCC reinforcement action is already a red flag.
✔️ The Eli Lilly case has made companies warier of working with government officials as a Polish state-owned health organization was involved. Also, the intent of the fraudulent talks and events was fairly obvious from a prosecutorial perspective.
✔️ Michael DeBernardis and Thomas Fox share advice on how companies should approach charitable donations: Know where your money is going, do background checks on the receiving organization and publicize all donations.
✔️ Eli Lilly’s exceeding discount for a certain distributor was pushed to the spotlight. Overriding internal controls requires documenting for a business reason. Most due diligence problems can be solved by looking closer at business justifications.

Categories
The Corruption Files

Energy Violations and the Panalpina Settlements with Thomas Fox and Michael DeBernardis

Thomas Fox and Michael DeBernardis discuss energy cases considered FCPA violations, highlighting Panalpina Settlement Day, the uncovered bribery methods, and its implications on the future of compliance, the written policies, and the solutions to commerce and transactions in higher-risk jurisdictions.

Key points discussed in the episode:
✔️ Tom Fox introduces the cases involving Shell, Transocean, Tidewater, Pride International, and Noble.
✔️ Michael DeBernardis describes the company’s methods as a hub-and-spoke arrangement and lays out the Department of Justice’s investigative process. The case has planted the seeds of the pilot program and corporate enforcement policy. The DOJ has become more deliberate in announcing settlements
✔️ Due diligence requires visibility across all aspects of the business. Thomas Fox shares a snippet of advice from a shipping company executive: “If you have a vendor with a 100% success rate, you have a problem.” Any business model based on bribery and corruption never ends well.
✔️ Panalpina’s methods were an open secret across other energy companies, designing ways to circumvent Nigerian customs. Monitoring during this time was less rigorous.
✔️ Due diligence is an ongoing process of improvement. High-risk jurisdictions for particular transactions are now thrown at the forefront.
✔️ Companies outside of the oil and gas industry have started to reconsider their strategies in high-risk areas. The solution is not to stop doing business completely but to work with companies that do compliance.
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Do you have a podcast (or do you want to)? Join the only network dedicated to compliance, risk management, and business ethics, the Compliance Podcast Network. For more information, contact Tom Fox at tfox@tfoxlaw.com.

Categories
The Corruption Files

The Corruption Files Introduction


This is Tom Fox. I want to welcome you to an exciting new podcast series that I’m premiering on the Compliance Podcast Network, The Corruption Files, together with my co-host Thomas Fox and Michael DeBernardis, an artist partner at Hughes Hubbard & Reed LLP. We will be looking at some of the top corruption enforcement actions in the United States and beyond.
In our first five episodes, we’re going to focus on some key industries inside the United States which had important FCPA actions. We’re going to focus on the background of each of the enforcement actions.
What did it mean from the prosecutorial perspective, the Department of Justice, and the Securities and Exchange Commission? And then, what did it mean at the time of the enforcement action? What does it mean today, and what does it continue to mean for the compliance professional in the future?
I know you’ll enjoy this great new series, The Corruption Files.

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All Things Investigations

All Things Investigations: Episode 3 – Key Developments in Ethics Compliance


 
Welcome to the Hughes Hubbard Anti-Corruption and Internal Investigations Practice Group’s Podcast, All Things Investigations. In this podcast, host Tom Fox and members of the Hughes Hubbard Anti-Corruption & Internal Investigations Practice Group will highlight some of the key legal issues involved in white-collar and other investigations, both domestically and internationally. In this episode, I visit with Mike DeBernardis, a partner at Hughes Hubbard, about some of the key developments in ethics compliance and FCPA from Q1 2022.
 

 
Michael A. DeBernardis is a partner in the firm’s Washington office and a member of the firm’s Anti-Corruption and Internal Investigations and White Collar & Regulatory Defense practice groups. Michael assists clients with internal investigations relating to high-stakes matters including bribery and corruption under the Foreign Corrupt Practices Act, procurement fraud, financial and accounting fraud, money laundering, and other ethics issues and violations of company policy. Michael has represented clients in connection with inquiries by the U.S. Department of Justice, U.S. Securities and Exchange Commission and U.S. Senate Permanent Subcommittee on Investigations, among others.
Key areas we discuss on this podcast are:

  •  Q1 brought resolutions that were excellent examples for training and increasing understanding about compliance issues.
  •  One of the more difficult aspects of compliance is scoping investigations.
  • View input from your monitor as an opportunity to truly improve your processes, procedures and controls. Having a positive relationship with them is hugely valuable.
  • Developing an investigation plan and protocols is an iterative process.
  • Changes to the SEC Whistleblower program.
  • Anti-corruption implications of the Russian invasion of Ukraine.

 
Resources
Hughes Hubbard & Reed website
Mike DeBernardis 
Coburn and the Attorney/Client Privilege
 

Categories
FCPA Compliance Report

Mike DeBernardis on Compliance Developments from Q4 2021


In this episode of the FCPA Compliance Report, I am joined by fan favorite Mike DeBernardis, partner at Hughes Hubbard. In this episode we look at compliance and temporal timeline developments from Q4 2021. Highlights of this podcast include:

  1. A deep dive into the Lisa Monaco speech, how it impacted the compliance temporal timeline whether it was a change or recalibration.
  2. Anti-Trust developments.
  3. The Biden Administration Strategy on Countering Corruption?
  4. Compliance in 2022 and moving forward.

Resources
Mike DeBernardis on HughesHubbard website.

Categories
FCPA Compliance Report

Mike DeBernardis on Q3 Compliance and Enforcement Highlights


In this Episode of the FCPA Compliance Report, I have thrilled to have back fan favorite Mike DeBernardis, partner at Hughes Hubbard. Mike is back for our quarterly FCPA and compliance review and in this episode, we look at highlights from Q3 2021. Highlights of this podcast include:

  1. FCPA Enforcement Actions-WPP and Credit Suisse. What are the key lessons learned?
  2. What does it mean to extend at DPA?
  3. Pandora Papers-how do you think this will drive the move for greater transparency around trusts and other opaque corporate forms?
  4. SEC

a.       Increased enforcement and admissions of liability in settlement docs.
b.       ESG Reporting requirements-what does this mean for corps
c.       Increased scrutiny for both crypto and SPACs
5. National Security Directive coming out in December.
6.HughesHubbard annual FCPA alert

Resources

Mike DeBernardis on Hughes Hubbard website.

 
 

Categories
FCPA Compliance Report

Mike DeBernardis on Enforcement and Oversight in Q2-2021


In this Episode of the FCPA Compliance Report, I am joined by fan fav and now Hughes Hubbard & Reed partner Mike DeBernardis. We take a look back at some of the key enforcement actions and issues from Q2-2021.  Highlights of this podcast include:

  1. FCPA prosecutions. In the corp sphere, only one doesn’t really mean anything going forward.
  2. FCPA Individual Prosecutions. Is the Yates Memo finally leading to results?
  3. Anti-Trust. Will the focus on the large enforcement actions against Big Tech lead to an overall reduction or will the Division be going strong against all forms of anti-competitive behavior?
  4. FCA, Fraud in PPP and PPE. Where to you see this going?
  5. What about SEC enforcement actions? Will we see more in the areas of accounting fraud, SPACs, climate change and ESG areas?
  6. Do CCOs really need to worry about individual enforcement actions?
  7. What about environmental crime enforcement actions?

Resources 
Mike DeBernardis on the HughesHubbard website
Mike DeBernardis on LinkedIn