Tag: Nick Gallo

Everything Compliance - Shout Outs and Rants

Shout Outs and Rants – Episode 141

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Post date September 24, 2024
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Welcome to the only roundtable podcast in compliance as we celebrate our second century of shows. In this episode, we take up a potpourri of topics. We have the quartet of Matt Kelly Jonathan Armstrong, Jonathan Marks, and Karen Moore; all hosted by Tom Fox.

Matt Kelly shouts out to Michaela DePrince for a life well lived.
Karen Moore shouts out to Nick Gallo and asks all to keep him in their thoughts and prayers for a speedy recovery.
Karen Woody shouts out to pop culture and the great show on Apple TV Slow Horses.
Jonathan Marks shouts out to eBay for providing authenticator services and briefs us on the Keeper Test.
Tom Fox shouts out to Los Angeles Dodger Shohei Ohtani for having one of the greatest single seasons in MLB by a hitter.

The members of the Everything Compliance are:

Karen Woody – Is one of the top academic experts on the SEC. Woody can be reached at kwoody@wlu.edu
Matt Kelly – Founder and CEO of Radical Compliance. Kelly can be reached at mkelly@radicalcompliance.com
Jonathan Armstrong – is our UK colleague and an experienced data privacy/data protection lawyer in London. He can be reached at Armstrong@puntersouthall.law
Jonathan Marks can be reached at jtmarks@gmail.com
Karen Moore is a Principal at Sounding Board Compliance, and can be reached at Karen.moore@soundingboardcompliance.com

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

Tags eBay, Michaela DePrince, Nick Gallo, Shohei Ohtani, Slow Horses

FCPA Survival Guide

FCPA Survival Guide – Step 10 – Lesson on Speak Up Culture, Triage, and Internal Investigations

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Post date August 8, 2024
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How can you survive an FCPA enforcement action? In this special podcast series, Tom Fox and Nick Gallo lay out the Top 10 things you can do to reduce your overall fine and penalty, perhaps down to a full declination. All of the actions you can take come from recent DOJ prosecutions under the FCPA and speeches from DOJ representatives. This podcast, sponsored by Ethico, is the companion series to the book The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action. Today, we discuss lesson number 10, your investigation process.

Tom and Nick discuss the importance of establishing a culture where employees feel empowered to speak up, the process of triaging and conducting internal investigations, and the significance of these practices in modern compliance programs. They reflect on the shift in workforce mentality towards valuing integrity and the practical implications for ethics and compliance teams in today’s knowledge economy. They emphasize the necessity of effective internal reporting mechanisms and middle management’s strategic role in capturing risk intelligence. The conversation explores the challenges and opportunities in optimizing compliance processes to mitigate risks and demonstrate organizational effectiveness to regulators like the DOJ and SEC.

Key Highlights and Issues

The Importance of Speak Up Culture
Workforce Dynamics and Compliance
Challenges in Compliance Reporting
Whistleblower Programs and Internal Reporting
Optimizing Compliance Processes

Resources:

Nick Gallo on LinkedIn

Ethico

The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action

Tom

Tags Ethico, internal investigations, Nick Gallo

FCPA Survival Guide

FCPA Survival Guide – Step 8 – Investing in Compliance

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Post date July 25, 2024
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How can you survive an FCPA enforcement action? In this special podcast series, Tom Fox and Nick Gallo outline the Top 10 things you can do to reduce your overall fine and penalty, perhaps down to a complete declination. All of the actions you can take come from recent DOJ prosecutions under the FCPA and speeches from DOJ representatives. This podcast, sponsored by Ethico, is the companion series to the book The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action. Today, we discuss lesson number eight: investing in your compliance program.

Tom and Nick highlight case studies from Albemarle, SAP, and ABB, emphasizing the importance of investing in resources, experienced personnel, and the need for continuous testing. The conversation underscores how these efforts build a credible compliance story for the DOJ and provide insights into successfully navigating FCPA remediation.

Key Highlights and Issues

Enhancing Your Compliance Program
ABB’s Compliance Transformation
Building a Compliance Story
The Importance of Authenticity in Compliance
Crafting a Persuasive Compliance Narrative

Resources:

Nick Gallo on LinkedIn

Ethico

The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action

Tom

Tags ABB, Albemarle, DOJ, Ethico, FCPA, Nick Gallo, SAP

FCPA Survival Guide

FCPA Survival Guide – Step 7 – Changing Your Business Model

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Post date July 18, 2024
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In this episode, Tom and Nick discuss the significant transformations by companies like Albemarle and SAP, which shifted from using third-party sales agents to internal teams to enhance compliance and reduce risk. The conversation delves into the Department of Justice’s role in recognizing and endorsing such changes, eventually becoming industry standards. The session also covers the challenges and considerations in explaining such fundamental shifts to stakeholders and effectively managing the associated risks.

Key Highlights and Issues:

The Role of DOJ in Compliance Solutions
Case Studies: Albemarle and SAP
Philosophical Changes in Sales Models
Risks in Internal vs. Third-Party Sales Model
Business Reasons for Internal Sales
Explaining Changes to Stakeholders

Resources:

Nick Gallo on LinkedIn

Ethico

The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action

Tom

Tags Albemarle, DOJ, Ethico, FCPA, Nick Gallo

FCPA Survival Guide

FCPA Survival Guide – Step 6 – Clawbacks and Holdbacks

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Post date July 11, 2024
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In episode six of the FCPA Survival Guide, Tom Fox and Nick Gallo delve into the relatively new DOJ enforcement strategies: clawbacks and holdbacks. They discuss how these financial disincentives, formalized in the 2023 Monaco memo, aim to promote corporate compliance. The conversation highlights practical examples from companies like SAP and Albemarle, which implemented these strategies and received substantial credits from the DOJ. Nick emphasizes the importance and effectiveness of financial disincentives in driving behavior change and maintaining corporate integrity. The episode explores how these methods can operationalize compliance at all organizational levels.

Key Highlights and Issues

Understanding Holdbacks and Clawbacks
DOJ’s Pilot Program and Case Studies
The Impact of Financial Incentives
Corporate Responsibility and Individual Accountability
Employee Awareness and Compliance Culture
Balancing Positive and Negative Incentives

Resources:

Nick Gallo on LinkedIn

Ethico

The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action

Tom

Tags clawbacks, DOJ, Ethico, FCPA, Holdbacks, Nick Gallo

FCPA Survival Guide

FCPA Survival Guide: Step 5 – Data Analytics

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Post date June 27, 2024
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Tom Fox and Nick Gallo are back to discuss the evolving role of data analytics in compliance, highlighting its transition from a cutting-edge tool to a best practice and soon-to-be table-stakes requirement. They review the SAP and Albemarle FCPA enforcement actions to illustrate points where data analytics played a pivotal role in remediation efforts. They look at the foundational aspects of data analytics, paralleling personal finance management to underline its fundamental importance in both personal and professional contexts. Some of the key uses of data analytics are risk identification, response, compliance program testing, and reporting, as outlined by Andrew McBride, a recently retired chief ethics and compliance officer. They conclude by stressing the importance of data analytics in demonstrating program effectiveness and underscore the DOJ’s interest in data-driven evidence of compliance program remediation.

Key Highlights and Issues

The Evolution and Importance of Data Analytics
Understanding Data Analytics Through Everyday Examples
Practical Approaches to Implementing Data Analytics
The Role of Data Analytics in Compliance Program Testing and Reporting
Personalizing Data Analytics for Program Effectiveness

Resources:

Nick Gallo on LinkedIn

Ethico

The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action

Tom

Tags Data Analytics, data driven compliance, DOJ, FCPA, FCPA Survival Guide, Nick Gallo

FCPA Survival Guide

FCPA Survival Guide: Step 4 – Root Cause Analysis

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Post date June 20, 2024
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How can you survive an FCPA enforcement action? In this special podcast series, Tom Fox and Nick Gallo outline the Top 10 things you can do to reduce your overall fine and penalty, perhaps down to a complete declination. All of the actions you can take come from recent DOJ prosecutions under the FCPA and speeches from DOJ representatives. This podcast, sponsored by Ethico, is the companion series to the book The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action. Today, we discuss the DOJ requirement that your remediation begins with a root cause analysis.

In this episode, host Tom Fox and co-host Nick Gallo discuss the importance of conducting a root cause analysis in compliance programs, particularly in light of the recent FCPA enforcement actions highlighting its significance. They use SAP’s approach to root cause analysis as a prime example of effectively identifying and remedying the underlying causes of compliance failures rather than merely addressing symptoms. They relate the human tendency to stop at superficial answers and the importance of discipline in continually asking ‘why’ to uncover true or ‘root’ causes. This approach satisfies regulatory expectations and builds a robust compliance program to prevent future violations. They underline the importance of storytelling in compliance, framing the root cause analysis and subsequent remediation efforts in a narrative that resonates with internal and external audiences, including regulators.

Key Highlights and Issues:

The Importance of Root Cause Analysis in Compliance
Human Nature and the Challenge of Deep Analysis
DOJ’s Expectations
The Art of Storytelling in Compliance

Resources:

Nick Gallo on LinkedIn

Ethico

The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action

Tom

Tags DOJ, FCPA, FCPA Survival Guide, Nick Gallo, root cause analysis

FCPA Survival Guide

FCPA Survival Guide: Step 3 – Extensive Remediation

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Post date June 13, 2024
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Tom Fox and Nick Gallo are back to look at the importance of extensive remediation in compliance, particularly in the context of the FCPA enforcement actions. They highlight three enforcement actions – ABB, Albemarle, and SAP – to demonstrate how companies have implemented effective remediation strategies. ABB’s approach included a comprehensive data analytics program and cultural changes led by Chief Integrity Officer Natalia Shehadeh. The DOJ’s recognition of data analytics in the Albemarle and SAP cases signals a shift from cutting-edge practices to standard expectations in compliance. The episode also delves into the transformation of business models as a form of remediation, with Albemarle and SAP making significant changes to their sales strategies to manage risks better and ensure direct customer relationships. Through these discussions, Tom and Nick emphasize that extraordinary remediation is about authentic efforts to improve compliance and reduce risk, not just fulfilling minimal requirements.

Key Highlights and Issues

Exploring ABB’s Compliance Remediation Strategy
Beyond Checking the Box: A Deep Dive into Compliance Remediation Mindset
The Power of Data Analytics in Compliance Remediation
Transforming Business Models for Better Compliance Remediation

Resources:

Nick Gallo on LinkedIn

Ethico

The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action

Tom

Tags DOJ, enforcement actions, extensive remediation, FCPA, FCPA Survival Guide, Nick Gallo

FCPA Survival Guide

FCPA Survival Guide: Step 2 – Extraordinary Cooperation

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Post date June 6, 2024
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How can you survive an FCPA enforcement action? In this special podcast series, Tom Fox and Nick Gallo outline the Top 10 things you can do to reduce your overall fine and penalty, perhaps down to a full declination. All of the actions you can take come from recent DOJ prosecutions under the FCPA and speeches from DOJ representatives. This podcast, sponsored by Ethico, is the companion series to the book The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action. Today, we discuss the DOJ requirement of extraordinary cooperation.

This episode highlights the definitions of full cooperation and extraordinary cooperation from a law enforcement perspective, emphasizing the advice from Kenneth Polite and Deputy Attorney General Lisa Monaco on acting ‘swiftly and without delay.’ They explore strategies for accelerating investigations without compromising quality, including leveraging technology, ensuring a well-defined process, and engaging the right people. They emphasize the DOJ’s demand for immediacy, consistency, and impact in investigations, linking efficient, real-time processes with the broader goal of compliance and remediation. The discussion also touches on managing messaging apps and the significance of preparation and proactive processes to meet the Department of Justice’s expectations effectively.

Key Highlights and Issues:

Defining Extraordinary Cooperation and Its Challenges
The Importance of Real-Time Systems in Investigations
Strategies for Efficient and Effective Investigations
Leveraging Technology, Process, and People for Speed
The DOJ’s Expectations: Immediacy, Consistency, and Impact
The Process Nature of Compliance and Investigation

Resources:

Nick Gallo on LinkedIn

Ethico

The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action

Tom

Tags DOJ, extensive remediation, FCPA, FCPA Survival Guide, investigations, Nick Gallo

FCPA Survival Guide

FCPA Survival Guide – Introduction

Post author By admin
Post date May 23, 2024
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How can you survive an FCPA enforcement action? In this special podcast series, Tom Fox and Nick Gallo outline the Top 10 things you can do to reduce your overall fine and penalty, perhaps down to a full declination. All of the actions you can take come from recent DOJ prosecutions under the FCPA and speeches from DOJ representatives. This podcast, sponsored by Ethico, is the companion series to the book The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action.

The Department of Justice (DOJ) has been unequivocal in its expectations for any company facing an FCPA enforcement action. This guide is tailored for compliance professionals and business executives who are part of such an investigation. It outlines the necessary steps to secure the most favorable resolutions, offering a glimmer of hope even in the most daunting circumstances. Since the introduction of the FCPA Corporate Enforcement Policy, the default position for any company that self-discloses a potential FCPA violation to the DOJ is that of a declination. This policy provides a significant advantage, even if a company does not self-disclose or there are aggravating factors, as it allows for substantial discounts from the DOJ. In the words of the DOJ, this guide details the actions a company can take to reduce any fine or penalty for an FCPA violation, providing a clear path to a more favorable outcome.

In this 10-part podcast series, we will examine the following tactics for reducing potential exposure if your company finds itself in the FCPA crosshairs:

1. Self-Disclosure.

2. The Need for Speed

3. Extensive Remediation

4. Root Cause, Risk Assessment and Gap Analysis.

5. Data Analytics.

6. Clawback and Holdbacks.

7. Change in sales models.

8. Enhancement of Compliance.

9. Internal Controls.

10. Investigative Protocol

Resources:

Nick Gallo on LinkedIn