In today’s edition of Daily Compliance News:
Tag: Varsity Blues
In today’s edition of Daily Compliance News:
- Varsity Blues goes to trial. (Reuters)
- Facebook rules apply to all, except when they don’t. (WSJ)
- Biden names privacy expert to FTC. (NYT)
- When does harm to business outweigh rights of whistleblowers? (CorderyCompliance)
In today’s edition of Daily Compliance News:
· First Varsity Blues trials to begin in September. (WSJ)
· What’sApp fined €225m by EU for data privacy violations. (CorderyCompliance)
· How should you talk about an employee’s criminal history? (WaPo)
· State of Texas on business outs. (NYT)
I am joined once again by AMI Managing Director Stern. In this episode, we look at a third-party independent in non-profit setting and how it could help universities survive Varsity Blues. Many people might not consider the need for a third-party independent in the non-profit setting. However, in light of the Varsity Blues scandal and the negative publicity around it, there is renewed interest in this approach in an area where it has not previously seen a lot of traction. Most interestingly, Stern believes this will be the “next frontier” for federal, state and local prosecutors. He believes there is a “landscape for potential abuse out there” and that Varsity Blues may only be the starting point.
It really starts from the position that most non-profits have less money than for-profit businesses so their compliance programs are typically not as well invested in. Moreover, most non-profits tend to see themselves, because they typically do not have a profit motive, as not open to waste, fraud and abuse. As Stern said, “they see themselves as wearing white hats and they do not see the need for compliance programs.” Finally, they tend to be very siloed. All these factors make the need for robust compliance even more important.
The bottom line is that after the NCAA basketball corruption scandal, the Varsity Blues college admissions scandal and others, non-profits will be investigated more thoroughly by federal, state and local regulators. Hiring a third-party independent, such as Stern, on a proactive basis can help any entity.
Find out more about Affiliated Monitors Inc. by checking out their website here.
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Update on Varsity Blues
In this episode I visit with Benjamin Britz, a partner at Hughes Hubbard & Reed. We review the current state of the Varsity Blues prosecutions, including the guilty pleas and those still maintaining their innocence. We consider the evidence presented and where the case may be heading.
Britz advises clients on all aspects of corporate governance including government investigations, shareholder class action and derivative litigation, and corporate compliance matters. He has represented clients before all manner of domestic and international enforcement agencies, including the Department of Justice, Securities and Exchange Commission, UK Serious Fraud Office and the enforcement offices of the World Bank, Asian Development Bank and African Development Bank, among others. His practice particularly focuses on anti-corruption compliance, securities enforcement, and accounting and procurement fraud matters. He has performed internal investigations and due diligence exercises around the globe and across an array of different industries.
Some of the highlights include:
- What is the current state of prosecutions?
- What evidence has been presented?
- Might there be ancillary issues involved?
- What will be the fallout for the cooperating witnesses?
- Is money laundering a viable prosecution strategy?
- Will the IRS become involved?
In today’s edition of Daily Compliance News:
- What is ethics? Pimco and Rick Singer (WSJ)
- Big changes coming to Corporate Leniency Program? (DOJ Press Release)
- France seeks trial of former IAAF head. (Financial Times)
- Former South Africa President wants corruption charges thrown out. (Bloomberg)
In this episode I visit with Scott Moritz, the Global Lead, Protiviti Forensics. We discuss the Varsity Blues scandal from the forensic perspective. Some of the highlights from the podcast include:
- What would a root cause analysis show?
- Every college and university need to do a full analysis of its admissions process. From soup to nuts, a complete review.
- With so much in the public domain, there is a clear road map to do so.
- How should you pressure test your control environment?
- What is the curriculum around business ethics? These words must also mean for each institution to look inward.
- What will you do when the government comes knocking?
In this five-part podcast series, sponsored by Affiliated Monitors, Inc. (AMI); I have been joined by AMI Managing Director Stern. We have considered how defense counsel can work proactively with independent monitors to help clients who may have sustained an ethical or compliance violation or are under government scrutiny for allegations of illegal misconduct in a wide variety of industries, disciplines and corporate settings. In this concluding episode, we look at a third-party independent in non-profit setting and how it could help universities survive Varsity Blues. Find out more about Affiliated Monitors Inc. by checking out their website here.
In today’s edition of Daily Compliance News:
- Prosecutors ask for hold on Sunny Balwani SEC civil action. (MarketWatch)
- What’s $5bn among friends? (New York Times)
- Did Varsity Blues parents engage in a conspiracy or just old-fashioned bribery? (New York Times)
- Bank regulators behaving badly. (Financial Times)
