In this episode, Jay and I have a wide-ranging discussion on some of the week’s top FCPA and compliance related stories. We discuss:

  1. Wrap up from the SCCE European Compliance and Ethics Institute.
  2. SEC Unit Chief Kara Brockmeyer announces her retirement. Click here for Matt Kelly’s article on Radical Compliance.
  3. Wal-Mart announces its 2016 spend on its FCPA investigation and remediation of $99MM. Click here for Matt Kelly’s article on Radical Compliance.
  4. Upjohn warnings after the Yates Memo. See article the Grand Jury Target blog.
  5. Report on OECD Integrity Forum. Allison Taylor writes in the FCPA Blog.
  6. Astros, Red Sox and Dodgers all lead their divisions.
  7. Jay previews his weekend report.

Show Notes:

  1. The SFO announces an investigation into the Swiss engineering giant ABB, Ltd. for allegations of corruption coming out of the Unaoil scandal. See article in the FCPA Blog.
  2. Former Magyar Telekom exec settles with SEC before trial. See article in FCPA Blog.
  3. Tom goes on an extended rant about the ISO 37001 certification process and why it is “worse the useless”. See Tom’s post on the topic on the FCPA Compliance and Ethics Blog.
  4. Jay Rosen’s discusses his new gig with Affiliated Monitors.
  5. Everything Compliance-Episode 7 is out. It is dedicated exclusively to the first two chaotic weeks of the Trump Administration.
  6. Jay Rosen Weekend Report preview.

For some additional reading see:

1.) Mike Volkov Article on Monitors

http://blog.volkovlaw.com/2017/02/yikes-perils-remediation-corporate-monitors/

2.) Jay Rosen Weekend Read

The “Real” FCPA, SCCE + Hello Goodbye

https://www.linkedin.com/pulse/real-fcpa-scce-hello-goodbye-jay-rosen-ccep

3.) Kristy Grant-Hart on The Top Five Myths about ISO-37001 Exposed

http://fcpablog.squarespace.com/blog/2017/2/14/the-top-five-myths-about-iso-37001-exposed.html

4.) Jay Rosen new contact info

Jay Rosen, CCEP

Vice President, Business Development

Monitoring Specialist

Affiliated Monitors, Inc.

Mobile (310) 729-6746

Toll Free (866)-201-0903

JRosen@affiliatedmonitors.com

This episode is dedicated to the chaotic (at best) first three weeks of the Trump administration.

  1. Jonathan Armstrong leads a discussion of the Trump administrations devolution towards Privacy Shield and what it may portend for American companies doing business in the UK and EU. He highlights the recent opening of a new trial in Ireland brought by Max Schrems and also discussed the putative Muslim refugee ban in the context of broader business implications.

For the Cordery Compliance client alert on Privacy Shield, see here

  1. Jay Rosen considers what companies the intersection of business and politics under the Trump administration, the Tech sector response to the Muslim refugee ban and the more general business response to the first few weeks of the Trump administation.

For Jay’s post see, Where Do Politics End and Ethics & Compliance Begin?

  1. Matt Kelly opens with a discussion of the management process practices of the Trump administration in issuing Executive Orders and lays down some markers around compliance and regulatory issues under the new administration.

For Matt Kelly’s posts see the following:

Compliance in the Trump Era: More Markers Placed

Five Questions for SEC Nominee Jay Clayton

Yes Government Ethics is Happening

Dodd-Frank Reform Starts Coming into View

 For Tom Fox’s posts on these topics see the following:

The Trump Administration-Kaos is Bad for Business

The Trump Administration-Part II, Failures in Leadership and Management

The Trump Administration-Part III-Preparing for a Catastrophe

The Trump Administration-Part IV-the Business Response

The members of the Everything Compliance panel include:

  • Jay Rosen (Mr. Translations) – Jay is Vice President of Legal & Corporate Language Solutions at United Language Group. Rosen can be reached at rosen@ulgroup.com.
  • Mike Volkov – One of the top FCPA commentators and practitioners around and is the Chief Executive Officer (CEO) and owner of The Volkov Law Group, LLC. Volkov can be reached at mvolkov@volkovlawgroup.com.
  • Matt Kelly – Founder and CEO of Radical Compliance, is the former Editor of the noted Compliance Week Kelly can be reached at mkelly@radicalcompliance.com
  • Jonathan Armstrong – Rounding out is our UK colleague, who is an experienced lawyer with Cordery in London. Armstrong can be reached at armstrong@corderycompliance.com

In episode Matt Kelly and I take a deep dive into a recent SEC enforcement action involving Susan Diamond, a CCO at a financial advisory firm. She made representations on forms submitted to the SEC regarding the firm’s status, audits and reporting that were material miss-statements. She was severely sanctioned with a $15,000 penalty and a nine-month suspension from working with any investment adviser or financial firm. And after that, she will be barred permanently from working as a compliance officer at broker-dealers and investment advisory firms.

Matt and I explore the question of whether this portends potential more or greater liability and we conclude that it does not for a variety of factors including: (1) the egregiousness of the facts, (2) the prior liability of Diamond and her company, (3) the high regulatory scrutiny afforded to financial advisors, and (4) her outright material miss-statements. We also discuss the recent arrest of a VW compliance officer and detail how the criminal charges against him do not portend additional CCO liability. Finally we conclude with a discussion about the departure of the CCO from VW and what it says about the company’s commitment to an ethical culture.

For more on the Diamond enforcement action, see Matt’s post Ack! CCO Liability is Back Again on Radical Compliance.

Show Notes for Episode 37, week ending January 27, the Jeff Sessions’ edition

  1. Brazilian Judge killed in plane crash. See article by Dick Cassin in the FCPA Blog.
  2. Two individuals charged in Och-Ziff matter. See article by Richard Cassin in the FCPA Blog.
  3. Trump announces White House Compliance Team. See White House Press Release.
  4. Jeff Sessions will continue robust FCPA enforcement. See Questions for the Record submitted January 17, 2017 from Senator Whitehouse in the nomination of Jeff Sessions to be Attorney General.
  5. $7MM whistleblower award by SEC to three persons and Whistleblower conference in NYC. See article in FCPA Blog and Tom Fox article on the Whistleblower Conference.
  6. China leads countries for 2016 FCPA cases and China announces 2 invoice requirement. See Tom Fox article in Compliance Week and Eric Carlson article in the FCPA Blog.
  7. Anything of value in FCPA cases. See Tom Fox article in Compliance Week.
  8. Jay Rosen Weekend Report on continued lessons from the Rolls-Royce global anti-corruption enforcement action in LinkedIn.