Investigations

The High Cost of FCPA Investigations

April 17, 2012

Forget about fines and penalties to settle a Foreign Corrupt Practices Act investigation; simply conducting one can run into the hundreds of millions of dollars. Just ask Avon: The cosmetics company has spent $249 million since 2009 to investigate charges of FCPA violations. Inside are more examples of those racking up massive FCPA costs and tips to hold down expenses.
 

The Reasonable Person: Internal Audit's Role in Internal Investigations

November 08, 2011

Yes, sometimes the best response to an allegation of misconduct is to commission an external investigation—but in many cases, an internal investigation will do just as well. How can you assure objectivity and independence in those cases? Inside, Compliance Week Columnist José Tabuena explores internal audit's role in serving as the "reasonable person" whose expectations are what counts in court.
 

Don't Enter Into Prosecution Agreements Lightly

September 27, 2011

Companies may view deferred-prosecution and non-prosecution agreements as a common vehicle to put government investigations behind them, but several recent DPAs and NPAs—with a slew of restrictions and obligations attached—are reminders that such deals aren't easy. The key to success: a speedy internal investigation. "You have to get ahead of it," says Brian Baldrate of the law firm Gibson Dunn.
 

How to Handle Internal Investigations

June 07, 2011

Internal investigations are a critical component of a robust compliance program; without the ability to investigate allegations of wrongdoing, your company's credibility with regulators is pretty much sunk. At Compliance Week 2011, a trio of compliance professionals shared their approaches. Their ideas and advice are inside.
 

Using Law Enforcement Techniques in Investigations

May 10, 2011

Those hours spent watching spy movies and crime shows just might pay off for compliance officers. Some former FBI agents, turned corporate investigators, say that corporate compliance departments must borrow law enforcement techniques to detect and deter corporate misconduct effectively. Inside, some tips on how to do it.
 

How to Respond to a DoJ Investigation

April 19, 2011

Moving swiftly and decisively when the Justice Department or another government agency launches an investigation can make the difference in how the case proceeds. Companies deemed to be cooperating with investigators can expect better treatment and reduced fines. Inside, some dos and don'ts for responding to an investigation.
 

Congressional Investigations Set to Multiply

February 01, 2011

Congress, hiring investigative units and firing off angry invective against regulatory agencies and big industry alike, is sending out early signals that it plans a busy season of investigations and inquiries. Plan accordingly.
 

The Directors’ Role in Special Investigations

September 14, 2010

Amid increased public scrutiny of corporate boards, directors are feeling more pressure than ever to be vigilant in their oversight duties. One of the less pleasant tasks they may face: overseeing a special investigation. And thanks to the newly enacted Dodd-Frank Act, that task may become much more common, too.
 

Podcast: The ‘Fraud Pentagon’ to Find Corruption

April 06, 2010

Compliance Week chats with Jonathan Marks of the audit firm Crowe Horwath about his “fraud pentagon” model to find people who may be committing fraud.
 

Securities Regulation Institute, Concluded

January 28, 2010

Last week I filed a dispatch from the Securities Regulation Institute’s annual conference out in San Diego, focusing on the first day’s agenda of SEC policy and risk management challenges. Before I forget, let’s circle back to review the main points of Day 2: enforcement.The stars of the day were...
 

Surviving a Congressional Investigation

January 26, 2010

The kickoff meeting of the Financial Crisis Inquiry Commission earlier this month, impaneled to root out the causes of the Wall Street meltdown in 2008 and 2009, is only one of many Washington-backed investigations to come this year. Corporate executives should plan accordingly.
 

Just in From the Revolving Door File...

January 16, 2010

You may have missed it among the orgy of SEC enforcement news this week, but over at the U.S. attorney’s office in Manhattan, the lead prosecutor of the Galleon Group insider-trading case is quitting—to start his own practice in white-collar defense.Joshua Klein, an assistant attorney in the Southern District of...
 

Defining ‘Good Faith’ in Internal Investigations

Finder Larry November 10, 2009

At the request of subscribers, Compliance Week offers a Remediation Center, in which readers can submit questions—anonymously—to securities and accounting experts. Compliance Week’s editors will review all questions and then submit them—confidentially, of course—to specialists who can address the issues. The questions and responses will then be reprinted in a future edition of Compliance Week. Below is one of the Q&As; Ask your own questions by clicking here.
 

Compliance Tips From People Who Know

September 15, 2009

Any compliance officers looking for ammunition to take into budget planning meetings for 2010, I have some for you—not that the news is exactly what corporations want to hear.I’ve been attending the Society for Corporate Compliance and Ethics’ annual conference for the last two days, and this morning attendees heard...
 

Deutsche Bank Spying Scandal Brewing

July 07, 2009

In a development reminiscent of the Hewlett Packard spying scandal from 2006, the German press is reporting that Deutsche Bank spied on certain of its board members and a "troublesome shareholder," as well. According to Spiegel Online, an investigation commissioned by Deutsche Bank that resulted in a 150-page report by...
 

Podcast: Proper Upjohn Warnings

April 24, 2009

Podcast: Proper Upjohn Warnings
 

Best Practices for Internal Investigations

April 20, 2009

All right, we’re going to say it: Occasionally prosecutors go overboard.This is a big admission for Compliance Week, because like good reporters everywhere, we tend to be cynical people. When we hear the word “indicted” we assume “guilty” and wonder when the person in question will resign. Lately, however, we’ve seen...
 

The New Pressures on Compliance Officers

February 02, 2009

Last week, I had the pleasure of moderating a roundtable forum in New York on supply chain compliance, and the debate turned to a theme I often hear at these discussions: How far should your compliance program go to please government regulators?On one side were the realists, arguing that no...
 

Satyam: Sanskrit for 'Compliance Nightmare'

January 11, 2009

Foolish me—I’ve always thought the phrase “fraud risk in emerging markets” referred to some two-bit shyster in a foreign land, rushing out from his flimsy storefront operation to seduce a clueless U.S. business partner.Little did I know that the phrase also includes Satyam, the (supposedly) $2.6 billion IT services business...
 

What Attorney General Eric Holder Means to You

November 19, 2008

Corporate America had its first glimpse into the Obama Administration’s thinking yesterday with the news that Eric Holder, a partner at the law firm of Covington and Burling, will be nominated to be our next attorney general. Sure, we’re still in the rumor phase of this news, but the Obama...
 

Bots Gone Bad

September 09, 2008

Yesterday, at approximately 9:53 am, a headline appeared on Bloomberg screens worldwide stating "UAL Corp.: United Airlines files for Ch. 11 to cut costs."  In a blink, the airline's stock fell from around $12 to $3 a share, and Nasdaq quickly halted trading.  About an hour later, UAL issued a...
 

Internal Due Diligence Form

Anonymous August 26, 2008

This document, submitted by the compliance director at a $1+ billion company in the energy services business, is a form used in internal due diligence for intermediaries, related to the Foreign Corrupt Practices Act (FCPA). According to the submitter, the form "is an initial step in the process. For intermediaries that meet certain requirements, they are required to join TRACE, and undergo further due diligence."
 

Fraud Response Plan

Anonymous July 31, 2008

Excellent example of a fraud response plan, submitted by the internal audit leader of a $1+ billion semiconductor design firm. Includes a "Sample Document Preservation Memorandum," which could be useful for others to review for consideration at their own companies.
 

Compliance Program on FCPA and Ethics Business Practices

Anonymous July 31, 2008

Weighing in at 28 pages, this FCPA policy covers responsibilities of the compliance committee, methodology behind educational programs, details on employee "obligations," and books-and-records procedures, as well as policies on gift, business entertainment, facilitating payments, and more.
 

Due Diligence Checklist

Anonymous July 25, 2008

Very simple three-page outline that looks at due-diligence evaluation and audit issues. Nothing earth-shattering here, but a nice look at some of the key issues to be reviewed and considered.
 

Lockheed Martin FCPA Policy

MacKay Scott July 10, 2008

23-page policy document, provided by Lockheed Martin Vice President and Deputy General Counsel Scott MacKay. Part of a presentation delivered at Compliance Week 2008 in Washington, D.C., the document includes extensive background and history, as well as "A Practical Guide to FCPA Due Diligence."
 

Hewlett-Packard: The ‘How Not To’ Guide

Martinek Paul J. September 26, 2006

Hewlett-Packard built a legendary reputation in Silicon Valley for its kinder, gentler “HP Way” of conducting itself—but as anyone reading the headlines these days can see, how HP conducts investigations may be a different story.
 

Managing Internal Investigations: An In-House Perspective

Choo Katherine M. September 20, 2006

This presentation by Katherine Choo, a senior lawyer at General Electric, was delivered at a PLI program. The document, in outline form, discusses when to retain outside counsel, early considerations in the investigation, cooperation with government investigations, and more.
 

The Do-It-Yourself Backdating Probe

August 01, 2006

If executives know anything about options timing—now that the Securities and Exchange Commission is insisting on more disclosure and the Justice Department is filing criminal charges—they know that the issue is here to stay.
 

Investigations: Start Strong, Or Finish Weak

Martinek Paul J. July 18, 2006

No executive wants an investigation into wrongdoing at his company to end poorly. The key to avoiding that fate, legal specialists say, is to be sure the company’s own internal investigation starts strongly.
 

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Survey of the Week


Deloitte is conducting their annual Look Before You Leap: Managing Risks in Global Investments survey to better understand the approaches companies are taking to address compliance and integrity-related risks in emerging markets. 

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