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Justice Department

Compliance Rescues Morgan Stanley From FCPA Prosecution

Jaclyn Jaeger May 08, 2012

Morgan Stanley was exonerated from Foreign Corrupt Practices Act violations last month, despite a guilty plea by one of its top executives. The Justice Department and the SEC are citing the bank's strong compliance program for why it declined to pursue charges. "Corporate America has been sent a clear message that those who try will be rewarded," says Roy Snell, CEO of the Society of Corporate Compliance and Ethics.

How BizJet Convinced the Justice Department to Go Easy

Jaclyn Jaeger March 27, 2012

After aviation maintenance company BizJet uncovered potential Foreign Corrupt Practices Act violations, the company reacted swiftly, launching an internal investigation and notifying the Justice Department. The actions earned the company goodwill for "extraordinary cooperation," and a 30 percent reduction in its FCPA fines. More details inside.

More FCPA Defendants Opting for Trials Over Settlements

Jaclyn Jaeger January 10, 2012

Defendants in Foreign Corrupt Practices Act cases are increasingly opting to fight the Department of Justice in court rather than agreeing to prepackaged settlements, and more of them are winning. "For so many years, FCPA enforcement rarely saw the inside of a courtroom. Thankfully, that is beginning to change," says Mike Koehler, a law professor at Butler University.

SciClone Raises Standards, and Eyebrows, With FCPA Deal

Jaclyn Jaeger November 29, 2011

SciClone Pharmaceuticals, a middle-weight drug development business with only 260 employees, struck a memorable blow for corporate compliance this month: The company agreed to profound changes in its anti-corruption program solely to settle a shareholder lawsuit. "I'm not aware of any other case, certainly in the FCPA area, where this sort of result has occurred," says Lucinda Low of the law firm Steptoe & Johnson.

'Price Reduction Clauses' Raise False Claims Act Perils

Jaclyn Jaeger October 18, 2011

A $200 million False Claims Act settlement Oracle reached with the federal government is yet another reminder of compliance perils when selling complex products to Uncle Sam. At issue is the price-reduction clause, which requires contractors to offer the lowest price given to other comparable customers. In industries where pricing isn't always transparent, compliance is no easy task.

Don't Enter Into Prosecution Agreements Lightly

Jaclyn Jaeger 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.

Justice Department Targets Foreign Documents in Antitrust Probe

Jaclyn Jaeger May 17, 2011

Defense attorneys are lashing out over an aggressive new tactic by the Justice Department to retrieve foreign documents by subpoenaing them from law firms that are involved in parallel civil lawsuits—which critics say is an over-reach of the department's subpoena power. The matter has split federal courts and is nearly certain to head to the U.S. Supreme Court. Details inside.

Mendelsohn Takes His Leave

Matt Kelly April 15, 2010

I could be cute and say, “Farewell, Mark Mendelsohn, we hardly knew ye!” but that would not be accurate. For most corporate compliance officers at U.S. corporations, Mark Mendelsohn has loomed large in their lives at least figuratively, and often personally, for years. No longer.Mendelsohn, of course, was the Justice...

The Regulator Dilemma: No Right Answer

Matt Kelly March 29, 2010

I hosted another of our Compliance Week editorial roundtables last week, this time co-hosted by Deloitte and looking particularly at compliance challenges in the pharmaceutical sector. At first I wasn’t sure how the discussion might unfold; Compliance Week normally doesn’t delve too deeply into any single industry’s compliance regime, because...

Judge Uncorks True Feelings About Compliance Monitors

Matt Kelly March 22, 2010

God, I love it when a federal judge goes off-script. Most events in federal court are terribly dull, the carefully scripted culmination of legal briefs fired back and forth among various parties for years. But once in a great while, a judge goes a little nuts—as happened last week with...

Power Grab

Matt Kelly February 08, 2010

Chief compliance officers may want to re-read that old copy of The Prince and go for the office power grab in 2010. Apparently all the cool kids in corporate governance support you already.Within the last several months, we’ve seen numerous signs—regulatory settlements, best practices guides, proposed revisions to the U.S....

Securities Regulation Institute, Concluded

Matt Kelly 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...

Just in From the Revolving Door File...

Matt Kelly 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...

Compliance Tips From People Who Know

Matt Kelly 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...

Best Practices for Internal Investigations

Matt Kelly 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

Matt Kelly 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...

What Attorney General Eric Holder Means to You

Matt Kelly 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...

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