Close

Are you in compliance?

Don't miss out! Sign up today for our weekly newsletters and stay abreast of important GRC-related information and news.

ICOs, Santa, and the DEA

Katherine O'Hara | September 8, 2017

In case you missed it this week, cryptocurrencies have a historic week, the military continues to ignore sexual misconduct allegations, and a woman learns that lying about cancer and stealing $1m is illegal.

Bad Santa | A U.S. Navy commander and spokesman for the Navy’s top admiral was allowed to keep his position after alleged sexual misconduct. Cdr. Chris Servello was accused of making unwanted passes on coworkers and guests at the 2016 office Christmas party while he was dressed up as Santa. Despite the allegations, he kept his positions until after documents about the incidents were requested by the media. This isn’t the first time the military has been criticized for how they handle sexual assaults or misconduct, which seems to mostly be by disregarding the issue.

Blind eye | The DEA is under fire for largely ignoring an illegal tryst they found out about four years ago. A DEA special agent gave his mistress—a convicted criminal—access to things like evidence rooms, recorded sessions, and the office after hours. When his office found out, they took away security clearance, but then reinstated it three days later.

Unfriendly skies | The Federal Aviation Administration has decided it will not punish United Airlines for its now-infamous passenger-dragging incident in April, when James Dao was forcibly removed from an airliner prior to take off. The plane was fully booked, and United chose Dao at random to remove from the plan to make room for United personnel to catch a flight. Even if United didn't violate Dao's civil rights, as the FAA says, they definitely violated a lot of customer goodwill.

Risky business | The vice chair of the Federal Reserve Board of Governors, Stanley Fischer, announced his resignation this week. This leaves four of seven seats vacant in a branch that largely influences regulations for industries and the economy at large, giving President Trump a greater ability to shape what that team will look like moving forward. But given how divisive nominations have been in the past, it might be a little while before he makes any moves.

Token resistance | Protostarr Token has  decided it might be best to close up shop after getting a call from the SEC. The company was slated to be a new way for internet-based celebrities (see: YouTube, Twitch) to get cash from fans. When the SEC came knocking, they started getting a call-a-lawyer vibe, which they didn’t really have the funds for. So now investors will be getting their money back, and they’ll cease operation—which is a first for a token after direct contact with the regulatory watchdog. I

ICOs hit the wall | China decided to put the kibosh on initial coin offerings (ICOs), a blend of crowdfunding and IPOs, which caused cryptocurrencies to take a bit of a dive. It remains to be seen if other regulatory branches (lookin’ at you, SEC) will follow suit.

Thanks for reading! Keep your eyes glued to this column for another roundup of the latest news from the wider world of compliance. And as always, please send any questions, comments, or leads to katherine.ohara@complianceweek.com.