Chapter 3: Carnival’s history as serial polluter catches up to it
This installment looks back at Carnival’s history of environmental law convictions, plea agreements with the DOJ, criminal fines, and environmental compliance plans (yes, there is more than one).
SEC continues torrid whistleblower pace with $10M award
More than a quarter of the SEC’s 94 whistleblower payouts since 2012 have come this fiscal year, the latest a more than $10 million award announced Monday.
Credit to JPMorgan Chase in this week’s banking-themed naughty/nice list
JPMorgan Chase, Danske Bank, Deutsche Bank, and Bank of America all either “Nailed It” or “Failed It” this week.
AIG whistleblower claims in lawsuit he was fired for uncovering fraud
A former attorney for AIG has alleged in a federal whistleblower lawsuit that he was fired after he complained about fraudulent activity related to an attempt to spin off a separate legal services company.
SEC issues two whistleblower awards, cancels meeting on program changes
The SEC has announced nearly $4 million in whistleblower awards this week, though changes to agency’s tipster program set to be discussed Wednesday will once again hit the back burner.
Q&A with Kara Brockmeyer: How pandemic has impacted third-party risk
In advance of her keynote at Compliance Week’s upcoming TPRM virtual event (Sept. 17-18), former SEC official Kara Brockmeyer discussed with CW the heightened risk third parties have during a pandemic and what companies can do about it.
SEC to consider limiting large whistleblower awards, weakening retaliation rule
The SEC had scheduled a Sept. 2 vote on controversial changes to its whistleblower program that, if passed, could weaken the agency’s prohibition of retaliation against whistleblowers and limit large rewards. The meeting has been canceled.
Mass. pharma company will pay $20.75M to settle FCA lawsuit
A Massachusetts-based pharmaceutical company will pay $20.75 million settle a whistleblower’s allegations that the company knowingly promoted misleading instructions for a skin lesion drug that caused doctors to submit false claims to Medicare.
Wells Fargo must do more than pay to redeem fake account scandal
Wells Fargo is now operating under a different regime, but what have the billions of dollars the bank has spent in attending to the compliance failures that arose out of its fake account scandal delivered? Not enough, posits Martin Woods.
McDonald’s handling of ex-CEO scandal gets compliments, criticism
A fresh podcast from the Theranos whistleblower and a new compliance association for Black practitioners get a round of applause from us this week, while a complicated case involving McDonald’s lands the company on both the “Nailed It” and “Failed It” lists.
McDonald’s whistleblower leads to lawsuit against fired CEO
An anonymous whistleblower’s complaint alleging sexual misconduct by fired McDonald’s CEO Steve Easterbrook prompted the company to file a lawsuit attempting to claw back some of the $41 million severance package it paid upon his ouster.
Sen. Grassley to propose whistleblower-friendly FCA amendments
Sen. Chuck Grassley (R-Iowa) is working on legislation that would amend the False Claims Act in a way he says would strengthen the law’s core purpose of helping whistleblowers shine the light on wrongdoing and fraud.
CFTC awards $9M to whistleblower
The Commodity Futures Trading Commission awarded $9 million to a whistleblower whose “specific, credible, and timely tip’ led to a successful enforcement action. The payout is one of the five largest awarded by the regulator since 2014.
Medical device maker projects $18M to settle FCA violations alleged by former CCO
Evidence of kickbacks and bribes brought to light by a whistleblower and former chief compliance officer has led Merit Medical Systems to reach an estimated $18 million agreement in principle with the DOJ to settle False Claims Act allegations.
SEC continues whistleblower payout surge with $3.8M award
The Securities and Exchange Commission has paid out approximately $119 million to 20 whistleblowers in the past 10 months, a trend the agency continued with the latest announcement of a $3.8 million award.
Universal Health Services settles FCA allegations for $122M
Whistleblowers will receive a $16.7 million payday as part of a $122 million settlement between the Department of Justice and Universal Health Services.
CCO Hinton leaves Google to advise whistleblower startup
Andy Hinton told CNBC he left his longtime position as vice president and chief compliance officer at Google in March as he looks toward a new role advising a startup that offers a whistleblower app.
Novartis’ latest settlements: $729M in kickback charges
A week after resolving FCPA investigations for $347 million, Swiss pharmaceutical drug maker Novartis will pay another $729 million in separate settlements related to kickback schemes.
Dems propose coronavirus whistleblower protection bill
A group of prominent Democratic legislators has proposed a whistleblower protection bill designed to help uncover fraud and waste in the trillions of dollars worth of coronavirus-relief funds allocated by Congress.
CFTC awards more than $6M to whistleblower
The Commodity Futures Trading Commission announced a whistleblower award of more than $6 million to a tipster who voluntarily provided original information that led the CFTC to bring a successful enforcement action.
SEC announces record whistleblower award of nearly $50M
The Securities and Exchange Commission announced its largest ever whistleblower award to a single individual at nearly $50 million while denying a second claimant a share of the bounty.
Analysis: When a bonus becomes less incentive, and more compromise
Financial crime expert Martin Woods explores what happens when the annual bonus causes employees to disregard their values for want of a dollar.
Analysis: VW ‘deliberately immoral’ ruling pushes governance lessons
A look at a recent court case against car manufacturer Volkswagen once again places the company in the spotlight but, perhaps more importantly, offers some lessons in how to live up to shareholder expectations of good governance that protects their investment.
Why a ‘don’t put that into writing’ request should raise a red flag
The next time someone tells you not to take notes during a meeting, think about why they’re making that request. It’s almost never a good idea to agree to it, writes financial crime expert Martin Woods.
Coronavirus has made CW2020 a (virtual) gathering like no other
The coronavirus pandemic has made getting together for our annual National Conference impossible, but it’s also made this virtual gathering (Monday and Tuesday) perhaps the most important one we’ve ever had.
SEC, DOJ ordered to review RBS whistleblower’s claim on $4.9B settlement
A federal appeals court ordered two federal agencies to review the whistleblower claims of a former Royal Bank of Scotland employee who is seeking a slice of a nearly $5 billion settlement.
VP’s abrupt exit paints Amazon as coronavirus villain
Saying there is “evidence of a vein of toxicity” running through Amazon’s company culture, a now-former VP is the most prominent voice to speak out against the tech behemoth’s actions during the coronavirus pandemic.
Whistleblowers have never been more important … or more targeted
If there’s anything to be learned from recent examples, it’s that whistleblowers do more than anyone to speak truth to power. That’s why it’s so important they are both listened to and properly protected and rewarded.
Compliance personnel face risks and rewards as SEC whistleblowers
These best practices will guide compliance practitioners turned whistleblower through the process of reporting wrongdoing while protecting themselves from harm.
Analysis: Luckin Coffee saga a case of déjà vu?
Financial crime expert Martin Woods ponders how the SEC can ensure foreign companies, like China-based Luckin Coffee, that publicly trade in the U.S. can apply the proper standards of compliance, financial reporting, and even whistleblower protections.
SEC hands out second top-10 whistleblower award this month
The Securities and Exchange Commission announced the award of $18 million to a whistleblower, continuing a two-month surge in payouts by the agency that has now seen two of its largest bounties to date.
Best practices for maintaining a healthy incident-response program
NAVEX Global’s annual “Risk & Compliance Hotline Benchmark Report” provides chief ethics and compliance officers with best practices on how the performance of their hotline and incident-management programs stack up against their peers.
Analysis: EY now faces questions of trust
In the case of Amjad Rihan versus EY, a question of trust has opened a can of worms. Financial crime expert Martin Woods explores.
Analysis: EY brand takes beating in case vs. whistleblower
What does the Amjad Rihan case do to the brand of EY and, more pointedly, those who spend time with EY as clients? Financial crime expert Martin Woods offers his take.
Terminated whistleblower receives $5M SEC award
A whistleblower terminated by his or her company soon after raising concerns internally about discovered misconduct was the recipient of a $5 million SEC payout—the seventh by the agency in the last month.
U.K. court orders EY to pay $11M to whistleblower, a former partner
A former EY partner who blew the whistle on a massive money laundering scheme was awarded nearly $11 million by a U.K. judge, settling a lawsuit in which he claimed EY buried an audit that uncovered wrongdoing by a client.
SEC awards whistleblower sixth-largest payment ever: $27 million
A whistleblower has been awarded $27 million by the Securities and Exchange Commission, the largest award this year and the sixth-largest payout ever.
SEC continues whistleblower award surge with $2M payout
The Securities and Exchange Commission announced the award of $2 million to a whistleblower—its fifth payout in the last 12 days. For the year, the SEC has already matched its 2019 total of eight awards.
SEC issues rare compliance-related whistleblower award
The Securities and Exchange Commission announced it would award $450,000 to a whistleblower with compliance-related responsibilities—a rarity in the program’s history.
SEC awards $1.6M to whistleblower for case-opening intel
The Securities and Exchange Commission announced an award of more than $1.6 million to a whistleblower whose information formed part of the basis for charges brought in a successful enforcement action.
Ethics and compliance lessons from Astros’ cheating scandal
The Astros’ sign-stealing scandal offers important lessons for leaders of all organizations about the risks associated with a win-at-all-costs or short-term outlook.
10 takeaways from ‘Science of Workplace Investigations’
A former U.S. Department of Justice attorney laid bare the tools in his “lie detection” toolbox to help compliance officers manage this responsibility.
CFPB the latest federal agency to propose whistleblower program
The Consumer Financial Protection Bureau wants Congress to authorize a program that would reward whistleblowers who provide tips leading to successful prosecutions.
DOJ intervenes in whistleblower suit against Mallinckrodt
The Department of Justice has intervened in a whistleblower lawsuit against Mallinckrodt over allegations the drug maker knowingly underpaid Medicaid rebates it owed due to significant price increases to its drug Acthar.
SEC hands out largest whistleblower award in nearly a year
The Securities and Exchange Commission announced the award of more than $7 million to a whistleblower who provided “extensive and ongoing assistance” during the course of an investigation.
SEC subpoenas Mattel in accounting probe
Mattel announced it has received a subpoena from the Securities and Exchange Commission seeking documents related to a previously disclosed investigation that had uncovered accounting errors.
Whistleblowers finding system stacked against them
Are whistleblowers getting the short end of the stick? A recent case highlights one way in which the process for government rewards might be perceived as unfair.
SEC issues first whistleblower awards of 2020
The Securities and Exchange Commission announced its first whistleblower awards of the new year in connection with two separate enforcement actions.
NAVEX Global: Top 10 compliance trends for 2020
A recent Webinar, and complementary report, from NAVEX Global offers a look at the top 10 risk and compliance trends for 2020.
My Compliance Library: ‘Crisis of Conscience’ explores whistleblower culture
The latest installment of My Compliance Library examines “Crisis of Conscience,” a wide-ranging look at whistleblowers and the toxic cultures that lead to their critical role in enacting change.