You may have noticed a risk factor in annual reports and SEC registration statements about “conflicting laws and regulations.” Once rare, the warning has become common, thanks to globalized operations and proliferating regulators.… Continue Reading
The SEC has awarded 123 whistleblowers an astounding $731 million since the first payout in 2012. But what do we really know about the whistleblower program? The SEC’s Office of the Whistleblower recently released its 2020 Annual Report to Congress, and it raises more questions than it answers.… Continue Reading
While we have understandably been distracted by the challenges of 2020 – from serious concerns about our health and the well-being of our loved ones to not-so-serious concerns of how we look on video conferences – things in the FCPA world have been humming along.… Continue Reading
Connecticut-based Alexion Pharmaceuticals, Inc. agreed to pay $21.4 million to resolve SEC charges that the company violated the FCPA by bribing foreign officials in Turkey and Russia, and failing to maintain accurate books and records at subsidiaries in Brazil and Colombia.… Continue Reading
In the prior post, I described recent FCPA enforcement actions — involving Stryker, Polycom, Microsoft, and Juniper Networks — which show that the SEC is on an ‘internal controls rampage’ involving the way issuers (public companies) establish and manage relationships with third parties, particularly distributors and resellers.… Continue Reading
Over the last two years, the Securities and Exchange Commission has set its sights on distributor and reseller relationships, and excoriated companies that failed to adequately manage and supervise them. The focus on these third-party relationships is part of the agency’s broader application of the FCPA’s internal controls provision in an increasingly aggressive manner.… Continue Reading
In a recent speech, the Chairman of the SEC argued that other countries’ failure to enforce foreign anti-bribery and corruption laws may put U.S. companies at a competitive disadvantage to foreign firms.… Continue Reading
It is no secret that the global commodities trading sector is rife with corruption risks. We at Global Witness have been investigating this for years, and have seen enforcement efforts fall short all too often.… Continue Reading
The Big Three credit rating agencies — Standard & Poor’s, Moody’s, and Fitch Group — control about 95% of the market. They played a pivotal role in causing the 2008 financial meltdown.… Continue Reading
The former head of the nation’s biggest pension fund pleaded guilty in federal court in San Francisco to taking bribes and helping an associate collect millions in a fraudulent investment scheme.
Fred Buenrostro Jr.… Continue Reading
Accounting giant Ernst & Young will pay $4 million to settle civil charges that it violated auditor independence rules after one of its units lobbied congressional staffers on behalf of audit clients, the Securities and Exchange Commission said Monday.… Continue Reading
The SEC’s Office of Compliance Inspections and Examinations (OCIE) issued a Risk Alert in April with additional information about its Cybersecurity Initiative.
The Risk Alert is particularly relevant after news this week that the SEC has opened investigations of Target and other companies examining whether they properly handled and disclosed a growing number of cyberattacks.… Continue Reading