Corruption Crime & Compliance

The Justice Department’s Antitrust Division recently announced the indictment in Colorado federal court of four executives from two chicken producer companies for participation in a long-running price-fixing and bid-rigging conspiracy in the sale of broiler chickens to grocers, fast-food companies and other sellers of chicken products. In this episode, Michael Volkov reviews the indictment, the factual allegations and reviews antitrust compliance lessons learned.

The Department of Justice quietly issued revisions to its Corporate Compliance Program Guidance.  DOJ's revisions underscore important new trends in corporate compliance -- the importance of resources and empowerment, continuous monitoring, proactive strategies, access to and use of data, consistent discipline and new, training strategies. In this episode, Michael Volkov reviews DOJ's changes to its Corporate Compliance Guidance and puts the changes in perspective to the rapidly evolving compliance profession and industry.

Paul Kruse, former CEO of Blue Bell Ice Cream, was recently charged with criminal charges stemming from the sale of contaminated ice cream, resulting in the death of three persons.  Kruse was aware of serious safety and contamination issues arising from the production of Blue Bell ice cream.  Notwithstanding his knowledge, Kruse ignored safety concerns and withheld critical information from its customers and consumers. In this episode, Michael Volkov reviews the criminal charges lodged against Paul Kruse.

Boeing Airlines was the leader in safety and financial success.  Unfortunately, Boeing has suffered a significant fall from grace as a result of its 737 Max safety record and two devastating crashes in Indonesia and Ethiopia. The Boeing safety scandal has had a devastating impact on Boeing's performance and uncovered a corporate culture that has been obsessed with financial performance to the detriment of safety and respect for regulatory requirements. In this episode, Michael Volkov reviews the Boeing safety scandal and outlines some of the corporate culture issues.

The Covid-19 pandemic has had a devastating impact on everyones' life.  Businesses have had to adjust rapidly to a new world, filled with significant healthy and safety risks, along with business survival and continuity issues.  Companies have reacted with crisis management strategies.  As part of this response, companies have to implement a new risk profile and allocate resources accordingly. In this episode, Michael Volkov reviews the new risk and compliance paradigm.

In a two-part series, Michael Volkov examines the continuing problem of identifying and mitigating beneficial ownership risks.  Money launderers and corrupt individuals continue to rely on corporate structures to disguise their ownership interests to further illicit schemes.  Companies have to develop strategies that practically address the risks without dedicating disproportionate resources to the problem. In the first episode, Michael Volkov discusses beneficial ownership risks and the contexts in which they arise. In the second episode, Michael Volkov discusses practical approaches to mitigating beneficial ownership risks.

In a two-part series, Michael Volkov examines the continuing problem of identifying and mitigating beneficial ownership risks.  Money launderers and corrupt individuals continue to rely on corporate structures to disguise their ownership interests to further illicit schemes.  Companies have to develop strategies that practically address the risks without dedicating disproportionate resources to the problem. In the first episode, Michael Volkov discusses beneficial ownership risks and the contexts in which they arise. In the second episode, Michael Volkov discusses practical approaches to mitigating beneficial ownership risks.

The Justice Department recently resolved two food safety criminal cases involving Blue Bell Ice Cream and Chipotle Mexican Grills.  In its largest food safety recovery to date, Chipotle agreed to a three-year deferred prosecution agreement and paid $25 million.  In the Blue Bell Ice Cream case, Blue Bell agreed to plead guilty and pay $19.5 million in fines and penalties.  Blue Bell's former CEO, Paul Krause, was indicted for conspiracy and wire fraud in an unsealed indictment. In this episode, Mike Volkov discuss these two important criminal cases.    

Companies face new challenges in employee relations and promoting employee engagement in the COVID-19 pandemic era.  Companies have to ensure employee a safe workplace with appropriate modifications to mitigate COVID-19 risks.  At the same time, companies have to reinforce the importance of reporting employee concerns, and respond to these concerns in a prompt and reliable manner. In this episode, Michael Volkov discusses the new employee relations issues along with important steps to promote a culture of safety and ethics.

Despite the COVID-19 pandemic, the SEC entered into a settlement with Eni for $24.5 million for FCPA violations.  In another matter, the SEC filed an FCPA case against a former Goldman Sachs executive for bribery in connection with business on behalf of a client in Ghana. In this episode, Michael Volkov reviews these two enforcement actions.