Corruption Crime & Compliance

The Justice Department and the FBI have quickly acted to focus on fraudsters and hoarders who are preying on the public panic in response to the pandemic. DOJ has focused on new fraud schemes promising miracle cures and other means to take advantage of the public on the Internet.  At the same time, DOJ and the FBI have targeted hoarders of critical medical supplies who are attempting to price gouge as a way to "steal" from businesses and the public through significant price gouging. In this episode, Michael Volkov discusses DOJ's new initiatives and response to the pandemic.

Judge Stanley Sporkin, a mentor, friend and professional colleague, died at age 88 on March 23, 2020. In a personal tribute to Judge Sporkin, I recount Judge Sporkin's career and some recollections of my relationship with him.

COVID-19 has had a devastating impact.  The public health crisis has caused tragic human loss and is overwhelming the United States healthcare system.  Businesses have suffered along with the public. Business face real challenges managing the crisis, their respective supply chains and employees. In the second part of a two-part series, Mike Volkov reviews important business responses and strategies for coping with the pandemic.

COVID-19 has had a devastating impact.  The public health crisis has caused tragic human loss and is overwhelming the United States healthcare system.  Businesses have suffered along with the public. The lack of federal leadership has been glaring.  States and local governments are coping the best they can despite the obvious absence of federal leadership. In this two-part episode -- the second part will be dropped tomorrow, Monday -- Mike Volkov examines the federal and Congressional response to the COVID-19 crisis and outlines the importance of business ethics.

Companies need to review and enhance their antitrust compliance programs, especially those companies with tangible antitrust risks. In designing an effective antitrust compliance program, there are five key elements to an antitrust compliance program: (1) Risk Assessment;  (2) Culture and Senior Management Buy-In; (3) Monitoring and Testing; (4) Training; and (5) Speak Up and Reporting Systems. In this Episode, Michael Volkov discusses the key elements of an effective compliance program.

An effective third-party risk management program has to include robust monitoring and auditing strategies.  This episode is a companion to Episode 129 on creating a third-party risk profile. In this episode, Michael Volkov outlines strategies for monitoring and auditing your third-party population.

The Treasury Department's Office of Foreign Asset Control ("OFAC") is aggressively enforcing OFAC sanctions rules.  Last year, OFAC issued its Framework for Sanctions Compliance Programs, which includes a specific requirement for companies to conduct a "holistic" risk assessment. In this episode, Michael Volkov outlines practical strategies for conducting a sanctions risk assessment.

Companies continue to refine their third-party risk management programs.  As an initial step, companies have to create a third-party risk profile for its population.  To accomplish this task, companies have to classify and stratify their third parties. In this episode, Michael Volkov discusses how to review your third-party population and create a risk profile.

Companies are rapidly implementing automated solutions for compliance program functions.  Technology accelerates compliance program performance and creates opportunities to measure and evaluate a company's compliance program. In this Episode, Michael Volkov discusses how to measure and evaluate a compliance program using data generated from automated platforms.  

In a comprehensive enforcement action, the Office of the Comptroller of Currency (OCC) announced a $17.5 million settlement with former Wells Fargo Bank CEO John Stumpf for his  role in the sales practices misconduct scandal. In addition, the OCC announced settlements with two other Wells Fargo executives: (1) Hope Hardison, former Chief Administrative Officer and Director of Human Resources, Cease and Desist Order and $2.25 million civil money penalty; and (2) Michael Loughlin, Chief Risk Officer, Cease and Desist Order and $1.25 million civil money order. In addition to the specific settlements, the OCC initiated penalty notices against five former Wells Fargo officials, including: (1) Carrie Tolstedt, Head of the Community Bank, Prohibition Order and $25 million civil money penalty; (2) Claudia Russ Anderson, Community Bank Group Risk Officer, Prohibition Order and $5 million civil money penalty; (3) James Strother, General Counsel, Personal Cease and Desist Order and $5 million civil money penalty; (4) David Julian, Chief Auditor, PC&D Order and $2 million civil money penalty; and (5) Paul McLinko, Executive Audit Director, PC&D Order and $500,000 civil money penalty. The facts outlined by the OCC in the enforcement actions paint a damning picture of misconduct.   In this Episode, Michael Volkov takes a deep dive into the scandal and the OCC's enforcement action.