Developed by: Jonathan T. Marks with Robert Mainardi
Background
The concept of Internal Control appeared as a practice in the USA at the beginning of the 20th century, whereas in
Establishing and supporting a corporate compliance program is widely recognized as one of the fundamental responsibilities of a corporate board of directors. But merely seeing that there is a compliance program in place is by no means an adequate effort. The Board must also actively oversee that function.
Active oversight is essential if a company’s business plan includes strategies, practices, or other elements that could be considered high-risk. Such situations call for even more involvement and active engagement by the Board.
On February 26, 2021, The Board of Governors of the Federal Reserve System issued guidance on the “Supervisory Guidance on Board of Directors’ Effectiveness.”
This guidance focuses on a board’s
Overview
Chinese police have arrested ten people, calling themselves Chicken Drumstick, connected to an eSports or video game cheating ring that made an outrageous $100 million in profit.
eSports can
Overview
The Foreign Agents Registration Act “(FARA”) was enacted in 1938. FARA requires certain agents (see definition below) of foreign principals (see definition below) who are engaged in political
Overview
The DOJ and SEC have increasingly used data analytics to identify potential wrongdoing and have recently sent messages that companies should follow suit and incorporate data analytics in
One of the FCPA themes for 2020 has been hiding in plain sight all along. The FCPA requirement that “reporting companies to devise and maintain a system of internal accounting controls sufficient to provide reasonable assurances that, among other things, transactions are executed following management’s general or specific authorizations, and access to assets is permitted only in accordance with management’s general or specific authorization.” But what if the violation of this requirement occurs in a non-foreign (IE., the U.S.) and in a non-bribery situation.
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Risk assessments are part of the discipline of risk management, where enhanced frameworks and techniques have emerged. Risk management comprises the identification, assessment, and prioritization of risks followed by the coordinated and efficient use of resources to monitor, minimize, and otherwise control the organization’s risks.
Risks arise in many forms and range from uncertainty in financial markets, operational failures, natural disasters, and pandemics to legal liabilities and reputational harms.
Background
There have been significant releases of information by the federal government which directly impacted compliance professionals. Two came from the Department of Justice and one came from the Department
In 2020, the DOJ and SEC brought FCPA enforcement actions against 12 companies and imposed financial penalties totaling a record $6.4 billion. For a comparison, in 2019, 14 companies paid a (then) record $2.9 billion to resolve FCPA cases.
Are you exposed?
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On January 12, 2021, the U.S. Attorney’s Office for the Eastern District of California announced the first civil settlement with a borrower for allegedly committing fraud in obtaining a Paycheck Protection Program (“PPP”) loan, in violation of the False Claims Act (“FCA”) and the Financial Institutions Reform, Recovery and Enforcement Act (“FIRREA”).
The FCA allows the government to recover damages and penalties for presenting false claims for payment to the United States. FIRREA allows the government to impose civil penalties for violations of enumerated federal criminal statutes, including those that affect federally-insured financial
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In summary, The Amendments double the SEC’s statute of limitations for disgorgement to 10 years in intentional fraud cases, grant the SEC 10 years to seek equitable relief in all cases, codify the SEC’s ability to obtain disgorgement in federal court proceedings, and make other changes that expand the SEC’s enforcement authority.
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We are introducing our first annual virtual Baker Tilly Fraud and Compliance Summit, hosted by Jonathan T. Marks, who leads Baker Tilly’s Global Forensic, Compliance, and Integrity Services Practice.
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On December 11, 2020, the Senate passed the Anti-Money Laundering Act of 2020 (“AMLA” or the “Act”) – DIVISION F of the National Defense Authorization Act for the fiscal year 2021 (the “NDAA”). The House of Representatives had previously passed the measure on December 8, 2020.
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Happy New Year, and thank you to the more than 100,000 people that visited Board and Fraud in 2020!
With everything that happened last year, fraud, compliance, and risk management have arguably become more important than ever.
Background
The Securities and Exchange Commission (”SEC”) announced an award of more than $300,000 to a whistleblower whose high-quality information and continuing assistance significantly contributed to a successful enforcement
Money laundering issues have haunted many over the years. To promote greater transparency, the U.S. Senate has approved legislation requiring companies in the U.S. to register their true owners. This change would help combat money laundering and the financing of terrorism.
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Background
The Securities and Exchange Commission (“SEC”) charged the former Corporate Controller of CEB Inc. and his brother-in-law with insider trading in advance of a public announcement about CEB’s acquisition
Background
The Securities and Exchange Commission (“SEC”) today charged New York-based brand-management company Sequential Brands Group, Inc. (“Sequential or “SQBG”) with failing to impair its goodwill as required by accounting
In mid-March 2020, Cheesecake Factory (“company”) faced an unprecedented challenge to its business from the COVID-19 pandemic impact. In that context, the company issued several
Adapted from Robin Burton’s Article in the Anti-Corruption Report, November 11, 2020
Background
Since the passing of Sarbanes-Oxley in 2002, I have noticed that Boards of Directors have become more
The Securities and Exchange Commission (“SEC”) entered an “Order” on September 23, 2020, against JonesTrading Institutional Services LLC (“firm”), a broker-dealer located in California, for failing to retain text messages relating to the firm’s business. The SEC fined JonesTrading $100,000. Read more!
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Do You Know Why Your Employees are Leaving?
Exit interviews (“EI”) are usually conducted when an employee terminates. However, many interviews are not designed to unearth potential issues and information
Under the U.S. Federal Sentencing Guidelines, in order to receive credit for having an effective compliance program, and thereby reduce the fines imposed on the organization, a Board of Directors must be “knowledgeable about the content and operation of the compliance and ethics program,” and must “exercise reasonable oversight with respect to the implementation and effectiveness of the compliance and ethics program.”
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Background
A ransomware infection can have a significant financial impact on an organization. American digital security and data backup firm » Read More
