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Tag Archives: SEC

Compliance, Securities and Commodities

SEC’s OCIE Issues a Second Cybersecurity Risk Alert

On Sept. 15, 2015, the Securities Exchange Commission (SEC) Office of Compliance Inspections and Examinations (OCIE) published its second cybersecurity risk alert (the “2015 Risk Alert”). The 2015 Risk Alert is a follow up to the OCIE’s April 2014 cybersecurity initiative risk alert (the “2014 Risk Alert”) announcing a series of examinations to identify cybersecurity… Continue Reading
Anti-Bribery and Corruption, Anti-Money Laundering, Compliance

SEC and FinCEN Delivering One-Two Punch to Private Equity

Starting in January, it was widely reported that the SEC had upped its FCPA scrutiny of private equity funds required to register as investment advisers under Dodd-Frank, with requests for information being issued to a number of funds in connection with their courting of sovereign wealth funds. For many newly-regulated funds, this was likely viewed… Continue Reading
Compliance, Fraud, Deception and False Claims, Securities and Commodities

SEC’s Whistleblower Program Awards Over $3 million to Company Insider

On Friday, July 17, the Securities and Exchange Commission (SEC) announced that it will award more than $3 million to a company insider who helped the SEC “crack a complex fraud.” The SEC’s whistleblower program was adopted under the Dodd-Frank Act of 2010. It rewards high-quality, original information that results in enforcement actions exceeding $1… Continue Reading
Anti-Bribery and Corruption, Compliance, Securities and Commodities

China’s Focus on Combatting Commercial Bribery Is a Wake-Up Call

Earlier this month, six former employees of Tencent Holdings (Tencent), including Liu Chunning, a now high-level executive of Alibaba Group, were detained by Chinese authorities as part of a bribery investigation relating to payments made by online video content providers to employees of Tencent, including Liu. In addition to showcasing the continued fight against graft… Continue Reading
Compliance, Securities and Commodities

SEC Division of Investment Management Issues Cybersecurity Guidance for Investment Funds and Advisers

The U.S. Securities and Exchange Commission’s (“SEC”) Division of Investment Management (“Division”) recently released a Guidance Update (“Guidance”) highlighting the importance of cybersecurity for registered investment companies (“funds”) and registered investment advisers (“advisers”). In the Guidance, the Division identified a number of measures for funds and advisers to consider in addressing cybersecurity risk and rapid… Continue Reading
Securities and Commodities

SEC Charges Group of Unregistered Broker-Dealers Trading in Corporate Bond Market

Last week, the Securities and Exchange Commission (SEC) charged more than 20 individuals and companies with violations of the Securities Exchange Act of 1934 (the Exchange Act) related to the buying and selling of investment-grade corporate bonds. The SEC charged the respondents with trading in corporate bonds without first registering as broker-dealers. Two respondents, Global… Continue Reading
Compliance, Fraud, Deception and False Claims, Securities and Commodities

Inadequate Internal Controls Cost Tech Firm $750,000

Without admitting or denying the U.S. Securities and Exchange Commission’s findings, Polycom Inc. settled with the agency on Tuesday, March 31, 2015, over alleged insufficient internal controls and disclosure violations for personal perk expenses. Andrew Miller, Polycom’s former CEO, traveled to Indonesia and South Africa with his girlfriend, took limousine rides, and purchased dress shirts,… Continue Reading
Anti-Bribery and Corruption, Compliance, Enforcement and Prosecution Policy and Trends, Financial Institution Regulation, Fraud, Deception and False Claims, Securities and Commodities

Biomet FCPA Announcement Highlights Distributor-Related Risks

Last week, Biomet Inc. announced in a filing with the U.S. Securities and Exchange Commission (SEC) that instead of its 2012 deferred prosecution agreement with the U.S. Department of Justice (DOJ) regarding violations of the U.S. Foreign Corrupt Practices Act (FCPA) expiring this week, the company would be monitored under it for an additional year.… Continue Reading
Anti-Bribery and Corruption, Fraud, Deception and False Claims

Civil fraud damages claims begin in the UK following a corruption prosecution by the SFO and the DOJ against Innospec and others

In a recent decision of Mr Justice Flaux in the case Jalal Bezee Mejel Al-Gaood & Partner v Innospec Limited and Others, the Claimants sued for damages which they claimed arose as a result of the Defendants having bribed the Iraqi Ministry of Oil (“MOO”) to purchase their chemical products, TEL.  The claim for damages… Continue Reading
Anti-Bribery and Corruption, Compliance, Enforcement and Prosecution Policy and Trends, Fraud, Deception and False Claims

UK Government’s Response to the Department for Business, Innovation and Skills “Whistleblowing Framework: Call For Evidence”

Crucially businesses should be confident that reprisals against whistle-blowers are not an issue for them, and that their organisation understands and trusts any whistleblowing policy and procedure they have in place. Deficiencies in these areas may very well lead to a Regulator challenging the overall effectiveness and adequacy of an organisations compliance programme.… Continue Reading
Anti-Bribery and Corruption, Compliance, Election and Political Law, Enforcement and Prosecution Policy and Trends

Weatherford’s “loose controls and anaemic compliance” leads to $253 million bribery and sanctions penalties

This is a salutary tale for any companies, wherever they are situated in the world, which still think that their illegal activities will never be discovered. Usually it is only a question of time, and the penalties can be huge, as well as the impact on the business in sorting it all out.… Continue Reading
Anti-Bribery and Corruption

EU takes first step towards a European version of the FCPA

The EU has in a series of votes agreed a draft anti-corruption law to make it illegal for oil, gas and mining companies to give illicit payments to officials in resource-rich nations that lack strong governance...One of the objectives is to help foreign nationals track more easily what happens to monies paid to their own foreign governments, so that they can hold the government ministers accountable for these monies… Continue Reading
Anti-Bribery and Corruption

RICO suit being pursued in the US, relating to the charges brought against Victor Dahdaleh by the Serious Fraud Office

The RICO suit....reinforces our view that...when defendants become involved in allegations of corruption they may have to face multiple sets of criminal proceedings around the world as well as civil suits and the threat of public procurement debarment in the United States and the European Union. Winning contracts by illegal means can lead to the perfect legal storm.… Continue Reading
Anti-Bribery and Corruption, Enforcement and Prosecution Policy and Trends, Financial Institution Regulation

Innospec Ltd: Former executives charged with fraud and corruption offences

Following the news that a former Business Unit Director of Innospec Ltd, David Turner, appeared before Westminster Magistrates' Court on Tuesday, charged with conspiring to make corrupt payments to public officials in Indonesia and Iraq, the Serious Fraud Office ("SFO") announced yesterday that two further Innospec executives have now been charged with associated corruption offences.… Continue Reading
Enforcement and Prosecution Policy and Trends

Identifying and Resolving Fraud and Corruption Cases in the US and the UK: PART IV (Deferred and Non-Prosecution Agreements)

In order to entice corporates to voluntarily disclose instances of fraud and corruption, meaningfully cooperate with government investigations, and/or undertake remedial measures, the US Department of Justice and Securities and Exchange Commission will, in appropriate circumstances, enter into Deferred Prosecution Agreements (DPAs) and Non-Prosecution Agreements (NPAs) with corporations.… Continue Reading
Anti-Bribery and Corruption, Compliance, Enforcement and Prosecution Policy and Trends

Identifying and Resolving Fraud and Corruption Cases in the US and the UK: PART III (Rewards for Whistleblowers)

In our last blog, we addressed the importance - and benefits - of voluntarily disclosing instances of fraud or corruption to appropriate US and/or UK regulators. Of course, corporates do not always have the opportunity to identify and voluntarily disclose instances of fraud or corruption before an enterprising insider blows the whistle on some potential violation.… Continue Reading
Anti-Bribery and Corruption, Compliance, Enforcement and Prosecution Policy and Trends

Identifying and Resolving Fraud and Corruption Cases in the US and the UK: PART II (Self Reporting )

The SEC and DOJ have long encouraged corporates to voluntarily disclose possible violations of the law. And both the SEC and DOJ offer lesser sanctions - even amnesty in certain cases - for corporates that timely self report suspected violations. Both the DOJ and the SEC stress that the key to receiving credit for self reporting is promptness. Corporates are expected to timely report potential violations identified through internal reporting or compliance programs or an internal investigation.… Continue Reading

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