New Tax Bill Will Rewrite Rules for Deducting Disgorgement Payments to SEC
The recently-signed tax reform bill creates new rules for deducting fines, penalties, and other amounts, including disgorgement, paid to the Securities and Exchange Commission. Previously, disgorgement were considered outside the scope of IRS regulations prohibiting businesses from deducting any fine or similar penalty paid to a government for the violation of any law. However, under the […]
Day 19 of 31 Days to a More Effective Compliance Program – The Investigation...
In Day 19 of his podcast series on creating more effective compliance programs, Tom Fox emphasizes the importance of having an effective, well-documented investigation process in place before any alleged misconduct is reported. “With the advent of the SEC Whistleblower Program, courtesy of Dodd-Frank, it is imperative that a company quickly and efficiently investigate all […]
Relator’s Request for Business Case a Strange Way of Showing Concern About Physician Speaker...
The district court granted the defendant’s motion to dismiss a complaint alleging unlawful employment retaliation under the FCA. The relator alleged that he was...
Fallout from PdVSA Corruption Continues
Following the guilty plea of Cesar David Rincon Godoy in the Petróleos de Venezuela, S.A. (PdDVSA) corruption scandal, Tom Fox of FCPA Compliance Report writes about two additional claimants. Houston-based Harvest Natural Resources, an oil and gas producer, alleged it lost $470 million and went out of business because it refused to pay $40 million […]
The Foreign Extortion Prevention Act: Broadening the Scope of Bribery Prosecutions?
A bill introduced in the House of Representatives in late July would allow the United States to prosecute foreign officials who take bribes. The “Foreign Extortion Prevention Act” (“FEPA”), introduced by two Democratic and two Republican members of Congress, would make it illegal for a “foreign official” to improperly demand or receive anything of value […]
NAVEX Global Releases 2018 Third-Party Risk Benchmark Report
NAVEX Global has issued its Third-Party Risk Management Benchmark Report for 2018, which Michael Volkov assisted in preparing. “Knowing how to appropriately define, screen and monitor your third parties is essential to minimizing risk,” Volkov notes. “New industry benchmarks, along with the expert guidance provided in this report, will help set up your third-party risk […]
Managing Supply Chain Risks
Global companies face significant challenges in managing their supply chain risks. Most companies incorporate a holistic supply chain risk process as part of their enterprise risk management systems. Legal risks, while not the most significant risk, is one aspect of these risks, especially in the aggressive enforcement of anti-bribery, sanctions, anti-money laundering and speciality laws […]
Federal Court Upholds CMS’ Use of Extrapolation to Claw-Back Improper Payments
A recent federal court decision should serve as an important reminder to providers that the Centers for Medicare and Medicaid Services (“CMS”) and its...
Avoiding “Contextual Compliance” in the Year of COVID and Beyond
Despite 2020 being an unprecedented and challenging year for business, the government has not slowed down its record-breaking enforcement actions. In late October, the U.S. Department of Justice (DOJ) and Securities and Exchange Commission (SEC) announced a $3.3 billion settlement with banking giant Goldman Sachs for violations of the Foreign Corrupt Practices Act (FCPA) — […]
The False Claims Act in 2020: A Government Enforcement Update
The False Claims Act continued to serve as one of the primary tools utilized by the federal government against government contractors in 2020. One...