The FCPA — More Prosecutions Than Ever

The National Law Journal, in an article by attorneys William V. Roppolo and Marcus R. Cohen, reports that there have been more FCPA prosecutions concluded in the last 4 years than in the previous 28.  Prosecutors are able to put cases together when businesses ignore red flags.  What are red flags?  Well, when Fortune magazine refers to your consultant in the country in which you are doing business as “The Pirate of Prague,” you have crossed into red-flag territory.  So, keep up on your web searches on your consultants.  In addition:

  • Question UNUSUALLY high fees to those consultants
  • Commissions are tricky elements under FCPA, especially UNUSUALLY high commissions
  • ODD methods of payments i.e., weaving your way through bank accounts, deposits, third parties
  • KNOW the country — go to Transparency International and check out the country’s corruption index.  If the country is near Equatorial Guinea on the corruption list (not encessarily geographically), pay close attention or even consider this, “Is it worth it to do business in this country?”
  • An agent with no records
  • An agent who says, “You don’t need a FCPA certification.”
  • Don’t distance yourself from foreign operations; it doesn’t work anyway.  You are deemed to know. 
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“We are also dealing with a whistle-blower letter, that is on its face pretty ugly.”

William Schlich, former lead partner on Ernst & Young Lehman team. June 5, 2008.  In July, 2008, the E&Y team told Lehman’s audit committee that the allegations were unfounded and immaterial. Lehman would file for bankruptcy on September 15, 2008.

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The Congressman Who Walked Out

Those who do public speaking are always unnerved when somone in the audience gets up and walks out whilst you are offering your thoughts.  Sometimes the rebel simply needs a restroom.  Sometimes the rebel has a ringing cell phone.  But, this January, the Barometer was speaking to a group that included a member of Congress.  He lasted about five minutes in a speech on ethics.  He just left — returning only in time for the next speaker. That congressman has emerged in the news as a beneficiary of a deal for his state. Continue reading

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By Request — Thoughts on Health Care

The Barometer feels like a Top-40 DJ.  By popular request, thoughts on the whirling, swirling, and twirling in Washington, DC.  First, the obvious.  Reasonable minds can differ on what to do about health care.  Second, don’t fret about the level of disagreement, citizen involvement, or desperate moves.  Know thy history. Realize representative democracy has always had its moments of passionate disagreement.  However, citizens will respect the winner of a tough battle only if the process is clean.  But, if the process is tainted . . . Continue reading

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“I tickled him until he couldn’t breathe . . . It was my 50th birthday.”

Former Congressman Eric Massa’s explanation for behavior that was the subject of an aide’s complaint.  Isn’t this what most of us do on our 50th birthdays?

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Those Nine Lawyers at the Justice Department: On Constancy in the Noble Role of Counsel

What do John Yoo, Jay Bybee, and Ira Sorkin have in common?  The obvious answer is that they are all lawyers.  Another answer is that they have been all over the news.  One more layer is that they have been vilified because they represented widely unpopular clients. Mr. Yoo and Mr. Bybee offered the legal opinions on interrogation techniques during their years in the Justice Department. Mr. Sorkin represented Bernie Madoff.  Now, name just one of the lawyers currently serving in the Justice Department who has, in the past, represented clients housed in Gitmo.  You can’t, right?  In fact, we had a little trouble getting at the names of seven of them because their boss, Attorney General Holder, stood sullen and mute on requests for disclosure. Therein lies the real issue in the heated debated over these lawyers and their former pro bono work for Gitmo detainees.  The Barometer stands firm on the noble role of counsel for ALL clients.  The Barometer asks only that the nobility label apply to all counsel, regardless of the political ideology and/or conduct of their clients. Continue reading

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“The Seven Signs” — Sign #1 Proven Once Again By New Study

A forthcoming article in the Academy of Management Journal presents research that supports what “Seven Signs” readers have known since 2006: High-performing companies are more likely to break the law.  As readers of ‘Seven Signs” also know, pressure (P=f(x)), hubris, the inability to accept a setback, and the failure to remember “it ain’t your money” are the reasons managers at high-performing companies go ethically nutso. Continue reading

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Courts should ordinarily greet a claim that several lawyers were required to perform a single set of tasks with healthy skepticism, for purposes of an award of attorney fees.

Diffenderfer v. Gomez-Colon, 606 F. Supp. 2d 222 (D.P.R. 2009)

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But it’s really cool “stuff” this time!

The Barometer always gets questions that begin this way, “I have a friend. . “  Psychiatry and ethics have  identity transfers in common.  So, another story begins . . . A good friend of mine works for a local company that deals with a number of vendors.  This company does approximately $100m in revenue per year.  The company has no formal ethics policy regarding gifts.  In fact, the unofficial policy is “get what you can.” Continue reading

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No-Drama Derek; Just Results

He gets there on time. He plays. He hits. Derek Jeter broke Lou Gehrig’s record for hits in October 2009. The Barometer was reminded of this little-noted event because in the year of the Tiger and McGwire admissions there was some missed magic Continue reading

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“Man, I like crazy; I would love crazy. Our forefathers in their infinite wisdom planned for crazy. But this week we moved to insane.”

 New York assemblyman on a week in New York politics that found its governor moving from unelectable to investigated to even-Rangel-looks-good status.

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Patients Swiping from Hospitals

Hospital swiping: 64% of hospital patients and family members take towels, linens, and pillows from patient rooms. Now, one-third of the patients in hospitals are not paying for their stays there, so a hospital stay is actually a revenue-producing event for one-third of hospital patients in the United States. Perhaps “thou shalt not steal” applied to patients is a partial answer to the “how to pay for health care” query.

VHA Inc., survey of 100 hospital supply executives, March 2010

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How the Mighty Art Fallen

David Letterman had his share of intern jokes during the Clinton years.  What goes around comes around.

Mr. Letterman has had a continuing line of Palin family jokes, one of which warranted picketing.  God don’t like ugly.

Glass houses and all.  The Barometer has no more pearls on this one.  Mr. Letterman needs a moral compass.

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“When I build something for somebody, I always add $50 million or $60 million onto the price. My guys come in, they say it’s going to cost $75 million. I say it’s going to cost $125 million and I build it for $100 million. Basically, I did a lousy job. But they think I did a great job.”

Donald Trump.

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