May 12, 2021

How Three Companies Embarked on AI Compliance Journeys

Even with a firm grasp of what artificial intelligence (AI) is and how it can be used to build anti‑corruption compliance tools, the process is still intimidating. Every company’s needs are different and building an AI solution will likely involve roadblocks, challenges, trial and error. While researching our series on AI solutions for anti‑corruption efforts, we spoke with experts at AB InBev, Microsoft and Google about how their companies approached building tools using machine learning (ML). Here we walk through the individualized process for each company and offer practical advice for getting a project off the ground. See our three-part series on artificial intelligence for anti-corruption compliance:  “Foundations” (Oct. 28, 2020); “Building a Model” (Dec. 2, 2020); and “Five Workarounds for Asymmetric Data Sets” (Feb. 3, 2021).

Lessons on Compliant Speaker Programs From the OIG’s Life Sciences Fraud Alert

Speaker programs can be opportunities – or cover – for illegal payments to health care providers, recent FCPA settlements have shown. The November 2020 Special Fraud Alert issued by the Office of the Inspector General of the Department of Health and Human Services focuses on fraud and abuse risks associated with speaker programs sponsored by life sciences companies, which may include violation of domestic anti-kickback laws and, when foreign officials are involved, the FCPA. We analyze the Alert and provide tips for designing compliant speaker programs with input from government officials and private practitioners. See “Novartis and Subsidiaries Settle FCPA Cases for $346M, Avoiding a Monitor Despite Recidivism” (Jul. 8, 2020).

Will Your Insurance Provide Coverage for Search Warrants or Subpoenas?

The term “search warrant” often conjures clichéd images of law enforcement officers arriving unannounced at an office or residence in hope of finding incriminating evidence. Search warrants and other governmental investigative tools, however, can differ greatly in scope, are used in a wide variety of contexts, and can impose onerous obligations on the responding party. They can also be very costly if not covered by insurance. In a guest article, Andrew M. Reidy and Christopher Schafbuch, attorneys at Lowenstein Sandler, examine the diverse sources of subpoena power, suggest the best ways to respond to different types of subpoenas and provide six tips for ensuring that responding to government investigatory requests is covered by insurance. See “Five Questions to Ask to Maximize D&O Insurance Coverage of FCPA Claims” (Jun. 21, 2017).

Chief of SEC’s Whistleblower Office Discusses Program’s Continuing Success After Its First Decade

The SEC’s whistleblower program has grown substantially over the past decade, with a record number of tips and awards in fiscal year 2020. At a recent SCCE event, Jane Norberg, Chief of the Office of the Whistleblower, who has been with the office since its inception, and Nikkia M. Wharton, senior counsel in the SEC Division of Enforcement, discusses the program, how firms can use internal reporting to mitigate whistleblower risk and the critical anti-retaliation protections afforded to whistleblowers. See “Encouraging Internal Reporting to Mitigate COVID-19-Related Risk” (Jul. 22, 2020).

First 100 Days As GC/CCO: Preparing for the Role and Setting the Tone

As with U.S. presidents, the 100‑day mark provides a useful target date for new GC/CCOs to fulfill certain key objectives, including setting the tone for legal and compliance going forward. This first article in a three-part series offers advice for starting the GC/CCO role on the right foot, including how to prepare before day one and the best way to approach the first 100 days. The second installment will explore how new GC/CCOs can accomplish two crucial goals in the first 100 days – gathering knowledge about the firm and building the foundation for solid relationships with key people. The third article will discuss how new GC/CCOs can balance their day-to-day work with settling into the organization, as well as how to advocate for improvements. See “How CCOs Can Avoid Personal Liability for an Organization’s Compliance Failures” (Jan. 6, 2021

DOJ FCPA Unit Chief Heads to WilmerHale

Christopher Cestaro joins the firm’s white collar practice and will be based in Washington, D.C. For more from Cestaro, see our three-part series on 2020 in review: “Big FCPA Numbers Despite a Pandemic” (Dec. 16, 2020); “More Coordination, Fewer Monitors” (Jan. 6, 2021); and “Data- and Culture-Driven Compliance” (Jan. 21, 2021). 

Bethany Hengsbach Joins Affiliated Monitors

Previously a partner at Sheppard Mullin, she will serve as the company’s managing director of global corporate compliance. For more from Affiliated Monitors, see “LBI and Its Monitor Discuss Getting the Most Out of a Monitorship” (Aug. 2, 2017). 

Two Former Prosecutors Join Norton Rose Fulbright in Texas

Jay Dewald and Julie Searle have joined the firm’s regulations, investigations, securities and compliance practice as partners. Dewald joins from Jackson Walker and Searle from Walmart. For more from Norton Rose Fulbright, see “CEO of LAN Airlines Settles FCPA Charges With SEC Over Union Dispute” (Feb. 10, 2016).