Feb. 6, 2019

Lonza’s GC for Global Ethics and Compliance Discusses Enhancing a Compliance Program Post-Acquisition

When Lonza, a Swiss life sciences company, acquired Capsugel, a New Jersey-based contract development and manufacturing organization, in 2017, the organization was faced with a common dilemma: how to merge two cultures and create an innovative compliance program that worked for both. Stacey Hanna, who was then serving as Capsugel’s associate general counsel and senior director of global compliance, stepped into the role of general counsel for global ethics and compliance for all of Lonza and took charge of enhancing the company’s compliance program. The Anti-Corruption Report spoke with Hanna about how she approached designing and implementing a program that met the needs of a growing company. See the Anti-Corruption Report’s three-part series on managing M&A anti-corruption risk: “Pre-Deal Prep” (Oct. 3, 2018); “Pre-Closing Risk Assessments and Due Diligence” (Oct. 17, 2018); and “Deal Terms and Integration” (Oct. 31, 2018).

When Is an Individual “Substantially” Involved in a Crime?

At the end of 2018, Deputy Attorney General Rod Rosenstein announced changes to the DOJ’s policy on prosecuting individuals in corporate cases. As discussed in our first article about the revisions, the changes are generally small and represent a preservation of the majority of the policy as originally encompassed in the Yates Memo. However, one tweak to the language could impact how companies get cooperation credit in anti-corruption investigations. We spoke with former DOJ prosecutors about the implications of this change in the language. See “Changes to Justice Manual on Individual Prosecutions Moderate but Preserve the Yates Memo” (Jan. 23, 2019).

Behavioral Science Lessons From the Wells Fargo Scandal: Focusing on the “Regular Apples” (Part Three of Three)

The Wells Fargo scandal demonstrates that although a few bad apples in an organization can be problematic, systemic corporate compliance and ethics failures are largely a result of the conditions of the barrel, not the apples inside. In this final article in a three-part series, Forensic Risk Alliance’s Matthew Bedan discusses several tools companies can use to make sure that they are creating an environment for their “regular apples” that fosters compliance and discourages unethical behavior. See previous articles in the series: “Culture Eats Compliance for Lunch” (Nov. 28, 2018); “Devil in the Decentralization” (Dec. 12, 2018).

Analyzing Early GDPR Enforcement: Portugal and Germany

The first major case under the GDPR has arrived in the form of a French enforcement action against Google, with a €50-million penalty for improperly disclosing to users how data is collected. It was not, however, the first Member State action since the law’s implementation in May 2018 – there have been actions in the U.K., Austria, Portugal and Germany that provide clues about how regulators will be enforcing the new law against small and mid-size companies and assessing fines, and how companies should approach privacy and security, including when they conduct cross-border investigations and perform due diligence. In this article series, we discuss recent cases with local experts, including the theft of accounts from a social media site in Germany, leading to the Data Protection Authority’s (DPA) discovery of passwords stored in plain text, as well as a hospital in Portugal that had a deficient access policy that was uncovered by a newspaper, prompting an investigation by the DPA. See “GDPR Readiness: Legal and Technological Implications for Third-Party Monitoring in the E.U. and Beyond” (Mar. 7, 2018).

How the “First Step Act” and Other Sentencing Reforms Will Impact White Collar Defendants

The recently enacted First Step Act, while not a sweeping reformation, does implement important provisions affecting sentencing and serving time, particularly for low-level and first-time offenders. By using time credits to reward participation in recidivism-reduction programs, implementing more community-based productive activities and codifying certain sentencing preferences, the Act aims to smooth incarcerated individuals’ transition back into society. In this guest article, Holland & Knight partner Vince Farhat and associates Juan Rodriguez and Samuel Stone explain why the Act represents a potentially significant development for persons convicted of white collar offenses, who tend to be non-violent offenders who are less likely to recidivate. See “Changes to Justice Manual on Individual Prosecutions Moderate but Preserve the Yates Memo” (Jan. 23, 2019).

GDPR Provides Model for Privacy and Security Laws in Latin America and Asia (Part Two of Two)

Many nations in Asia are adopting data protection and privacy laws that, while based on the GDPR, are somewhat more varied than their counterparts in Latin America, WilmerHale partner D. Reed Freeman, Jr., said during a recent WilmerHale webinar. This article, the second installment of our two-part series, covers the presentation by Freeman and his colleague Nicole Ewart on the various legislative and enforcement developments across Asia, and the activity regarding data transfer there. The first article identified security laws in both regions that have not garnered much attention and addressed new or newly amended Latin American privacy and security laws. See “How to Build Culture Using People, Processes and Technology” (Oct. 31, 2018).

Kroll’s Business Intelligence and Investigations Practice Gains Two Managing Directors

Terry Orr joins from Grant Thornton and will be based in Dallas. Michael Schwartz, a former Assistant U.S. Attorney, joins from Control Risks, where he was a principal in the compliance, forensics and intelligence practice. He will be based in Houston. For more from Kroll, see “Kroll/Ethisphere Report Highlights Concerns About Reputational Risk and Post-Onboarding Monitoring of Third Parties” (Apr. 12, 2017).

King & Spalding’s Special Matters and Government Investigations Team Welcomes Partner in San Francisco

Michael Shepard’s practice focuses on white collar criminal defense, related civil litigation and internal corporate investigations, with an emphasis on FCPA and financial reporting. For more from King & Spalding, see “Massive Telia Settlement Indicates International Cooperation Will Continue Under New Administration” (Oct. 4, 2017).

Ice Miller Adds White Collar Partner in Washington, D.C.

A former CIA intelligence officer and a State Department diplomat, Guillermo Christensen advises clients on compliance with anti-corruption laws such as the FCPA and economic sanctions and embargoes administered by the OFAC.