Our guests come from all walks of life with a wide range of skills and experience.
Owner, Sherron Watkins and Company
In our first episode of Fraud Eats Strategy with Scott Moritz, we speak to former Enron Whistleblower Sherron Watkins about the red flags that were ignored, ill-fated board decisions and the wide-ranging complicity that led to the collapse of Enron. Sherron’s memo to former Enron leadership warned of the accounting irregularities that eventually caused the company to “implode in a wave of accounting scandals” and sparked what is now one of the biggest fraud and misconduct cases in American history.
Partner, Jenner & Block
In this episode Scott Moritz speaks to Neil Barofsky, a partner at Jenner & Block and the former Special Inspector General of the Troubled Asset Relief Program about issues of the increased discovery of financial crimes. We spoke about some issues that can occur in a down-cycle of the economy and how organizations can use fraud risk assessments to identify fraud, pursue avenues of recovery and strengthen their organizations against the potential negative consequences of fraud.
Michael Bret Hood
Founding Partner of 21st Century Learning & Consulting, LLC
Scott and Bret discuss the topic of remote witness interviews and how to make the best of a bad situation using time-tested interrogation techniques and other methods. While things are starting to return to something resembling normal our use of video conferencing as a business tool is here to stay. I’ve been fielding a lot of questions about use of body language and other techniques to try to limit a witness or deponent’s ability to be coached or misdirect the interviewer. Michael Bret Hood is a subject matter expert on interviewing and interrogation skills. Bret is the Founding Partner of 21st Century Learning & Consulting, LLC where he teaches leadership skills. He is also an adjunct professor of Corporate Governance and Ethics at University of Virginia.
Carrie Penman & Kyle Welch
CCO NAVEX | GWU Professor
Two subject matter experts on confidential reporting, Carrie Penman, Chief Compliance Officer of NAVEX Global, a widely noted compliance luminary and Kyle Welch, Assistant Professor, George Washington University’s School of Business. Carrie and Kyle have collaborated on several studies on how to measure one of the more challenging aspects of regulatory compliance – return on investment. This podcast episode and blog post delve into what you can do to help your measurements, the return on investment of compliance hotlines and important elements of an effective compliance program including confidential reporting and investigations.
Partner & Co-Leader, Morrison Foerster
This episode explores the importance of seeing your compliance program through the government’s eyes. The DOJ Fraud Section recently released its latest update to their guidance on evaluation of corporate compliance programs. While it does not represent a major rewrite, it did provide further clarity on the government’s expectations on post-merger integration, continuous program improvement and compliance’s access to relevant data sources needed to drive the program.
CEO & President, Association of Certified Fraud Examiners
This may be exactly the right time to perform a meaningful fraud risk assessment. Fraud risks are like potential explosions. The vulnerability of fraud can lay dormant for years until and unless someone in a position to exploit the control weakness, formulates a rationalization and is off and running. Joining us today is Bruce Dorris, CEO and President of the Association of Certified Fraud Examiners. The ACFE is a member organization of over 85,000 Certified Fraud Examiners and the world’s largest anti-fraud organization. The ACFE is also a standard setter for anti-fraud and investigative leading industry practices having created many important publications including the Report to the Nations, the Occupational Fraud and Abuse Classification System and the Fraud Risk Management Guide.
Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates
In this episode we going explore “bullet-proofing” your FCPA acquisition due diligence, merger integration and the government’s recent revisions to the FCPA Resource Guide and Evaluation of Corporate Compliance Programs guidance. Gone are the days when the potential bribery and corruption risk of an acquisition can afford to be something assessed at the 11th hour or not at all. Successor liability stemming from undiscovered bribery activity can give rise to devastating financial consequences. Joining me today is Skadden Arps partner and FCPA luminary Gary DiBianco. Gary’s practice focuses on advising senior management and boards of directors faced with complex government or internal investigations.
Chief Ethics & Compliance Officer | Senior Legal Counselor | Global Business Executive
Analyzing the uncomfortable and sometimes terrifying situation when a compliance officer must critique a member of leadership team and living to tell about it. In recent years, the expression “tone at the top” has been displaced by “conduct at the top” ushering in a new era of leadership accountability and transparency by the DOJ and other enforcement agencies in the U.S. and overseas. As a practical matter, compliance officers must on occasion investigate or critique members of the leadership team when conducting an internal investigation or assessing the ethics and compliance program. Joining me today is Matt Tanzer. For 13 years, Matt held various positions at Tyco including Chief Compliance & Ethics Officer. A position he also held after Tyco was merged into Johnson Controls.
Howard Kramer & Ozgur Vural
Partner, Murphy & McGonigle | Managing Director, FTI Consulting
The rapidly expanding use of artificial intelligence, machine learning and robotic process automation to undertake trade surveillance and mitigate fraud. Joining me today are two experts on the subject of Artificial intelligence from both the technical and legal and compliance perspectives.
Nicolas Bourtin & Eugene Soltes
Managing Partner of Sullivan & Cromwell | Professor of Business Administration, Harvard Business School
This week we delve into the psychology of white-collar criminals. White-criminal criminals are often treated differently than other categories of criminals which provokes a response unlike other crimes. White-collar criminals are not better than or more deserving of leniency than other categories of criminal, it’s just that they are wired differently and understanding that fact can better position us to help safeguard organizations from the types of crimes that white-collar criminals commit. Joining Scott on today’s episode are two experts on the subject of white-collar crime psychology, Nicolas Bourtin and Eugene Soltes.
Baruch Weiss & Eric Rudolph
Partner Arnold & Porter | Senior Director FTI Consulting
Joining us are two experts on the subject of U.S. Trade and Economic Sanctions, Arnold & Porter Partner Baruch Weiss and co-host Eric Rudolph of FTI Consulting. Today’s topic: The Office of Foreign Assets Control (OFAC) sanctions and other areas of sanctions compliance, and facing the inherent challenges of operating a company in compliance with U.S. and international sanctions when the lists of sanctioned parties are a moving target.
CEO of Front-Line Anti-Bribery LLC
In this episode, we discuss why we need compliance officers now more than ever. The workforce that emerges from the combination of stay at home orders and the financial crisis will be very different than ever before. Each of us is dealing with unprecedented levels of stress, anxiety, and uncertainty. These external stressors can cause people in positions of trust to suspend good judgment. They can put themselves and their organizations at risk in the process. Decision-making under stress and unreasonable times pressure can be a perfect storm during which business ethics may be given short shrift. Joining us today is Richard Bistrong. Richard is the CEO of Front-Line Anti-Bribery LLC through which he conducts corporate workshops and keynotes to sales teams, leadership groups (including boards and c-suite executives), and compliance teams (including internal audit, finance, and HR).
Partner, Kobre & Kim
This week’s episode, we examine the often opaque, secretive world of fine art and how billions of dollars, a lot of which is from unknown origins, leads to the sales of fine art. Joining us to talk about this subject is Kobre & Kim partner Rob Rathmell. Rob specializes in providing offensive, counter-offensive, and defensive strategies for high-net-worth individuals and institutions in international litigation involving allegations of fraud, money laundering, sanctions violations, and other forms of misconduct.
Lisa Vicens & Mark Grover
Partner, Cleary Gottlieb | Senior Managing Director, FTI Consulting
In this episode, we’re going to explore the little-known area of “shadow investigations” in which accounting firms oversee internal investigations being performed by outside counsel and their forensic investigations counterparts in an effort to ensure the investigation is scoped appropriately such that it will provide sufficient information for the audit partner to comfortably sign off on the auditee’s financial statements.
Robert “Bob” Appleton
Partner, Olshan Frome Wolosky LLP
In this episode we look inside the United Nations and its various agencies. We assess the harsh reality of endemic corruption in how governments intersect with UN agencies. Given its unique mission, the nature of how it is funded and disbursed funds largely for things such as large-scale infrastructure building, healthcare, education and peace-keeping, and the fact that its employees and officers are foreign officials under the law, the UN represents a perfect storm of corruption risk. Scott Moritz speaks to Murphy & McGonigle law partner Robert “Bob” Appleton. Bob was Chief of the first ever UN Anti-Corruption Unit, the Procurement Fraud Task Force, which existed between 2006-2010, and was responsible in part for the focus of the FCPA by the Fraud Section at DOJ.
Partner, Gibson Dunn
In this episode we examine pump and dump schemes in which thinly traded penny stocks are held by unscrupulous broker dealers through nominees who push the stock on unsophisticated investors, drive up the share prices and then sell their shares at inflated prices causing the stock value to drop significantly. The term pump and dump is not widely known outside of securities enforcement but the names of the practitioners are more familiar. Stratton Oakmont’s Jordan Belfort (of Wolf of Wall Street fame), Benjamin Conde, Power Traders Press, Rooney Pace, A.R. Baron and the granddaddy of them all, Bob Brennan of First Jersey Securities, introduced the world to stock boiler rooms which have continued to be a blight on the securities industry.
Allen Love, Alexandra “Alex” Sagaro & Andrew Rosini
Executive Vice President, TD Bank | Director for Enterprise Fraud Risk Management, Raymond James | Senior Managing Director, FTI Consulting
Most financial services companies above a certain size have one or more Financial Investigations Units (FIUs) and Special Investigations Units (SIUs) to investigate various threats against the institution and/or its customers. The missions vary from those that narrowly focus on risks such as card fraud and elder financial fraud, to those focused broadly on both insider and external threats against the institution and its customers. While BSA/AML and sanctions units command a great deal of regulatory attention, FIUs have the same SAR filing obligations as their AML and sanctions counterparts.
Fernanda Beraldi & Yulia Maksimenko
Senior Director, Cummins, Inc. | Managing Director, FTI Consulting
In this episode, we discuss how global organizations are a microcosm of the countries and cultures in which they operate. Understanding the customs, languages, business practices and cultural norms is an essential part of conducting effective investigations when operating outside of the U.S. In many parts of the world, business practices and cultural norms tacitly endorse bribery, corruption, and other financial and property crimes. Companies are expected to operate within the law in each country in which they operate and to follow the standards and practices delineated in the organization’s code of conduct and corporate compliance program. Compliance programs are expected to have certain program elements including mechanisms for confidential reporting of suspected wrongdoing and an efficient, reliable, and properly funded process for investigating the allegation and documenting the company’s response, including any disciplinary or remediation measures taken.
Adjunct Professor, Fordham Gabelli School of Business
In 1998, very early in my post-FBI consulting career, I was a part of a team of investigators and forensic accountants brought into BankBoston’s private banking office headquartered in New York. At the time we were retained, it was not immediately apparent that any crime had been committed. By the end of the day, the bank was no longer looking at this as a record-keeping irregularity. –Scott Moritz
Karen Albert, Stephen Davis & Jordan Rae Kelly
Chief Audit Executive, WR Grace | Chief Information Security Officer, WR Grace | Senior Managing Director, FTI Consulting
Cybersecurity is at the top of most organizations’ list of critical risks and is often cited by C-suite executives and Board Members as their gravest concern. Threats that are this complex and amorphous require strong partnerships including the inside of the organization. At first glance, cybersecurity and internal audit would seem to have very little in common or little need to interact with one another. Indeed, that is probably still the case in many organizations. Our guests today however have taken a different approach.
Partner, Gibson, Dunn and Crutcher
In this 2-part series, we’re going to discuss the Anti-Money Laundering Act of 2020 (AMLA 2020). This is the most comprehensive set of reforms to U.S. anti-money laundering (“AML”) laws since the passage of the USA PATRIOT Act in 2001. While there is a lot to the Act, there are some important changes and enhancements that should have an immediate and long-lasting impact on anti-money laundering.
Rachel Rosenblatt & Patrick Fitzgerald
Senior Managing Director, FTI Consulting | Partner, Skadden
In this episode, we’re going to talk about the inter-relationship between major investigations and crisis communications. So much of crisis management planning and crisis communications is about thinking through various scenarios that could play out and then formulating a game plan for each.
Partner, White & Case | Research Fellow, Centre for Financial Crime and Security Studies
In this episode, we discuss trade-based money laundering. According to the intergovernmental money laundering and terrorist financing watchdog the Financial Action Task Force (FATF), there are three primary methods that transnational criminal and terrorist organizations utilize to launder the proceeds of illicit activity and use illicit proceeds to finance terrorist operations. 1. Through the use of the financial system; 2. Physical movement of hard currency by use of couriers and smuggling techniques and; 3. Through the physical movement of commercial and consumer goods in international trade.
Kara Brockmeyer & Peter Solmssen
Partner, Debevoise & Plimpton | Lawyer & Farmer, Abiquiu Valley Farm LLC
In 2006, Germany-based Siemens was ranked 22nd on the Global Fortune 500 with revenues of $100 billion. It was a global leader and one of the world’s most admired companies. Until November 16, 2006 when the Munich Police Department raided Siemens corporate offices and several subsidiaries based on whistleblower allegations of bribery and misuse of funds. This Munich Police Department investigation triggered a global corruption investigation which revealed that Siemens had methodically violated U.S., German and other global anti-bribery laws for decades. When the settlement of the case was announced in 2008, law enforcement didn’t pull any punches. Yet what is equally remarkable is that a company that used corruption strategically and methodically to achieve its business objectives for decades remade itself in the wake of the corruption scandal to emerge as a model of corporate reform and business ethics.
Co-Practice Leader and founder of the firm’s Anti-Money Laundering Team, Ballard Spahr
Since the Panama Papers leak, a total of 81 jurisdictions worldwide have passed laws requiring beneficial ownership to be registered with a government authority. The U.S. Government has been openly critical of countries who act as money laundering safe havens and yet we were not taking any steps toward transparency. On January 1, 2021, both houses of the United States Congress passed the National Defense Authorization Act for Fiscal Year 2021, which includes the Corporate Transparency Act (the Act). The Act requires a report be filed with the Financial Crimes Enforcement Network (FinCEN) that identifies each beneficial owner of an applicant forming a reporting company.
Seanna R. Brown
Arguably there is no more major a case in modern history than the Ponzi Scheme perpetrated against thousands of victims for more than three decades by the notorious Bernie Madoff. To date, the Trustee for the liquidation, Irving Picard, and counsel to the Trustee, BakerHostetler, have recovered a combined total $14.402 billion in settlements and recoveries and distributed $13.320 billion to victims. This recovery amounts to 75 cents on the dollar of the approximately $20 billion of principal that was lost in the Madoff Ponzi scheme in total.
Partner, Foley & Lardner LLP
Since the Panama Papers leak, a total of 81 jurisdictions worldwide have passed laws requiring beneficial ownership to be registered with a government authority. Rarely do we hear or read about the names of third-party bribe payers or the names of their companies. Global companies, particularly those who ship products internationally or rely on third-parties in other ways to bring their products and services to market, are heavily reliant on virtual armies of third-party intermediaries to operate internationally. They are a necessary evil who can act on an organization’s behalf, represent them in the marketplace and potentially trigger significant liability under the FCPA, sanctions or anti-money laundering laws.
Partner, Arnold & Porter
The passage of Dodd-Frank represented a major overhaul of U.S. financial regulations. Among the Act’s most notable achievements were the creation of the U.S. Securities and Exchange Commission (“SEC”) Office of the Whistleblower and the SEC Whistleblower Program. In its short, 10-year history, the SEC Whistleblower Reward Program has been extraordinarily successful in enabling the SEC to root out securities fraud and protect investors. Since the inception of the SEC Whistleblower Program, the SEC has paid more than $900 million in awards to whistleblowers resulting in more than $3.5 billion in financial remedies. According to the SEC Whistleblower Program’s 2020 Annual Report, the SEC is tracking over 1,100 matters in which a whistleblower’s tip has caused a Matter Under Inquiry or investigation to open.