Compliance Bits and Pieces for March 4

Here are some recent compliance-related stories that caught my attention. But not enough attention to anything with them other post a snippet of the story.

Board Member of Goldman Sachs and Procter & Gamble Charged in Insider Trading Scheme

The Securities and Exchange Commission today announced insider trading charges against a Westport, Conn.-based business consultant who has served on the boards of directors at Goldman Sachs and Procter & Gamble for illegally tipping Galleon Management founder and hedge fund manager Raj Rajaratnam with inside information about the quarterly earnings at both firms as well as an impending $5 billion investment by Berkshire Hathaway in Goldman.

Executive Compensation, a Divided Commission, and the Consequences of Dissent (Part 2) by J. Robert Brown Jr. in The Race to the Bottom

[T]he dissent is liberating. The staff know that, by voting against the proposal, the two commissioners will likewise vote against the final rule when it is proposed, assuming the substantive requirements remain in place. That means that the rule can be written without worrying about the views of the dissenting commissioners.

Ponzi Operater Rides Phony Pedigree to Profits in Investor’s Watchdog

Sometimes, as alleged in this case, the claimed credentials are phony. Vigilant investors investigate to find that out. Sometimes, though, the scamster actually graduated from an Ivy League school. What do Marc Dreier, Kirk Wright, and Alicia Eimicke have in common? Two things. All of them ran investment frauds, and all of them graduated from Harvard. I don’t mean to pick on Harvard. There are plenty of Yale and Princeton grads who’ve also run Ponzi schemes. The point is that, while a degree from an impressive university might say something about a person’s intelligence and work ethic, it says nothing about his or her character, per se. And character is what a vigilant investor is looking for.

Chancery Declines to Dissolve LP and Declines to Appoint Receiver of Failing Investment Fund by Francis G.X. Pileggi in Delaware Corporate and Commercial Litigation Blog
The limited partner of a limited partnership sought to force a dissolution of the LP that had invested most of its assets in an investment fund based in the Cayman Islands.

What are the differences in the FCPA and Bribery Act? by Tom Fox

With the recent information coming out, largely from reports by the UK Telegraph, we thought it might a propitious time to review the differences in the Bribery Act and the Foreign Corrupt Practices Act (FCPA) so that US companies might begin to plan to acclimate their FCPA based compliance program to one which includes concepts found in the Bribery Act, if such action is appropriate.

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