Compliance Bricks and Mortar for July 14

When this post gets published, I will have hopefully finished a 130 mile training ride across Massachusetts in preparation for the Pan Mass Challenge. I’m leaving my house in the middle of the night to be in Becket, MA by noon for parents’ weekend at my son’s summer camp. There is still time to support my Pan-Mass Challenge ride to fight cancer. 100% of your donation goes to the Dana Farber Cancer Institute.

These are some of the compliance-related stories that recently caught my attention.


Tone at Top Gone Wrong: The Christie Example by Matt Kelly in Radical Compliance

Nothing says “America!” these days like righteous indignation at a fellow American doing something we don’t like. So as we return from our Fourth of July holiday, let’s all give thanks to one American who cultivates that spirit and gives chief compliance officers a great example to cite next time you’re talking with the CEO about tone at the top.

Chris Christie, governor of New Jersey and beachgoer extraordinaire, thank you. Compliance officers owe you a debt of gratitude for your shameless, ridiculous, preposterous tone at the top. [More..]


Justice Department ethics watchdog quits because Trump made her feel like a hypocrite by Francine McKenna in Marketwatch

Hui Chen, the first-ever compliance counsel to the U.S. Department of Justice criminal division’s fraud section, is mad as hell and has decided she is not going to take it any more.

Chen announced via LinkedIn last week that she was leaving her role consulting to the department’s prosecutors on cases involving corporate ethics and compliance crimes. In her post entitled “Mission Matters,” Chen said that she felt like a hypocrite as she sat with companies accused of ethics and compliance violations. [More…]


Shkreli’s Ex-Compliance Officer Says He Quit Over Dodgy Deals by Patricia Hurtado in Bloomberg

Jackson Su worked for Shkreli from January 2012 until December of that year and told a jury at Shkreli’s fraud trial in Brooklyn, New York, that he got so fed up watching his boss execute questionable and unethical transactions that he quit and complained to the U.S. Securities and Exchange Commission. [More…]


Conflicts and Capital Allocation by Benjamin Edwards in the CLS Blue Sky Blog

In the aggregate, retail investors allocate tremendous amounts of capital and often turn to financial advisers to help them pick the best investment opportunities. In a recently published article, I describe how financial adviser conflicts of interest now distort overall capital allocation by driving capital to investment opportunities that reward financial advisers—altering the flow of capital. [More…]


Team Kinetic Karma with its Pedal Partner, Maya, and her family: