Category: Compliance Bricks and Mortar

Here are some recent compliance-related stories that I found interesting:

Dodd-Frank: Too Many Regulations Too Fast? by Thomas Gorman in SEC Actions

The average annual rate of rulemaking per year prior to Dodd-Frank for the SEC was 9.5, the CFTC 5.5, the FDIC 8 and the Federal Reserve 4.5 Post Dodd-Frank the average for the SEC is 59, the CFTC 37, the FDIC 6, and the Federal Reserve 17.

U.S Claims Some of Scott Rothstein’s Choicest Trinkets; Creditors Moan

Federal forfeiture laws allowed the government to seize the proceeds of Rothstein’s $1.2 billion Ponzi scheme, and the government can do what it likes with the proceeds, keeping some—or a lot—for itself, according to WSJ, which notes that the law does not require that one cent of seized assets be set aside for Rothstein’s legitimate business creditors.

The First Amendment, the securities laws and hedge funds by Larry Ribstein in Truth on the Market

I have been writing for some time about the First Amendment and the securities laws. In a nutshell, the formerly inviolate notion that the securities laws are a First-Amendment-free zone has always been constitutionally questionable. The questions multiply with the expansion of the securities laws. The Supreme Court’s recent broad endorsement of the application of the First Amendment to corporate speech in Citizens United signals that we may finally get some answers. The bottom line is that securities regulation that burdens the publication of truthful speech is subject to the First Amendment.

Massachusetts Attorney General Reviews 2010 Data Breach and Data Security Regulations Compliance in Littler’s Workplace Privacy Counsel

With the first anniversary of the Massachusetts Data Security Regulations, 201 CMR 17 (pdf)(“Regulations”), coming in March, the International Association of Privacy Professionals (IAPP) recently hosted a panel discussion providing direct access to the Massachusetts Attorney General’s Office and the Office of Consumer Affairs and Business Regulation to discuss their investigations to date and their current approach to enforcement. Panelists included Scott Shafer, Chief of the Consumer Protection Division, Massachusetts Attorney General’s Office; Shannon Choy-Seymour, Assistant Attorney General, Consumer Protection Division, Massachusetts Attorney General’s Office; Jason Egan, Deputy General Counsel, Massachusetts Office of Consumer Affairs and Business Regulation; and Lam Nguyen, Director (Digital Forensics), Stroz Friedberg LLP.

Should Workplaces Ban Lotteries? by Chris MacDonald in The Business Ethics Blog

Lots of offices feature “pools” of various kinds, with groups of employees joining together collaboratively or competitively to speculate on, e.g., the outcome of the NFL playoffs. Very likely lots of managers regard it all as harmless fun, boosting morale by giving employees a break from the tedium of their cubicle farms. But a lottery pool is unlike, say, a hockey or football pool. In a hockey or football pool, there are winners and losers, but typically the dollar amounts are pretty small. But when employees band together to buy lottery tickets, the possibility is there for all hell to break loose.

Here are some compliance-related stories that recently caught my attention:

Additional Settlements in New York Pension Fund Investigation in the Pay to Play Blog

New York State Attorney General and Governor-Elect Andrew Cuomo has announced additional settlements in his investigation of “pay-to-play” practices and conflicts of interest at public pension funds.

FTC Gives Guidance on Securing Data on Digital Copiers by Melissa Klein Aguilar in Compliance Week

A gentle reminder from the Federal Trade Commission: Make sure your information security plan covers the digital copiers your company uses. The agency has some tips for businesses on safeguarding sensitive data, such as Social Security numbers, account numbers, or health records that may be stored on the hard drives of digital copiers, in order to prevent the risk of fraud and identity theft.

These are some compliance-related stories that recently caught my eye:

Business Ethics and the “New York Times” Rule by Chris MacDonald in The Business Ethics Blog

The first thing to say about the Newspaper Test is that it probably is a useful heuristic. Asking the question it poses at very least serves as an opportunity to pause and ask yourself whether the action you’re about to take is one that could withstand publicity and scrutiny. But there are two clear problems with the Newspaper Test….

Top Five Reasons to Have a Compliance Committee by Meghan Daniels in SAI’s Viewpoint

Many companies integrate a compliance committee into their compliance and ethics programs. Compliance committees usually comprise a cross-section of representatives across the business, who share a unique perspective or interest related to the compliance and ethics program. Compliance committees often meet on a regular schedule and participate in a wide range of discussions and activities, from official responsibilities such as preliminary policy approvals to less formal activities such as discussions about trends or communication strategies.

How does the AIFM Directive Impact Fund Raising in the EU by Non-EU Managers? by Michael Wu in Pillsbury’s Investment Fund Law Blog

Although the majority of the Directive’s rules are likely to become effective by January 2013, some of the rules affecting non-EU funds and non-EU fund managers will be deferred until 2015 or later. Thus, non-EU managers may still actively raise funds in the EU, but will have to comply with a number of additional regulatory requirements beginning in January 2013.

A Brief Rumination On Metaphysics, Trusts and Accredited Investors by Keith Paul Bishop in California Corporate & Securities Law blog

This is what I understand the Staff to be saying. When (i) the grantors of a trust are accredited under Rule 501(a)(5); and (ii) the trust may be amended or revoked at any time by the grantors, then a trust is deemed NOT TO EXIST. Then, they seem to be saying that this non-existent trust is deemed accredited. So there you have it, a non-existent trust may be deemed to be an accredited investor.

Three Great (and Free) Webcasts Next Week

• Tuesday, December 14:
  Corporate Compliance after Dodd-Frank: One Voice; How Many Masters?
• Wednesday, December 15:
  Follow the Money: Using Technology to Find Fraud or Defend Financial Investigations
• Thursday, December 16:
  F-Cubed Update: Six Months After Morrison v. NAB

Here are some recent compliance-related stories that caught my attention:

Transparency International Alleges Intimidation in Pakistan by Joe Palazzolo in WSJ.com’s Corruption Currents

Transparency International says its branch in Pakistan has received death threats from government officials, in connection with the anti-corruption organization’s agreement with the U.S. to monitor aid flows to the country. Syed Adil Gilani, chairman of Transparency International Pakistan, told The Wall Street Journal the threats came from “high-level” Pakistani officials, telling him to halt his organization’s anti-graft investigations.

Imagining a World of Legalized Insider Trading by Bruce Carton in Compliance Week‘s Enforcement Action

There are arguments for legalizing insider trading that revolve around promoting the free flow of information–I get that. There are also arguments against legalizing insider trading that equate insider trading with the theft of information and conclude that it should be punished for the same reasons that we punish other forms of theft of property–I get that, too (and tend to agree). But put all that aside, for a moment, and join me in imagining a world where insider trading is completely legal. Here is how I see life in Legalized Insider Trading (LIT) World. …

Big 4 Bombshell: “We Didn’t Fail Banks Because They Were Getting A Bailout” by Francine McKenna in re: The Auditors

The leadership of the Big 4 audit firms in the UK has admitted that they did not issue “going concern” opinions because they were told by government officials, confidentially, that the banks would be bailed out.

SEC Relies On Questionable Legislative History In Proposed VC Definition by Keith Paul Bishop in California Corporate & Securities Law blog

The SEC considered California’s definition of “venture capital companies” in 10 CCR § 260.204.9 but felt that California’s rule was inconsistent with Congressional intent because the California rule doesn’t limit investments to companies that are not publicly traded. This sounds plausible, but the SEC’s evidence of Congressional intent is surprisingly weak. Essentially, it consists of the testimony of two individuals before the Senate Banking Subcommittee on Securities, Insurance and Investment Hearing a year before the enactment of the Dodd-Frank Act and several months before the Dodd-Frank Bill was even introduced into Congress.

5 Important Fraud Investigation Interview Tips by Lindsay Khan in FCPA Compliance and Ethics Blog

To conduct an investigation interview, you don’t need to be Sherlock Holmes- but it wouldn’t hurt to channel your inner detective. Fraud investigation interviews are a lot of work, but can take your investigation from ho hum to awesome. A successful investigation interview isn’t just a question and answer period. Asking good questions is just a small piece of a very big puzzle. To get the most out of your fraud investigation interviews, remember these 5 important steps: …

Budget Forces SEC to Shelve Whistleblower Office, For Now by Bruce Carton

In October, an 18% budget increase that the SEC was supposed to receive under Dodd-Frank was not included in a stopgap spending bill to fund government operations through early December. Now, the WSJ reports, the SEC has been forced to shelve its plan to open a new whistleblower office as mandated by Dodd-Frank. The agency says that it cannot open that office, and four other new offices created under Dodd-Frank, without an increased budget.

The Perfect Christmas Present: Your Own Aircraft Carrier

The Office Holiday Party – Alcohol-Induced Stupidity Can Lead to Serious Sexual Harassment Claims by Daniel Schwartz

There are no statistics out there to prove this point, but the traditional office holiday party has to be among the top places where claims of sexual harassment and hostile work environment start. Indeed, just a cursory look at some federal employment cases shows a common thread that run through each of them: alcohol-induced stupidity leading to serious sexual harassment claims.

Here are some recent compliance related stories I found interesting.

SEC Charges Two Longtime Madoff Employees with Fraud

The Securities and Exchange Commission today charged a pair of longtime employees at Bernard L. Madoff Investment Securities LLC (BMIS) with playing key roles in the Madoff Ponzi scheme. One employee produced phony account statements for investors and feathered her own accounts for personal gain, while the other conspired to cash out Madoff’s friends and family as the fraud collapsed in addition to creating phony account statements and tracking the Ponzi scheme bank account.

SEC Charges Steven Rattner in Pay-to-Play Scheme Involving New York State Pension Fund

The SEC alleges that Rattner secured investments for Quadrangle from the New York State Common Retirement Fund after he arranged for a firm affiliate to distribute the DVD of a low-budget film produced by the Retirement Fund’s chief investment officer and his brothers. Rattner then caused Quadrangle to retain Henry Morris – the top political advisor and chief fundraiser for former New York State Comptroller Alan Hevesi – as a “placement agent” and pay him more than $1 million in sham fees even though Rattner was already dealing directly with then-New York State Deputy Comptroller David Loglisci and did not need an introduction to the Retirement Fund.

To Crack Down on Insider Trading, UK to Require Recording Calls in the WSJ.com’s Law Blog

On Thursday, the U.K.’s Financial Services Authority said that starting in November next year, firms will have to record the cell phone conversations of some employees as part of its push to detect insider dealings.

Webinar Replay: The New Pay-to-Play Rules from Compliance Avenue

Earlier this year, the SEC adopted anti-fraud rule 206(4)-5 (the “Pay to Play Rule”) which serves to limit political contributions and “pay to play” activities. Prior to the effective date of this rule, all investment advisers should ensure that they build out comprehensive political contribution reporting and pre-clearance policies.

Mortgage Lending Practice after the Dodd-Frank Act by Bradley K. Sabel in the Harvard Law School Forum on Corporate Governance and Financial Regulation

On July 21, 2010, the President signed the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), enacting numerous provisions intended to reform the mortgage lending industry with an eye towards consumer protection. Many of these provisions are contained within Title XIV of the Dodd-Frank Act, the Mortgage Reform and Anti-Predatory Lending Act (the “Mortgage Act” or the “Act”)

Implications of Dodd-Frank for UK and EU fund managers and advisers

Many UK and EU investment managers and advisers (including those in the private equity, hedge
fund and real estate sectors) may be required to register with the US Securities and Exchange Commission (the “SEC”) with effect from 21 July 2011, even if they are already authorised by the UK Financial Services Authority or another EU regulator. Firms that register must comply with a number of US federal legal and regulatory requirements, many of which overlap with UK FSA rules. Some firms exempt from registration will still need to comply with certain record-keeping and reporting requirements. Whilst many of the detailed provisions of implementing legislation are yet to be finalised by the SEC, and there is considerable uncertainty about the scope of certain exemptions, firms should begin to consider the impact of the changes and plan for compliance.
2011.

Here are some compliance-related stories that I found interesting:

Stanford Moved After More Fisticuffs Leaves Him Bruised and Bloodied by Ashby Jones in WSJ.com’s Law Blog

He was granted a transfer Monday from a private Texas jail to a federal one closer to his lawyers in downtown Houston. The transfer came in the wake of news that Stanford got into a fight with an inmate on Thursday, in which he suffered a concussion, two black eyes and a broken nose, according to his lawyer, Kent Schaffer.

NASAA Urges SEC to Adopt “Investments Owned” Accredited Investor Test in Jim Hamilton’s World of Securities Regulation

In a comment letter to the SEC, the North American Securities Administrators Association (NASAA) has urged the Commission to adopt an “investments owned” test for accredited investors in private offerings conducted under federal Regulation D.

The End of the FCPA Facilitation Payment Exception? by Tom Fox

The only countries that permit facilitation payments are the United States, Canada, Australia, New Zealand and South Korea. Facilitation payments, however, are illegal in every country in which they are paid. They have come under increasing fire under the FCPA as inconsistent with the totality of US policy on anticorruption.

New FTC portal to assist businesses in complying with privacy and security laws in the Office of Inadequate Security

The Federal Trade Commission has a new Business Center at Business.ftc.gov that gives business owners, attorneys, and marketing professionals the tools they need to understand and comply with the consumer protection laws, rules, and guides the FTC enforces.

The Facade of FCPA Enforcement by Mike Koehler in FCPA Professor

I am pleased to release (here) my paper, “The Facade of FCPA Enforcement,” recently published by Georgetown Journal of International Law.

Joseph Brenner to join SEC as Chief Counsel of Enforcement Div. in Securities Docket

Joseph K. Brenner is joining the SEC as Chief Counsel of the Division of Enforcement. The SEC announced today that Brenner expects to begin his employment with the agency in the next several weeks. Brenner joins the SEC from law firm Wilmer Cutler, where he has been a partner since 1990. At Wilmer, Brenner was Vice Chair of the firm’s Securities Department and a member of its Securities Litigation and Enforcement Practice Group.

Here are some interesting compliance related stories that caught my eye recently:

Does that Pass the Smell Test by Eilene Zimmerman in the New York Times‘ Career Couch

Q. Your boss has asked you to do something that seems unethical. How can you determine whether your suspicions are correct?

Ethisphere’s 20 Ethics & Compliance Officers ‘Who Matter’ by Bruce Carton in Compliance Week‘s Enforcement Action

Are you an attorney who matters in the world of ethics and compliance? Find out by checking Ethisphere’s Second Annual “Attorney Who Matter” list, which includes a section listing the top ethics and compliance officers of major companies. Ethisphere states that the attorneys chosen in the ethics and compliance category are people who are “using their positions to advance the cause of ethics and corporate compliance both inside and outside of their organizations.”

Naming and Shaming in the Economist

Congressmen working late into the summer nights to overhaul America’s system of financial regulation were surprised when Bono started lobbying them. Yet the rocker-cum-campaigner helped to insert a far-reaching change into the legislation they were drafting. It has nothing directly to do with America’s financial mess, but it will push forward the fight against corruption in the developing world, a cause which has made some much-needed progress recently.

Russian police uncovered 35,000 cases of corruption in Bloomberg

Major bribe-taking increased by 17.5 percent from January to September compared with the same period of 2009, the Interior Ministry said in a statement distributed to reporters today. The average size of a bribe increased 1.5 times to around $1,400.

Is Protecting Our Brand A 24×7 Responsibility? by Kathleen Edmond.

My point in telling this story is not to make Best Buy look like heroes. Rather, I’m more interested in the underlying ethical implications of the scenario. As individual employees, what is our responsibility to the Best Buy brand? When it comes to our ability to impact the brand perception of Best Buy, are we ever truly “off the clock?”

Proposed Whistleblower Rules Promote Internal Reporting by Bruce Carton in Compliance Week‘s Enforcement Action

In determining the amount of the award, one factor the SEC will consider is whether the whistleblower reported the potential violation through “effective internal whistleblower, legal or compliance procedures before reporting the violation to the Commission.” The proposed rule explains that the SEC will consider higher percentage awards for whistleblowers who first report violations through their compliance programs because “corporate compliance programs play a role in preventing and detecting securities violations that could harm investors.” The higher award is therefore intended to encourage whistleblowers to first report securities violations to their corporate compliance programs.

NLRB Alleges that Connecticut Company Illegally Fired Employee Over Comments on Facebook by Daniel Schwartz in the Connecticut Employment Law Blog

In an unprecedented case, the NLRB is pushing all in over the battle on social media. And its press release today leaves little doubt where it is placing its chips — strongly in the employee’s favor.

Violent Video Games and the Supreme Court in Wired.com’s GeekDad

These are some recent compliance-related stories that caught my eye:

Take A Seat, and Other Bribes by Scott Greenfield in Simple Justice

And if you don’t think the FCPA matters to you, who do you think it paying the many millions of dollars forked over to lawyers and government, not to mention the opportunity costs of doing business overseas where only American corporations are subject to a constraint that flies against local culture and custom. Nobody is suggesting that actual bribery is a good thing and should be tolerated. It would be nice if this was pervasive attitude, but regardless, we can hold our corporations to a higher standard. However, the FCPA has put everyday business practices, with no quid pro quo to even the most fertile of young government lawyer minds, at risk. It’s going to be awfully hard for the United States to regain its position as an economic engine in the world with two hands and a foot tied behind its back.

Technology talk at ACC Annual Meeting by Susan Hackett in In-House ACCess

Brad Smith, the general counsel of Microsoft, and Kent Walker, the general counsel of Google were the featured speakers at the Chair’s Choice luncheon at the ACC Annual Meeting in San Antonio. A packed house of over 1,000 were on hand to listen to their vision of the future of technology and its impact on our clients and the legal practice. The session, hosted and moderated by ACC 2010 Chair Pat Hatler, was fed livestream and is available on the ACC website.

EU Agrees to Stronger Hedge Fund Regulation in Compliance Avenue

European Union finance ministers in Luxembourg reached unanimous agreement on a new set of rules regulating hedge funds in Europe.  The deal will create a single “passport” that allows approved hedge funds operating in one EU country access to investors across all other EU countries in exchange for more stringent regulation, which is to be governed by the European Securities and Markets Authority (“ESMA”).

Placement Agents Confused over Rule by Doug Halonen in Pensions & Investments

Many third-party placement agents were caught by surprise by the Oct. 1 deadline to register with the Securities and Exchange Commission. Some also were unclear whether they had to register, period.

FINRA Starts Social Media Audits from SocialWare

This past week we’ve heard multiple stories of FINRA starting to audit social media usage across regulated firms. The most interesting example we heard was of a FINRA auditor delivering printouts of LinkedIn profiles from registered reps of a firm. Attached to those was a letter instructing them to get usage “under control.”

Accessing an Adversary’s Public Social Networking Information — N.Y. Professional Ethics Opinion 843 by Robert D. Brown, Jr. in E-Discovery Law Alert

In Professional Ethics Opinion 843, issued on September 10, 2010, the New York State Bar Association’s Committee on Professional Ethics concluded that an attorney representing a party in pending litigation may access the public pages of another party’s social networking website to obtain publicly available information about that party.

Congressmen Dingell Bungles the FCPA by Mike Koehler in the FCPA Professor

In his letter Dingell asks Krafcik two FCPA related questions. The first – “[g]iven your comments about Hyundai’s being more American than U.S.-based automakers […] will Hyundai publicly commit to complying with all applicable parts of U.S. statute, including the Foreign Corrupt Practices Act (FCPA)?” Newsflash – Hyundai Motor America Corporation, a subsidiary of Hyundai Motor Co. of Korea, is a Florida corporation (see here) headquartered in Fountain Valley, California. In other words, it is a “domestic concern” under the FCPA and subject to the FCPA. Given this, I don’t see why Hyundai would be the least bit hesitant to publicly commit to complying with a law it is subject to.

Legal Implications of Cloud Computing — Part Five (Ethics or Why All Lawyers-Not Just Technogeek Lawyers Like Me-Should Care About Data Security) in the Information Law Group Blog

Here’s the reality:  Technology – whether we are talking cloud computing, ediscovery or data security generally – IS very much the business of lawyers.  This is true both from a legal ethics point of view and from a best practices data security point of view. …  [T]his post focuses on three recent documents, ranging from formal opinions to draft issue papers, issued by three very prominent Bar associations — the American Bar Association (ABA), the New York State Bar Association (NYSBA), and the State Bar of California (CA Bar).

Investment Advisor Registration Under Dodd-Frank: Implications For Securities Class Action Claimants by Luke Green of RiskMetrics

However, Dodd-Frank Act changes related to investment advisor registration may also have a notable impact on securities class actions, especially for private equity and hedge funds that currently enjoy exemption from registration. Generally speaking, many of these firms will be required to register with the SEC as investment advisors. Additionally, the regulatory oversight for firms that are already registered with the SEC will become more strenuous. The focus of this post is the impact that advisor registration changes will have particularly with regard to the securities class action claims filing process.

Learn from the Boy Scouts: be prepared by Jack Vinson

The Boy Scout motto is “Be Prepared.”  This idea shows up again and again in life and business.  For some reason, I pick up on it  right away when I am reading something new or hearing new ideas about how to organize or plan or get something done.  It’s usually in the form of “to succeed at _____, you must be prepared.”

Here are some recent compliance related stories:

Trusted Transactions, or Trusted Relationships? by Charles H. Green in Trust Matters

Much of the public dialogue today confuses these two distinctions. Is it Congress that people don’t trust? Or is it members of Congress who themselves are considered untrustworthy? To the average voter, it’s a distinction without a difference. I suspect the inability to tease them apart is itself a source of anger. But if we fail to separate them, we doom ourselves not only to nasty public discourse, but to failed solutions.

Report Says More Work Needed on Climate Risk Disclosure by by Melissa Klein Aguilar in Compliance Week’s The Filing Cabinet

Despite the attention it’s getting from some investor groups and new guidance aimed at compelling more reporting, corporate climate risk disclosure still has a long way to go, according to an analysis of 100 large-cap U.S. companies’ climate risk disclosures. Very few companies address all of the issues outlined in the Securities and Exchange Commission’s climate risk guidance in their most recent Form 10-K disclosures, an ISS Corporate Services report shows.

Nov. 10 Webcast: FCPA Investigations–The Pitfalls and the Pendulum from Securities Docket

On Wednesday, November 10, Securities Docket will host a webcast in which top current and former SEC officials will discuss FCPA investigations from every angle. Our terrific panel for this discussion will be:

• Cheryl Scarboro, Chief, SEC FCPA Unit;
• John Reed Stark, Managing Director, Stroz Friedberg, a digital forensics firm (former Chief, SEC Office of Internet Enforcement)
• Jonathan Barr, Partner, Baker Hostetler (former SEC Senior Counsel, DOJ Trial Attorney and AUSA).

Free Anti-Bribery & Corruption Masterclass from the Bribery Act

The workshops will take place in early 2011, in our office in London. Each will be geared to a specific industry sector (Pharmaceutical & medical device, construction, defence, oil & gas/extractive and information technology) and will look at the specific risk areas in each sector covered. The focus of the workshops will be the practical implications of the new law and compliance with it in that sector.

The FCPA Mulligan Rule by Mike Koehler in FCPA Professor

[O]ften times, when the requestor senses that it will not receive a favorable DOJ opinion, it simply withdraws the request. I confirmed that this practice does indeed occur with a former high-ranking DOJ FCPA official and others.

Call it the FCPA mulligan rule.

These are some compliance-related stories that recently caught my eye:

A Mansion, a Lamborghini, and Cocaine in Investor’s Watchdog

I often get the question, “How can we spot a financial scamster?” I always answer that, without training, you cannot spot them by sight and that the very best scamsters look just like the face in the mirror. But there is one exception to that rule. If he drives a Lamborghini, he’s running a con. Don’t give him your money.

New York Bans Manatt Law Firm From Pension-Fund Placements for Five Years

Law firm Manatt Phelps & Phillips LLP agreed to be banned for five years from appearing before any New York public pension fund and will pay $550,000 to the state, Attorney General Andrew Cuomo said. The accord stems from Manatt’s representation of financial firms seeking investments from public pension funds without a securities license, Cuomo said today in an e-mailed statement.

D&O Insurers Relieved of Advancing Allen Stanford’s Criminal Defense Fees by Kevin LaCroix in The D&O Diary

The insurers had denied coverage in reliance on the D&O policy’s money laundering exclusion. The exclusion applies if insured persons took any of a number of specified actions with respect to “criminal property,” which is a benefit the Plaintiff knew of suspected , or reasonably know or should have suspected was obtained through “criminal conduct.”

DOJ: Contractor Asked For $180,000 Bribe In A $10 Suitcase by Joe Palazzolo in WSJ.com’s Corruption Currents

Neil P. Campbell, an Australian citizen, was a senior construction manager for the International Organization for Migration, an intergovernmental group that has worked closely with the
Afghan ministries of Public Heath and Education to erect hospitals and schools. Since 2002, IOM has received more than $260 million in contracts from the U.S. Agency for International Development. Campbell sat on the IOM panel that awarded an Afghan construction company, identified in court documents as Sayed Bilal Sadath Construction Co., two subcontracts worth a total of about $15.5 million, one for a training college and the other for a hospital, according the indictment. Prosecutors say Campbell met with a person he believed was a representative of the Afghan company in July and demanded the $190,000 in return for allowing SBSCC to continue its work under the contracts.

SEC’s Proposed “Family Office” Rule and Rule 260.204.9 by Keith Paul Bishop in California Corporate & Securities Law blog

In The Snows of Kilimanjaro, Ernest Hemingway wrote: “‘The very rich are different from you and me.’ And how someone had said to Julian, ‘Yes, they have more money.’” That is certainly true in the case of the families described in the Securities and Exchange Commission’s recently proposed family office rule.

Ukraine Gov’t, Backed by US Law Firms, Files Second Corruption Suit by Joe Palazzolo in WSJ.com’s Corruption Currents

Plato Cacheris and his well-known Washington law firm Trout Cacheris PLLC announced in May that they had been been selected by the government of Ukraine to audit the country’s spending under former prime minister Yulia Tymoshenko, now opposition leader. The selection of white-collar specialists rather than Big Four auditing firms suggested that ”audit” in this case meant “corruption investigation.”

Caught Spying on Student, FBI Demands GPS Tracker Back by Kim Zetter in Wired.com’s Threat Level

A California student got a visit from the FBI this week after he found a secret GPS tracking device on his car, and a friend posted photos of it online.

Image:

Lamborghini Diablo. Work done … resprayed from metallic pearl green to shocking pink
Some rights reserved by Bobasonic