What is stranger than fiction? The stories of worldwide corruption. In this podcast series, co-hosts Tom Fox, the Voice of Compliance and Mike DeBernardis, partner at Hughes Hubbard, discuss some of the most audacious corruption cases in anti-corruption enforcement. More importantly, they will discuss the lessons learned on what your organization can do to prevent running afoul of international anti-bribery laws. In this episode of Season 2, Tom and Mike take a deep dive into the sordid history of the Bank of Credit and Commerce International (BCCI) (AKA Bank of Crooks and Criminals International). BCCI was founded in 1972 to facilitate banking for developing countries. BCCI quickly devolved into a hub for money laundering, terrorism financing, and regulatory evasion. They discuss the bank’s complex web of shell companies and insider loans and how a 1991 investigation led by Senator John Kerry exposed these illicit activities. The episode also highlights the involvement of notable figures like Clark Clifford and Robert Altman in BCCI’s operations and the subsequent legal battles they faced. Finally, the hosts examine the long-lasting impact of the BCCI scandal on global and U.S. banking regulations, including the establishment of stricter anti-money laundering laws and enhanced international cooperation. Key Highlights: The Rise and Fall of BCCI BCCI’s Regulatory Evasion Tactics BCCI’s Involvement in Terrorism and Illegal Activities The Congressional Investigation and Shutdown BCCI’s U.S. Operations and Legal Troubles High-Profile Trials and Acquittals Modern Parallels  Resources: Mike DeBernardis on LInkedIn HughesHubbardReed Tom Fox Instagram Facebook YouTube Twitter LinkedIn Texas Tax rate at 80% of 8.25%

What is stranger than fiction? The stories of worldwide corruption. In this podcast series, co-hosts Tom Fox, the Voice of Compliance and Mike DeBernardis, partner at Hughes Hubbard, discuss some of the most audacious corruption cases in anti-corruption enforcement. More importantly, they will discuss the lessons learned on what your organization can do to prevent running afoul of international anti-bribery laws. In this episode of Season 2, Tom and Mike take a deep dive into the historical case of Tyco, a quintessential example of dot-com era excess. Tom and Mike discuss Tyco’s journey from a small semiconductor company to a corporate giant under CEO Dennis Kozlowski. Kozlowski’s aggressive growth strategies and extreme personal expenditures, such as a $6,000 shower curtain, became infamous. The discussion covers fraudulent activities, including unauthorized bonuses and misuse of loan programs, ultimately leading to Kozlowski and CFO Mark Swartz’s convictions. The episode also examines the implications for corporate governance and the sweeping changes in third-party risk management prompted by the scandal. Key Highlights: The Rise of Tyco Dennis Kozlowski’s Leadership and Excesses Uncovering the Fraud The Loan Programs and Misconduct The Trial and Conviction Compliance Lessons from Tyco Board Oversight and Final Thoughts  Resources: Mike DeBernardis on LInkedIn HughesHubbardReed Tom Fox Instagram Facebook YouTube Twitter LinkedIn Mentioned in Podcast Taking Down the Lion by Catherine Neal How Compliance Saved Tyco by Joe Mont Texas Tax rate at 80% of 8.25%

What is stranger than fiction? The stories of worldwide corruption. In this podcast series, co-hosts Tom Fox, the Voice of Compliance and Mike DeBernardis, partner at Hughes Hubbard discuss some of the most audacious corruption cases in anti-corruption enforcement. More importantly, they will discuss the lessons learned on what your organization can do to prevent running afoul of international anti-bribery laws. In this first episode of Season 2, Tom and Mike review the Lockheed corruption scandal which led directly to the passage of the FCPA.  The discussion covers the significant bribery and corruption charges that led to the creation of the Foreign Corrupt Practices Act (FCPA). The hosts explore the international political fallout from the scandal, its impact on various countries including Japan, Italy, and the Netherlands, and the consequences for Lockheed. The episode highlights how the case influenced the development of anti-bribery laws worldwide and the roles played by figures like Stanley Sporkin in shaping these regulations. The conversation also touches on the ongoing challenges in combating corruption in the aerospace industry and its global implications. Key Highlights ·      The Lockheed Scandal: An Overview ·      High-Level Corruption and Its Unveiling ·      International Repercussions of the Lockheed Scandal ·      The Birth of the FCPA ·      Modern Implications and Compliance Resources Mike DeBernardis on LInkedIn HughesHubbardReed Tom Fox Instagram Facebook YouTube Twitter LinkedIn Texas Tax rate at 80% of 8.25%

Establishing trust can greatly affect the outcome of a case. Thomas Fox and Michael DeBernardis talk about ABB’s 2022 bribery case in South Africa, how self-disclosure benefits any situation, the DOJ’s approach on cracking down recidivists, choosing the right people for your team, and being wary of waivers. ▶️ The ABB Settlement with Thomas Fox and Michael DeBernardis  Key points discussed in the episode: (00:00:29) Thomas lays out the facts of the ABB settlement. Michael points out the DOJ’s plans for penalizing recidivists and ABB’s biggest compliance misstep. (00:07:07) Thomas emphasizes the importance of compliance oversight, being vigilant of billing in high-risk jurisdictions, and the benefit of ABB’s “almost” self-disclosure. (00:12:08) Michael discusses the impact of trust and incentivizing other recidivists to come forward and the risks of going off of real-time information. (00:18:27) Thomas mentions how having someone with experience concluding resolutions in the DOJ can make a difference. Even with a fairly low penalty, ABB is still required to report on its compliance program. (00:24:22) Michael prefers having an independent monitor in place. However, he highlights ABB’s trust in their team to do a thorough job of reporting. (00:27:31) Michael gives credit to ABB’s swift actions and extensive remediation, describing the DOJ’s outcome as “threading the needle”. Thomas believes the case is still a win for compliance. Michael drives home how doubling down on compliance pays off. ---------------------------------------------------------------------------- Do you have a podcast (or do you want to)? Join the only network dedicated to compliance, risk management, and business ethics, the Compliance Podcast Network. For more information, contact Tom Fox at [email protected]. Texas Tax rate at 80% of 8.25%

Rapid expansion presents great opportunity and great risk. Thomas Fox and Michael DeBernardis go deep into the Walmart bribery case, why immediate cooperation matters, tips for companies to prevent similar problems, the best course of action when working internationally, and projecting risk regardless of industry. ▶️ The Walmart Case with Thomas Fox and Michael DeBernardis  Key points discussed in the episode: (00:02:36) Thomas lays out the facts of the Walmart case. Michael points out how prevention could have saved millions of investigation costs. (00:09:50) Rapid expansion presents great opportunity and risk. Thomas emphasizes that extensive remediation and cooperation can bring significant credit. (00:14:14) Michael explains Walmart’s underwhelming conduct. Thomas brings up the congressional investigation, leader exits, and the business implications of publicizing. (00:20:46) Michael shares his advice to avoid Walmart’s case – setting realistic and proper incentives. He also provides hypothetical counsel if he had the chance to work with Walmart when the issue broke out. (00:25:09) Michael highlights the importance of timeliness, engaging with regulators as early as possible, and providing FCPA training when asked. ---------------------------------------------------------------------------- Do you have a podcast (or do you want to)? Join the only network dedicated to compliance, risk management, and business ethics, the Compliance Podcast Network. For more information, contact Tom Fox at [email protected]. Texas Tax rate at 80% of 8.25%

When beauty company Avon Products Inc. was charged in 2014 with violating the Foreign Corrupt Practices Act (FCPA), due to failure to detect and prevent bribery acts happening in China, they settled for ten times more than the cost they paid for in "gifts." Today, the FCPA investigation and enforcement action still stand as one of the most interesting cases for companies and compliance professionals to learn much from. Tune in to this new episode of The Corruption Files — The Avon China Bribes with Thomas Fox and Michael DeBernardis ▶️  Key points discussed in the episode: [00:05] Tom Fox shares the background facts on such an "insane case," with the investigation almost as interesting and important as the resolution.   [00:24] Michael DeBernardis states that Avon China Bribes the grandfather case for a couple of other very similar FCPA cases.  [02:16] The internal audit department already identified this issue of paying gifts and recommended FCPA training for the team, which did not push through due to the lack of budget. [02:59] In-fighting or territoriality is not surprisingly uncommon at big companies, leading to compliance and corruption problems.  [04:50] Tom cites how in 2012, the government became so frustrated with Avon that they started issuing grand jury subpoenas for individuals.  [12:56] A key part of the corporate process is to have systems that talk to each other. And if you don't, the costs can literally be astronomical.  [19:25] Avon's $8 million in bribes led to $500 million in pre-settlement costs, $135 million in settlement costs, and $250 million in post-settlement resolutions.   [20:50] Tom reminds companies that if there's a potentially high reward, it generally means there's high risk.   [24:02] Michael emphasizes that Compliance budgets can be tight, but skipping small training can catch up with you in the long run.  ---------------------------------------------------------------------------- Do you have a podcast (or do you want to)? Join the only network dedicated to compliance, risk management, and business ethics, the Compliance Podcast Network. For more information, contact Tom Fox at [email protected]. Texas Tax rate at 80% of 8.25%

If you’re aggressive with your response, you’ll be rewarded. Thomas Fox and Michael DeBernardis break down the facts and lessons learned in the Ralph Lauren bribery case in Argentina. Discover why anti-corruption programs and worker training matter, how speedy cooperation improves resolution leniency, and why organizations shouldn’t be complacent when it comes to risk. ▶️ The Ralph Lauren Bribery Case with Thomas Fox and Michael DeBernardis Key points discussed in the episode: (00:00:35) Thomas Fox gives an overview of the Ralph Lauren case. Michael DeBernardis highlights how this case shows that risk exists in any industry outside the U.S. (00:03:30) Providing an anti-corruption program and employee training got Ralph Lauren ahead of its resolutions and lowered their penalties. It was unclear what monetary value their bribe payments had. (00:08:21) Ensure your employees deeply understand your policies by translating them into different languages. Ralph Lauren took this step and greatly benefited in the case outcomes. (00:11:17) Ralph Lauren’s speedy response and decision for a policy rollout were rewarded with a lenient resolution. This sends a powerful message to regulators that you’re taking the issue seriously. (00:17:15) A tailored risk assessment is helpful. Set up a plan to spot audits and do compliance checks in foreign locations in a certain period. Ralph Lauren’s case is an early model for the corporate enforcement program. (00:21:22) The Ralph Lauren case jumpstarted the corporate enforcement policy. Their proactivity is the biggest takeaway for organizations to apply. ---------------------------------------------------------------------------- Do you have a podcast (or do you want to)? Join the only network dedicated to compliance, risk management, and business ethics, the Compliance Podcast Network. For more information, contact Tom Fox at [email protected]. Texas Tax rate at 80% of 8.25%

There’s no such thing as low risk or no risk. Crafting a web of bribery with a corrupt law firm, a Nigerian fixer, and Panalpina’s hand landed Parker Drilling in hot waters. Tune in as Thomas Fox, and Michael DeBernardis explore the facts of the Parker Drilling case, why overestimating risk is always for the better, how proper conduct impacts sentencing, and why having the right people can impact outcomes. ▶️ Parker’s Offshore Oil Drilling with Thomas Fox and Michael DeBernardis Key points discussed in the episode: (00:00:27) Thomas Fox lays out the basics of the Parker bribery case. (00:06:34) Michael DeBernardis explains the points on the Nigerian agent’s efforts, bribery for unfair business advantage, the lack of due diligence, and fake invoices. (00:10:46) Thomas Fox points out Sarbanes-Oxley as the main driver of compliance, the power of internal controls, the blurry calculations of discounts on the final sentencing, and the impact of Dan Chapman. (00:18:12) Michael DeBernardis highlights how the FCPA system maintains sentencing consistency but still has room for tightening and the nuances of every bribery case. (00:21:58) Thomas Fox underscores the importance of good conduct for the credit and an unanswered question. Michael DeBernardis reaffirms why having the right people in place is beneficial. (00:25:39) Thomas Fox and Michael DeBernardis leave their final thoughts on the case: Have a second set of eyes on dubious wire transfers. Rethink how risk analysis is done. Focus on what you’re doing every step of the way. ---------------------------------------------------------------------------- Do you have a podcast (or do you want to)? Join the only network dedicated to compliance, risk management, and business ethics, the Compliance Podcast Network. For more information, contact Tom Fox at [email protected]. Texas Tax rate at 80% of 8.25%

Risk is never static, but dynamic. The Goldman Sachs case has proven that playing with fire will always get you burned. Listen in as Thomas Fox and Michael DeBernardis dissect the rights and wrongs of the situation, why probing deeper into red flags is a must, the importance of setting off preventative controls right away, and why companies should publicly show their general policy statement. ▶️ The Goldman Sachs Corruption Case with Thomas Fox and Michael DeBernardis  Key points discussed in the episode: (00:00:20) Thomas Fox gives a brief background on the Goldman Sachs case. (00:03:02) Michael DeBernardis explains the successes and failures in compliance. (00:07:32) Thomas Fox points out the suspicious timing of bond offerings, the significant risk involved, why organizations should trust, but verify, and considering the visibility within the organizational structure. (00:14:33) Michael DeBernardis emphasizes why preventative controls like electronic surveillance should be implemented right away and how the Goldman Sachs case proves that improving your company structure is vital. (00:18:35) Thomas Fox and Michael DeBernardis talk about the Monaco Memo and how the Goldman Sachs case perfectly applies the implementation of clawbacks. (00:24:28) Michael DeBernardis encourages companies to publish their general policy statement to prevent future problems. ---------------------------------------------------------------------------- Do you have a podcast (or do you want to)? Join the only network dedicated to compliance, risk management, and business ethics, the Compliance Podcast Network. For more information, contact Tom Fox at [email protected]. Texas Tax rate at 80% of 8.25%

Brazilian petroleum company Petrobras caught itself in an intricate bribery scheme involving top construction corporations like Odebrecht and Braskem and political parties. Thomas Fox and Michael DeBernardis lay out the facts and share their insights on what lessons other companies can learn and practice to avoid similar compliance troubles. ▶️ Odebrecht/Braskem with Thomas Fox and Michael DeBernardis  Key points discussed in the episode: (00:00:32) Thomas Fox gives a brief background on the Petrobras-Odebrecht-Braskem case. (00:03:35) Michael DeBernardis clarifies more facts on the case, such as the bribery feedback loop and the increasing spending on litigation. Thomas Fox adds that even if you “create bad law, it’s still law.” It has also brought attention to compliance authorities and politicians in Brazil. More companies in other countries were also involved in the scheme. (00:11:58) The bribery scheme was intricately designed to avoid compliance detection. Michael DeBernardis recommends ensuring maximum procurement controls. Petrobras employees benefited mostly in this case. This case has put attention to the importance of having visibility into supply chains. (00:15:57) Michael DeBernardis emphasizes the importance of having appropriate controls to mitigate supply chain risk despite being lower than other aspects of the business. It also exposed the massive scale of corruption.  (00:21:54) Michael DeBernardis and Thomas Fox hit home their suggestions to companies: Do a deep risk analysis, get to know your joint venture partners, and any form of defense is helpful. Although the danger is not easy to detect up front, it can help lessen the risk. Also, you should not also close the doors in working with businesses with a little bit of controversy. ---------------------------------------------------------------------------- Do you have a podcast (or do you want to)? Join the only network dedicated to compliance, risk management, and business ethics, the Compliance Podcast Network. For more information, contact Tom Fox at [email protected]. Texas Tax rate at 80% of 8.25%