Navigating the Steps of an FCPA Investigation - Part 2

As we approach year end, many organizations are conducting performance evaluations and are allocating the bonus pool accordingly. And during the performance review process, low performers garner a lot of negative attention as you might expect. Indeed, one of the more widely recognized red flags in efforts to identify fraud risk is that of a disenfranchised employee, often a subset of the low performer pool. But what if I told you that the opposite may be true and it's high performers who pose a disproportionate amount of organizational risk?This episode was inspired by an article published by Richard Bistrong, Dina Denham Smith and @Ron Carucci: https://lnkd.in/eaK4sAji

I think for a lot of us, when we think about crypto, it still makes us cringe a little bit. And the question and the topic of today's episode is, should it still make us cringe? Whether you're a fan or you're shying away from it, the crypto ecosystem is expanding rapidly. Part of what is causing many to spurn crypto is due to reputational issues. These include the prevalence of crypto-themed fraud, and vulnerability to hacking, which make many retail investors uncomfortable and are keeping some people away. And at the same time, crypto adoption is expanding and the regulatory and enforcement environment has become more favorable to business. This confluence is opening increased opportunities for innovation, but it's also creating opportunities for a wide range of fraud schemes ranging from meme coin scans to sophisticated market manipulation. And some of the most egregious examples of crypto fraud, they continue to be addressed by law enforcement, and rightly so. But civil enforcement by victims and other private parties is equally important in addressing crypto fraud and holding crypto criminals accountable to their victims. It's also important to remember that criminal investigations primary objective is to punish those responsible, whereas making victims whole is secondary and certainly not a foregone conclusion. Civil litigation can really fill that void by seeking recovery for victims of things like pig butchering scams, crypto project, rug pulls, and institutional investment schemes such as those involving crypto startups that failed to execute. Learn more about your ad choices. Visit megaphone.fm/adchoices

Mexico is a critically important trading partner with the U.S.  Together with China and Canada, the three account for 36.5% of all U.S. imports and 32.1% of all U.S. exports amounting to over $1 trillion of trade each year. And yet, Mexico is always a challenging country in which to do business. The gap became the wealthiest and the poorest is enormous.  Violent crime and gun violence is extremely prevalent. Government and police corruption is widespread, and Mexico is amongst the largest global producers of cocaine, heroin and Fentanyl.  In addition to being a narcotics source country, because it borders the U.S., it is a major narcotics transshipment country.  And all of the money generated by narcotics trafficking has to be laundered.  In fact, Mexican money launderers are amongst the world’s most innovative who make use of a combination of trade-based money laundering, traditional money laundering through cash intensive businesses, bulk smuggling of U.S. currency, the black market peso exchange and other proven and widely used techniques. On a more positive note, Mexico is also a huge trading and manufacturing partner for a wide range of goods including automobiles and car parts, clothing, housewares, precious metals, oil and gas and a huge volume of agricultural products. Mexico is fraught with risk, tensions between Mexico and the U.S. are at an all time high. And yet, our two economies and national security are inextricably linked.  So how do U.S. companies with significant operations in Mexico continue to operate there?  And what should companies who are considering investing in the Mexican market do to mitigate all of this uncertainty? Learn more about your ad choices. Visit megaphone.fm/adchoices

Good informants are a critically important part of the law enforcement universe. They are double-edged swords though and sources can end a promising law enforcement career very quickly. Given their importance, the FBI and other law enforcement agencies evaluate their investigators in part on how many sources they have developed and how productive they have been. The steps that precede someone becoming an informant are often one or a series of bad choices coupled with an extra helping of being in the wrong place at the wrong time. One could argue that the decision to become an informant is just the latest in a series of bad decisions. I say that now because my performance evaluation is no longer dependent on source development. Otherwise, I would probably place more emphasis on the many positive aspects of playing for Team USA.

In this special crossover episode, Scott Moritz, President of White Collar Forensic LLC and host of the Fraud Eats Strategy, and Scott Maberry, host of the Nota Bene, discuss important considerations in internal investigations and how integrating each into your process can improve efficiency and lead to better and more consistent results. Learn more about your ad choices. Visit megaphone.fm/adchoices

In March of 2025, Former Inspector General of the Department of the Interior Mark Lee Greenblatt and I discussed the firing of the Inspectors General and its far-reaching implications for the country. With the blizzard of Executive Orders, high profile government firings and other maneuvers that appear to continue to tear down government agencies, it would be easy to forget about firing of the IGs and the long term consequences. Mark Lee Greenblatt is making it his mission so that the American people don’t lost sight of that fact. At the time of the firing of the IGs, we could only engage in conjecture as to what the long-term implications would be. On January 24, 2025, President Trump fired 16 inspectors general of the 16 largest, most complex U.S. government agencies and a 17th, the IG for USAID Paul Martin, 2 weeks later. The number has since risen to 20.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Petrobras, Braskem, Odebrecht, Stericycle and other U.S. style compliance and regulatory actions continue to be more commonplace across Latin America in the past decade. Indeed, there has been a tectonic shift in the implementation of leading industry compliance program overhauls following significant investigations and prosecutions. Some of those matters have included the use of legal tools such as monitorships and deferred prosecution agreements. While organizations on the receiving end of what is sometimes referred to in Latin America as a “leniency agreement” and/or the imposition of a compliance monitor may not welcome these measures or the costs. And yet done correctly, they can deliver long term benefits that over time may lead to improved profitability, transparency, stronger ethical culture and improved morale.  Learn more about your ad choices. Visit megaphone.fm/adchoices

FBI field offices serve and are apart of the communities where they are located, what most people don't realize is there is an open communication channel between the FBI and members of the community. Phone calls and walk-ins take place everyday, all day. And when members of the public report suspected crimes, acts of terrorism, or espionage, it's a critically important function and they direct emergency response as the reports unfold. This vital function is referred to as complaint duty, and the person designated to receive complaints serves as the Duty Agent. Duty Agents receive information from the public and from other law enforcement agencies. They assess information, determine what action(s) should be taken in response.

The world is a turbulent place in 2025 and doing business outside of the U.S. means needing to understand and to be able to react to a dynamic and evolving risk environment. The many countries and amazing people comprising Latin America are an important customer base and trading partner for most global organizations. Many global businesses have significant operations in the region and despite the turbulence, the region is full of opportunity. Drug cartels, transnational crime groups and gang violence, corrupt public officials, unstable governments, and professional kidnap for ransom operations are just a handful of the challenges that face global organizations operating in Latin America.  To take advantage of the bountiful opportunities across the region, organizations need to be able to proactively identify, manage and mitigate these and other operational risks. It starts with knowing who you are doing business with, their reputations, prior conduct and whether their political connections are a help or a significant hindrance.  Likewise, it is equally important to be able to deploy international counsel and their partners to triage crises, investigate negative events, stabilize volatile situations, understand and act upon the compliance implications and pursue avenues of recovery when losses occur.    Learn more about your ad choices. Visit megaphone.fm/adchoices

The FBI has jurisdiction when felons cross state lines to evade prosecution, referred to as Unlawful Flight to Avoid Prosecution or UFAP. Arrests require careful planning.  And yet the Yiddish proverb: “people plan, God laughs” often fits. Working civil rights cases against sworn police officers and deputy sheriffs was stressful and challenging especially since in a small FBI field office like Memphis, you may end up working alongside some of those same police officers working a bank robbery, a kidnapping or a fugitive case as Kevin and I both did.  Although all three of these topics and very serious and potentially very dangerous, my partner and I managed to find the humor in just about everything.  We hope you do too.