On September 27, 2018, the Securities and Exchange Commission (“SEC”) filed a complaint, alleging Tesla CEO and Chairman, Elon Musk, committed stock market fraud by misleading investors. The matter was resolved through settlement and later approved by a judge. It is hoped that the settlement will prevent Tesla and Musk from causing future market disruption and harm to shareholders.
The economic rebound seen in the last decade has resulted in a substantial increase in business travel, both foreign and domestic. Increasingly complex global supply chains are necessitating that business leaders travel the world in order to expand their businesses and forge valuable new partnerships. Unfortunately, this increase in travel also presents an increased risk for the theft of proprietary or confidential information.
Before the Affordable Care Act (“ACA”) was passed, critics exclaimed that the government had no right to interfere in a citizen’s healthcare. When it was passed, the requirement that every American purchase health insurance caused America to scramble to comply. However, in a year all the critics might be silenced. Recently, Congress repealed the individual mandate’s tax penalty. How will Americans comply with the new act?
Arizona and Idaho are the most recent in a long line of states declining to adopt the American Bar Association’s (ABA) new Model Rule 8.4(g), which is being called the “anti-discrimination” rule. This rule was adopted by the ABA to specifically address harassment and discrimination based on race, religion, sex, disability, and LGBTQ status in all conduct related to the practice of law. However, because of the broad construction and application of the rule, many states and attorneys have concerns that compliance with this anti-discrimination rule will infringe on their First Amendment rights of freedom of speech and religion.
In a recent effort to strengthen the money-laundering defenses across the U.S. financial system, small banks and credit unions are being given the option to pool their resources. In a statement issued by the federal depository institutions regulators and the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) the federal regulators detail that certain banks and credit unions can enter into collaborative agreements to pool resources for anti-money-laundering compliance purposes. The new regulation will help smaller community banks address the risk of financial crime while keeping the costs low and ultimately help prevent money-laundering.
Last year the #MeToo movement swept across the country, sparking national attention and debate. Fast forward 11 months and we still grapple with breaking news which exposes the next unsuspecting top executive of workplace misconduct. Victims are finally breaking their silence, leading corporations to reassess corporate culture. In this modern age, compliance is not enough. Corporations might need to reconsider decades old written policies and training programs to ensure safety, success, and growth in the workplace.
The battle over pesticide use has long plagued the agricultural sector. The legal challenges to the use of chlorpyrifos has created a debate about how to protect our agricultural system and the harm caused by these dangerous chemicals. A lawsuit was filed based on the EPA’s failure to follow advice of their own scientists. The battle over the use of certain pesticides, and the shifting focus of the EPA has created concerns over the ethical standards of officials in key positions.
Ted Banks is a partner at the firm Scharf Banks Marmor and is also an adjunct professor at Loyola University Chicago School of Law, where he teaches a course on corporate compliance. At Scharf Banks Marmor, Mr. Banks concentrates his practice on compliance, antitrust, food law, and other corporate issues. He entered compliance by accident many years ago, and has been an innovator in the field ever since. Mr. Banks has been recognized as an Illinois “Super Lawyer” in the areas of corporate governance and compliance, and he has also been named a Risk & Compliance Trailblazer and Pioneer by the National Law Journal. Here, he has shared his story, tells us the real deal about compliance, and gives advice to students who wish to make compliance their career.
After Equifax, one of the largest credit reporting agencies, leaked 143 million people’s personal information in 2017, many state legislators scramble to regulate how businesses collect, protect, and use customer’s personal information.
The rise of electronic cigarettes was initially met with relaxed FDA regulation given optimism that they could help adult smokers curb use of more toxic combustible cigarettes. This optimism was in spite of e-cigarettes’ growing popularity among adolescents and young adults. On September 12, the FDA signaled a pivot from this approach when FDA Commissioner Scott Gottlieb described youth e-cigarette use as having reached epidemic proportions. Gottlieb announced that the FDA had issued more than 1,300 warning letters and fines to retailers caught selling e-cigarette products to minors. It also issued an order to the five major e-cigarette manufacturers (Juul, Vuse, Blu, MarkTen XL, and Logic) to each submit a plan outlining how the company will address youth access and use of their products. Failure to submit a sufficient plan could lead the FDA to revisit its earlier decision on flavored e-cigarette products, which allowed manufacturers a grace period until 2022 to receive FDA approval.