Enforcing Foreign Compliance with U.S. Regulations

Posted on Categories Uncategorized

Compliance standards in the United States come from the laws and policies enacted by the government and its related agencies. Administering U.S. standards on foreign institutions, public or private, poses a unique challenge. Our public and private companies are held accountable by federal, state, local, or agency rules, as well as the guidelines providedby the United States Sentencing Commission. But foreign organizations, in theory, have no real obligation to follow our lead. There have been several notable attempts in recent years to enact legislation on foreign organizations and impose sanctions for noncompliance, and it is likely a continuing trend as the compliance industry grows.
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Court’s Denial of Motion to Dismiss Advances Blocks of Offshore Drilling

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Congress has granted the President the authority to withdraw the Secretary of the Interior’s grants of mineral rights on public lands. However, President Trump has used that same grant of power to remove withdraws of some of the protections President Obama placed. On May 3, 2017, a group of environmental non-profits filed a lawsuit against the Trump Administration in the Federal District Court of Alaska, alleging that his actions were an unauthorized use his Presidential power. On March 20, 2018, the Court denied the Defendant’s motion to dismiss.
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Artificial Intelligence and Compliance

Posted on Categories The Art of Compliance

With the rise of the machine at our doorsteps, companies (those with foresight, anyhow) will be finding more innovative ways to gain the edge while using those machines. One of the ways companies will seek this edge is through the use of Artificial Intelligence (“AI”). AI is one of the hottest, and arguably controversial, topics confronting mainstream business today. Many are skeptical of it, but also hopeful, despite the controversy surrounding the field. While both sides of the controversy have their reasons, some on each side are generally clueless as to how AI is manifesting itself today, and how it will in the future. How will it be applied? What is it useful for? What follows is a primer on current applications of AI and how they may be applied to the compliance world.
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Quis Custodiet Ipsos Custodes: “Who Watches the Watchmen” Oversight of Compliance Departments and Professionals

Posted on Categories The Art of Compliance

In the graphic novel and film “The Watchmen,” there is a reoccurring phrase: “Who watches the watchmen?” In context, it’s an indictment of the comic book world’s broken justice system. However, in a compliance context, the concept can be just as important. In a recent discussion with a hospital system’s compliance officer, he raised the point that a company’s compliance department is seen as the ultimate authority and expertise in laws and regulations, monitoring compliance and noncompliance, and implementing corrective and disciplinary actions. Yet while many compliance professionals may assume that their actions are always compliant, who oversees those who are overseeing systems and organizations? Who ensures that compliance is compliant?
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Dodging Pitfalls on the Path to Success: Sales Tax and E-Commerce Entrepreneur

Posted on Categories The Marketplace

Imagine you are an e-commerce entrepreneur and you log in to your reporting system to see how sales have been over the past week. You notice that you’ve made a good sale to a customer in the state of Illinois. As you are based out of Florida, you pause for a moment to marvel at the progress of technology and how your products can be delivered to someone’s home thousands of miles away from you. Little do you realize, but you may be on the hook for collecting and reporting sales tax to the California Board of Equalization.
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Coal Ash Regulation: Revisited

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Power plants generate a residue after burning coal called coal ash. In October 2015, the Environmental Protection Agency (EPA) established standards to address the environmental dangers and health risks of coal ash. In May 2017, industry officials petitioned the EPA to reconsider the rule, claiming adverse effects due to high compliance costs. The EPA agreed to review the coal ash regulations and announced one of two proposals to amend regulations in March 2018. The new proposal provides facilities more flexibility in coal ash disposal based on their needs.
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Escobar’s Materiality Standard Shields Organizations from the Risk in Risk Adjustment Payments

Posted on Categories Fraud & Abuse

Finance Director for UnitedHealth Group brought qui tam suit against UnitedHealth Group, Inc. alleging that the organization upcoded risk adjustment data resulting in increased payments (more than $1.14 billion) to UnitedHealth Group. The Department of Justice (DOJ) intervened in the case, yet UnitedHealth Group was successful in getting the primary False Claims Act Claims dismissed by arguing that the Centers for Medicare & Medicaid Services (CMS) would not have refused to make the adjustment payments had they known of the errors in the risk adjustment. The Escobar materiality standard helps clarify threshold level of risk to Managed Care Providers in attesting to their risk adjustment payments; the falsities must have had an impact on the respective payment.
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The Balancing Act: Exclusive Ownership Rights and Digital Content Sharing

Posted on Categories The Marketplace

The Internet has given millions of people the capability to share information with each other with just the click of a button. People have grown accustomed to learning about current events, researching, and gathering information all through digital news sources. Unfortunately, the ease of the Internet has also created complications with regulating how users share that information. As technology rapidly advances, the legal limitations concerning intellectual property rights have become blurred, resulting in different interpretations of the Copyright Act of 1976. This has complicated user compliance and created difficult questions for the courts to answer based largely on law that was created before many of the capabilities of the Internet existed. There is a need for consistency and balance in this area of the law so that copyright owners are afforded adequate protection and the Internet can continue to serve as an information gathering, content sharing platform without fostering infringement.
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What Google’s Genericide Win Means for the Future of Trademark Law

Posted on Categories The Marketplace

In 2014, in the District Court of Arizona, a judge ruled that “Google” was not a generic term and was eligible to receive trademark protection in Elliott v. Google. On appeal, the Ninth Circuit affirmed the district court’s ruling. In 2011, Forbes estimated that the “Google” trademark was worth $113 Billion; the trademark is worth more now in 2018 and the company’s trademark is likely its most valuable asset. The suit first ensued when Elliott purchased over 700 domain names with the word “Google” and after the company had successfully won a name dispute, Elliott filed to cancel “Google” trademarks. Elliott claimed that Google was a generic term and should not receive trademark protection. The Ninth Circuit’s ruling in this case will most definitely affect companies and entrepreneurs of all sizes, perhaps giving companies more protection than they were afforded in the past; what some are calling an unintended consequence.
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