DE Shaw Enforcement Action for Pre-taliation

10/04/23 • 17 min

The award-winning Compliance into the Weeds is the only weekly podcast that takes a deep dive into a compliance-related topic, literally going into the weeds to explore a subject more fully. Are you looking for some hard-hitting insights on sanctions compliance? Look no further than Compliance into the Weeds! In this episode, Tom and Matt consider the recent SEC pre-taliation enforcement action involving DE Shaw.

The recent $10 million settlement by financial services firm De Shaw over a retaliation case has sparked a significant conversation about whistleblower policies. This case, the largest of its kind, centered around employment agreements that prohibited employees from speaking to governmental agencies without company authorization, a practice that has been illegal since 2011 under the Dodd Frank Act. Matt views this as a significant issue, emphasizing the need for clear processes and alignment between policies and employment templates. He also expresses surprise at the rarity of instances where pretaliation clauses actually deter whistleblowers, suggesting that the problem lies in the language used in employment agreements.

Tom sees this as a problem of process. He believes that companies need to have a clear process in place to ensure that changes in employment policies are reflected throughout all relevant documents and agreements. He criticizes companies like De Shaw for updating their policies but failing to update their employment templates, which led to the inclusion of language that prevented whistleblowers from coming forward. Join Tom Fox and Matt Kelly as they delve deeper into this topic on the Compliance into the Weeds podcast.

Key Highlights:

Largest pre-taliation settlement in financial services
Persistent Non-Compliance Issues with Dodd Frank
The Rise of Multimillion-Dollar Penalties

Resources:

Matt in LinkedIn

Tom

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Key Highlights:

Largest pre-taliation settlement in financial services
Persistent Non-Compliance Issues with Dodd Frank
The Rise of Multimillion-Dollar Penalties

Resources:

Matt in LinkedIn

Tom

Learn more about your ad choices. Visit megaphone.fm/adchoices

Previous Episode

3M OFAC Enforcement Action

The award winning, Compliance into the Weeds is the only weekly podcast which takes a deep dive into a compliance related topic, literally going into the weeds to more fully explore a subject. Looking for some hard-hitting insights on sanctions compliance? Look no further than Compliance into the Weeds! In this episode, Tom and Matt consider the recent OFAC enforcement action involving 3M.

3 3M, found itself in hot water after violating Iran sanctions, leading to a hefty fine of $9,618,477 from the Treasury Department and OFAC. This violation, involving a subsidiary selling goods to a German reseller who then sold them directly to Iran, including to a sanctioned entity.

Tom points out the significant failures in controls and monitoring within the company that led to the violation. He emphasizes the importance of end user statements and monitoring in compliance functions to prevent such violations. On the other hand, Matt acknowledges that while 3M made an effort to comply with the Iran nuclear deal, changes in the arrangement that were not properly communicated or approved led to a violation of the sanctions agreement. He also underscores the importance of monitoring and obtaining end user statements to ensure compliance with export control laws.

Join Tom Fox and Matt Kelly as they delve deeper into this topic in the latest episode of the Compliance into the Weeds podcast.

Key Highlights

· Sanctions Compliance and Ongoing Monitoring

· Challenges and Consequences of Sanctions Compliance

· Sanctions Settlement for Selling Goods to Iran

· Anticipated Impact of Recent Events on 3M

Resources

Matt in LinkedIn

Matt on Radical Compliance

Tom

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Next Episode

New M&A Safe Harbor

The award-winning Compliance into the Weeds is the only weekly podcast that takes a deep dive into a compliance-related topic, literally going into the weeds to explore a subject more fully. Are you looking for some hard-hitting insights on sanctions compliance? Look no further than Compliance into the Weeds! In this episode, Tom and Matt consider the recent speech by DAG Lisa Monaco, creating a Safe Harbor for M&A under the FCPA and beyond.

The Justice Department has recently unveiled a new policy aimed at fostering cooperation and compliance within the corporate sector, especially during acquisitions. This policy, which offers companies the chance to avoid charges for compliance violations discovered during the acquisition process, has sparked a lively discussion among compliance experts. Matt views this policy with a mix of curiosity and uncertainty. He acknowledges its potential benefits but also raises concerns about its practical execution, particularly in relation to antitrust enforcement and the treatment of companies new to acquisitions.

The application of the policy across various DOJ divisions and its interactions with other enforcement organizations intrigue Tom. He also questions whether acquiring companies will still receive a “free pass” if the acquired company engages in antitrust behavior. To delve deeper into these perspectives and explore the potential implications of this new policy, join Tom Fox and Matt Kelly in the latest episode of the Compliance into the Weeds podcast.

Key Highlights: