Copyright © 2011 Catelas Inc. All rights reserved FCPA Compliance – Jan 2011
The Regulatory Risks & Costs of doing business overseas
Investigations, Resolution & Monitoring
Making you smarter, earlier!
FCPA compliance
Copyright © 2011 Catelas Inc. All rights reserved FCPA Compliance – Jan 2011
The ProblemPanel Speakers
• Jeff Seymour, Principal, Analytic & Forensic Technology
Financial Advisory Services
• Eddie Cogan, CEO & founder of Catelas, Inc.
Copyright © 2011 Catelas Inc. All rights reserved FCPA Compliance – Jan 2011
2010: 50 individuals had been charged and nearly $2 billion collected,2005: 5 individuals and roughly $16.5 million collected
Under Dodd-Frank, which was signed into law in July, the SEC can sue an individual who “recklessly” aids a fraud even if the person isn’t aware of the wrongdoing.
UK Bribery Act…..new offense for failure to prevent bribery
Intense Enforcement
2009 20100
0.51
1.52
2.5
DOJ FCPA
$ Billions
November 2009 Assistant Attorney General Lanny Breuer predicted the DOJ’s “new era of FCPA enforcement” when he stated, “In fact, prosecution of individuals is a cornerstone of our enforcement strategy…. Put simply, the prospect of significant prison sentences to individuals should make clear to every corporate executive, every board member, and every sales agent that we will seek to hold you personally accountable for FCPA violations.”
Copyright © 2011 Catelas Inc. All rights reserved FCPA Compliance – Jan 2011
The ProblemWhat are the authorities asking for?
Self-regulation and reporting• Awareness of international business
environment • Comprehensive monitoring and audits• Self-reporting of potential violations• Taking ownership from the top [executives]
Co-operation and responsiveness• Be prepared for investigations • Be responsive and co-operative
self-policing international business operations
Copyright © 2011 Catelas Inc. All rights reserved FCPA Compliance – Jan 2011
The ProblemThe current process
Challenges• No monitoring exists, so few red flag alerts• Investigations are disruptive, costly and
silo’ed• Difficult to quickly assess risk & prioritize
Current processes:…silo’ed, slow, search based, iterative & no big picture
Any Investigation ... • Incomplete picture; sample of custodians• Involves many organizations, languages• Collection alerts organization (leads to
cover-up)• Who’s missing? Who is key?• Time is money – the longer this drags on,
the more it costs
Copyright © 2011 Catelas Inc. All rights reserved FCPA Compliance – Jan 2011
We don’t work with just “documents”…. We Identify people & relationships…
…and focus on the relevant data.
Relationship Forensics
Do mis troa negativaj priskribo, veo norde grado kvintiliono do. Ali ke olog iomete internacia. As kilo aliam inkluzive
Do mis troa negativaj priskribo, veo norde grado kvintiliono do. Ali ke olog iomete internacia. As kilo aliam inkluzive
Do mis troa negativaj priskribo, veo norde grado kvintiliono do. Ali ke olog iomete internacia. As kilo aliam inkluzive
Do mis troa negativaj priskribo, veo norde grado kvintiliono do. Ali ke olog iomete internacia. As kilo aliam inkluzive
Do mis troa negativaj priskribo, veo norde grado kvintiliono do. Ali ke olog iomete internacia. As kilo aliam inkluzive
Do mis troa negativaj priskribo, veo norde grado kvintiliono do. Ali ke olog iomete internacia. As kilo aliam inkluzive
Do mis troa negativaj priskribo, veo norde grado kvintiliono do. Ali ke olog iomete internacia. As kilo aliam inkluzive
Do mis troa negativaj priskribo, veo norde grado kvintiliono do. Ali ke olog iomete internacia. As kilo aliam inkluzive
Do mis troa negativaj priskribo, veo norde grado kvintiliono do. Ali ke olog iomete internacia. As kilo aliam inkluzive
Do mis troa negativaj priskribo, veo norde grado kvintiliono do. Ali ke olog iomete internacia. As kilo aliam inkluzive
veo norde grado kvintiliono do. Ali ke olog
veo norde grado kvintiliono do. Ali ke olog iomete
veo norde grado kvintiliono do. Ali ke olog
Copyright © 2011 Catelas Inc. All rights reserved FCPA Compliance – Jan 2011
How We Do It
Patent-pending industry 1st’s
Unique Behavioral Science algorithms uncover the strong relationships inside & outside firm
Social Network Analysis identifies missing custodians & uncovers ‘friends in common’
Log file analysis allows ENTIRE company network to be uncovered before collection
Automated monitoring for Investigations & Compliance
IMEmail Telephony Log files
Behavioral Sciences
Network Analysis
Data
Analytics
How We Do It
Value drivers Highly scalable & comprehensive Easy to use, deploy & maintain Low cost of ownership
Copyright © 2011 Catelas Inc. All rights reserved FCPA Compliance – Jan 2011
The ProblemA new paradigm
Imagine if… at any time you could…• Understand the relationships inside & outside the
organization• Identify the key people & the nature of their relationship• …..all before translation & sometimes before collection
Now…• Collection is more focused• Only 1% of email is translated and reviewed
So you can…• Investigate quickly & conclusively• Negotiate / Resolve early in the
cycle• Demonstrate a comprehensive
Monitoring & Audit approach
Copyright © 2011 Catelas Inc. All rights reserved FCPA Compliance – Jan 2011
Kick-backs - FCPA
General Electric Company, whose compliance program is among the most respected and admired in the world, has settled civil violations of the Foreign Corrupt Practices Act with the SEC.The company agreed to pay $23.4 million to resolve claims of kick-backs to Iraqi government officials for lucrative supply contracts by four GE subsidiaries paid under the United Nation's oil-for-food program.
SEC fines GE $23M for FCPA violations
Quickly assess the severity of the investigation. Co-operate with authorities. Negotiate early.
Early resolution = reduced fine and less PR exposure
Kick-backs - FCPA
Copyright © 2011 Catelas Inc. All rights reserved FCPA Compliance – Jan 2011
The Problem
Proactive Monitoring• Monitor known threats; identify red flags• Identify Risk – relationships with press,
competitors, government • Information Barriers & Watch-lists• Employee Behavior - identify departing
employees, rogue emails, data theft
Current Investigations• Rapid assessment of the case • Identify and prioritize who is
involved• Direct the investigation to the
relevant information
FCPA Investigations
Copyright © 2011 Catelas Inc. All rights reserved FCPA Compliance – Jan 2011
The ProblemWhat Catelas delivers
Smarter, more focused investigations; monitor and identify potential risk without collecting a single email
Intelligent Discovery Rapidly establish who and what information to collect
Early Case Analytics Direct the investigation to the relevant information. Define case strategy early.
Pro-active Monitoring Monitor entire company, focusing on risk areas and potential red flags
Reduced FCPA cost and exposure
Copyright © 2011 Catelas Inc. All rights reserved FCPA Compliance – Jan 2011
Typical FCPA deployment
Intelligent Discovery(Log File analysis)• Before Collection:…• Identify who is involved (from HQ)• Provide Early Case Intelligence report• Assess case importance• Define case strategy
Early Case Analytics(Native email analysis)
• Deployed on laptop or remotely accessed server
• Prioritized review of communications between key custodians
• Key word analysis and network maps• Create case report for executive
review
Multiple Deployments
Copyright © 2011 Catelas Inc. All rights reserved FCPA Compliance – Jan 2011
Thank You
Eddie Cogan617 407 [email protected]
Thank you
Jeff Seymour(718) [email protected] www.deloitte.com