What is stranger than fiction? The stories of worldwide corruption. In this podcast series, co-hosts Tom Fox, the Voice of Compliance and Mike DeBernardis, partner at Hughes Hubbard, discuss some of the most audacious corruption cases in anti-corruption enforcement. More importantly, they will discuss the lessons learned on what your organization can do to prevent running afoul of international anti-bribery laws.
In this episode of Season 2, Tom and Mike explore the Barings Bank scandal
The focus is on the actions of Nick Leeson, a trader who single-handedly bankrupted the historic institution. The discussion highlights the critical mistakes made by the bank, including a lack of oversight and the dangerous combination of trading and settlement roles. The podast also explores the broader implications for compliance and risk management in financial institutions, emphasizing the importance of segregation of duties and the pressures that can lead to unethical behavior.
Key Highlights:
The Rise and Fall of Barings Bank
The Role of Oversight in Financial Institutions
Lessons Learned from the Barings Bank Scandal
How does the Fraud Triangle apply?
Segregation of Duties-as basic a control as you can have in place
Memorable Quotes (all from Mike DeBernardis)
“Nick single-handedly bankrupted the oldest merchant bank.”
“He was a golden boy trader making tons of money.”
“Barings Bank was sold for one pound.”
Resources:
Mike DeBernardis on LinkedIn
Hughes Hubbard & Reed
Tom Fox
Instagram
Facebook
YouTube
Twitter
LinkedIn
Texas Tax rate at 80% of 8.25%
What is stranger than fiction? The stories of worldwide corruption. In this podcast series, co-hosts Tom Fox, the Voice of Compliance and Mike DeBernardis, partner at Hughes Hubbard, discuss some of the most audacious corruption cases in anti-corruption enforcement. More importantly, they will discuss the lessons learned on what your organization can do to prevent running afoul of international anti-bribery laws.
In this episode of Season 2, Tom and Mike explore the infamous Crazy Eddie scandal, one of the most audacious corporate frauds in history.
The scheme, orchestrated by Eddie Antar and his family during the 1980s and 1990s, involved tax evasion, inventory inflation, and money laundering through a method known as the ‘Panama Pump.’ They defrauded various stakeholders, including customers, bankers, investors, and governmental bodies, ultimately leading to Eddie’s extradition from Israel and imprisonment. This episode dissects the scandal’s rapid unraveling post-IPO, focusing on flawed corporate governance and oversight. By examining the pitfalls of family-controlled businesses and the lack of transparency exemplified by the Crazy Eddie and Boar’s Head Listeria scandals, the hosts underscore the critical importance of checks and balances in corporate structures.
Key Highlights:
The Audacious Fraud of Crazy Eddie
Tax Evasion and Inventory Inflation
The Panama Pump Scheme
The Whistleblower: Sam Antar
Lessons in Corporate Governance
Resources:
Mike DeBernardis on LinkedIn
HughesHubbardReed
Tom Fox
Instagram
Facebook
YouTube
Twitter
LinkedIn
Texas Tax rate at 80% of 8.25%
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Navigating Corporate Governance: The Hutchinson Whampoa Scandal
What is stranger than fiction? The stories of worldwide corruption. In this podcast series, co-hosts Tom Fox, the Voice of Compliance and Mike DeBernardis, partner at Hughes Hubbard, discuss some of the most audacious corruption cases in anti-corruption enforcement. More importantly, they will discuss the lessons learned on what your organization can do to prevent running afoul of international anti-bribery laws.
In this episode of Season 2, Tom and Mike explore a unique corporate scandal from early 2000s Hong Kong involving Hutchison Whampoa Limited.
Unlike typical cases, there were no allegations of bribery, corruption, or significant financial penalties. Instead, the scandal revolved around the complex corporate governance issues and the control wielded by billionaire Li Ka-shing. The conversation delves into the importance of robust corporate governance, particularly in safeguarding the interests of minority shareholders in companies dominated by powerful individuals or families.
Tom and Mike highlight the expanding role of compliance professionals in overseeing corporate governance, especially with the rise of Environmental, Social, and Governance (ESG) criteria. They discuss the importance of board independence, the need for effective internal controls, and how compliance professionals can aid in board training. With compelling examples, such as the interlock of directors in the energy sector and the Bluebell Ice Cream scandal, the episode provides a thorough insight into how corporate governance issues can impact reputations and operational integrity.
Key Highlights:
Corporate Governance and Compliance
The Role of Boards in Risk Management
Compliance Professionals and Corporate Governance
Importance of Independent Board Members
Internal Controls and Compliance
Training Boards for Effective Governance
Resources:
Mike DeBernardis on LinkedIn
HughesHubbardReed
Tom Fox
Instagram
Facebook
Texas Tax rate at 80% of 8.25%
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Stranger Than Fiction: The Bre-X Mining Scandal
What is stranger than fiction? The stories of worldwide corruption. In this podcast series, co-hosts Tom Fox, the Voice of Compliance and Mike DeBernardis, partner at Hughes Hubbard, discuss some of the most audacious corruption cases in anti-corruption enforcement. More importantly, they will discuss the lessons learned on what your organization can do to prevent running afoul of international anti-bribery laws.
In this episode of Season 2, Tom and Mike take a deep dive into the Bre-X mining scandal of the mid-1990s. Tom and Mike explore the fraudulent gold discovery announced by the Canadian company in Indonesia, which led to a massive media frenzy, skyrocketing stock prices, and eventually, a colossal financial collapse. The discussion includes the scandal’s sensational aspects, lack of individual prosecutions, and the regulatory responses that followed. Fox and DeBernardis also examine the greed and desperation driving the fraud and draw vital compliance lessons for today’s professionals.
Key Highlights:
Overview of the Bre-X Mining Scandal
The Sensational Details of the Fraud
The Aftermath and Lack of Prosecution
Regulatory and Legal Responses
Compliance Lessons for Today
Resources:
Mike DeBernardis on LinkedIn
HughesHubbardReed
Tom Fox
Instagram
Facebook
YouTube
Twitter
LinkedIn
Texas Tax rate at 80% of 8.25%
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The Savings and Loan Crisis: A Deep Dive into Deregulation and its Consequences
What is stranger than fiction? The stories of worldwide corruption.
In this podcast series, co-hosts Tom Fox, the Voice of Compliance and Mike DeBernardis, partner at Hughes Hubbard, discuss some of the most audacious corruption cases in anti-corruption enforcement. More importantly, they will discuss the lessons learned on what your organization can do to prevent running afoul of international anti-bribery laws.
In this episode of Season 2, Tom and Mike take a deep dive into the Savings and Loan (S&L) crisis of the 1980s.
This scandal, which cost the U.S. between $150 and $200 billion, serves as a powerful case study on the consequences of deregulation. Factors like legislative changes, poor management, fraud, and economic pressures all contributed to the collapse of over a thousand S&Ls. Notable cases, such as the Lincoln Savings and Loan scandal involving Charles Keating, highlight the systemic issues that plagued the industry. The episode emphasizes the importance of regulatory oversight, ethical leadership, and strong internal controls to prevent future financial crises.
Key Highlights:
Overview of the SNL Crisis
Factors Leading to the Crisis
Major Scandals and Key Players
Lessons Learned and Regulatory Changes
Comparisons to Other Financial Crises
Resources:
Mike DeBernardis on Linkedin
HughesHubbardReed
Tom Fox
Instagram
Facebook
YouTube
Twitter
LinkedIn
Texas Tax rate at 80% of 8.25%
What is stranger than fiction? The stories of worldwide corruption. In this podcast series, co-hosts Tom Fox, the Voice of Compliance and Mike DeBernardis, partner at Hughes Hubbard will detail some of the most audacious corruption cases from the modern era of anti-corruption enforcement. More importantly, they will discuss the lessons learned on what your organization can do to prevent running afoul of international anti-bribery laws.
South Africa