SCCE Government Compliance Conference

The Society for Corporate Compliaince and Ethics is holding this Government Compliance Conference in June.

I had the following emailings:

From: RDShatt@aol.com
To: roy.snell@corporatecompliance.org
Sent: 2/20/2013 2:18:12 P.M. Central Standard Time
Subj: Various- access to Compliance and Ethics Professional
Dear Mr. Snell,
I am a layperson with an interest in ethics and compliance.
I only recently became aware of the SCCE journal Compliance and Ethics Professional by finding this March/April 2012 issue on the Internet. I am very interested in seeing what articles are in current issues of the journal. Is there any free access to current issues of the journal? If so, how may I get that free access? If there is not free access available to me, how much would it cost for me to have access?
There are two articles I would be interested in writing and submitting to Compliance and Ethics Professional for consideration for publication by the journal. I will indicate these in a subsequent email or emails.
Thank you for your attention to this inquiry about access to Compliance and Ethics Professional.
Sincerely,
Rob Shattuck

From: Roy.Snell@corporatecompliance.org
To: RDShatt@aol.com
Sent: 2/21/2013 10:20:10 A.M. Central Standard Time
Subj: Re: Various- access to Compliance and Ethics Professional
Thanks for your interest. The magazine is available to members. Membership is $295. Ashlee would be able to answer any other questions related to this.
Roy

From: RDShatt@aol.com
To: roy.snell@corporatecompliance.org
Sent: 2/20/2013 2:41:33 P.M. Central Standard Time
Subj: First possible article-- actual corporate practices re: FSGO Sec. 8B2.1(b)(6)
Dear Mr. Snell,
The first possible article I would like to write and submit for publication in Compliance and Ethics Professional regards actual corporate practices that have been taken in response to the provision of FSGO Sec. 8B2.1(b)(6) that refers to a corporation's program "being enforced consistently throughout the organization through . . . (B) appropriate disciplinary measures for engaging in criminal conduct and for failing to take reasonable steps to prevent or detect criminal conduct".
As the below email (including the link that is set forth) indicates, this is an investigation I have initiated.
This possible article is dependent on what I find that has already been written on the subject.
Sincerely,
Rob Shattuck

From: RDShatt@aol.com
To: roy.snell@corporatecompliance.org
Sent: 2/20/2013 3:28:49 P.M. Central Standard Time
Subj: Second possible article-- how civil lawsuits interact with ethics and compliance
Dear Mr. Snell,
I have spent several years trying to persuade the ethics and compliance community that more attention should be paid to certain phenomena connected with private civil litigation. I have by and large been ignored about this, but I think I am getting to the point where silence on the part of the community will cease to be tenable, and some in the community will have to state a position about whether or not this subject has any importance relative to the ethics and compliance mission of the community.
If positions are forced to be taken by the ethics and compliance community, my second possible article for Compliance and Ethics Professional would be lay out the subject and report what positions are being taken in the community and the rationales for the positions.
For some background, see my article Does the civil liability system undermine business ethics? and these recent emails I have sent to members of the panel that authored the Ethics Resource Center's "The Federal Sentencing Guidelines For Organizations Twenty Years Later". (There is a lot more background I can provide, but the foregoing should be sufficient for Compliance and Ethics Professional to decide whether it has any interest in this second proposed article of mine.)
If my proposed articles need to be passed along to an editor of the journal for consideration, I hope you will kindly forward my emails to such editor or otherwise refer me to the editor.
Thank you.
Sincerely,
Rob Shattuck

From: Roy.Snell@corporatecompliance.org
To: RDShatt@aol.com
Sent: 2/21/2013 10:44:14 A.M. Central Standard Time
Subj: RE: Second possible article-- how civil lawsuits interact with ethics and compliance
Rob
I appreciate your interest however we have already had several articles on this subject and I am afraid we are going to have to pass.
Roy

From: RDShatt@aol.com
To: Roy.Snell@corporatecompliance.org
Sent: 2/22/2013 8:39:36 A.M. Central Standard Time
Subj: Re: Second possible article-- how civil lawsuits interact with ethics and com..
Thanks Roy. Needless to say, I am very much interested in reading the articles and learning who the authors are who wrote them. I won't pay the $295 today to gain access. I have some emails I have drafted to send to the June conference speakers (including yourself). Maybe that will help me learn more about who is writing and saying what.
Sincerely,
Rob

From: RDShatt@aol.com
To: roy.snell@corporatecompliance.org, paul.mcnulty@bakermckenzie.com, jemurphy@voicenet.com
Sent: 2/22/2013 8:49:50 A.M. Central Standard Time
Subj: "What Are the Essential Elements of an Effective Compliance Program?"
Dear Mr. Snell, Mr. McNulty and Mr. Murphy,
Your above titled presentation that is scheduled for June 10, 2013 at the SCCE Government Compliance Conference squarely raises for me the question of what actual procedures and practices does a corporation need to have in place under the provision of FSGO Sec. 8B2.1(b)(6) that refers to a corporation's program "being enforced consistently throughout the organization through . . . (B) appropriate disciplinary measures for engaging in criminal conduct and for failing to take reasonable steps to prevent or detect criminal conduct".
Are such actual procedures and practices under FSGO Sec. 8B2.1(b)(6) one of the "essential elements of an effective compliance program"? Can you refer me to any written materials that provide information about such practices and procedures, and cases of disciplinary measures that have been actually taken, by corporations.
Mr. Snell and Mr. McNulty recently received emails from me indicating my interest in the above questions. I am only a layperson and not a member of the SCCE and do not expect to attend the June conference. I nevertheless hope I am able to obtain some answers to my questions.
Thank you.
Sincerely,
Rob Shattuck

From: RDShatt@aol.com
To: patrick.gnazzo@gmail.com, corporate.ethics@lmco.com
Sent: 2/22/2013 9:02:23 A.M. Central Standard Time
Subj: "Getting Us All on the Same Page"
By email
Mr. Pat Gnazzo
Better Business Processes, LLC
Mr. Leo S. Mackay
Corporate Vice President and Elected Officer
Lockheed Martin
By US mail [mailed 2/26/13]
Mr. Denis McInerney
Chief, Fraud Section, Criminal Division
U.S. Department of Justice
950 Pennsylvania Avenue, NW
Washington, DC 20530-0001
Mr. Stephen L. Cohen,
Associate Director, Division of Enforcement
Securities and Exchange Commission
100 F Street, NE
Washington, DC 20549
Dear Mr. Gnazzo, Mr. McInerney, Mr. Cohen and Mr. Mackay,
Your above titled "roundtable" of compliance officers and the enforcement community that is scheduled for June 10, 2013 at the SCCE Government Compliance Conference squarely raises for me a question that I have endeavored to raise with the panel that authored the Ethics Resource Center 2012 report The Federal Sentencing Guidelines for Organizations at Twenty Years
More particularly, as discussed in these Comments for FSGO panel that I have prepared and posted, I say. that there is a lack of interest of the FSGO Report proponents in holding accountable individual officers and employees who have played a culpable role in corporate wrongdoing, and that this lack of interest may cause the Report to lose credibility with the Justice Department and others on the governmental side.
The foregoing assertion, if it is true, would seem to have clearing bearing on your roundtable topic of "getting us all on the same page."
I am only a layperson and not a member of the SCCE and do not expect to attend the June conference. I nevertheless hope I able to obtain some reaction to this inquiry.
Thank you.
Sincerely,
Rob Shattuck

From: RDShatt@aol.com
To: mdoyle@aegis-compliance.com
Sent: 2/22/2013 9:29:12 A.M. Central Standard Time
Subj: "Compliance Programs: The Government’s Role"
[Ms. Doyle: I am unable to find an email address for Ms. Desio and Professional Ethics LLC. If you could forward this email to Ms. Desio, I would be most appreciative.]
Dear Ms. Doyle and Ms. Desio,
Your above titled presentation that is scheduled for June 10, 2013 at the SCCE Government Compliance Conference prompts me to make an observation that comes out in these Comments for FSGO panel that I have prepared and posted for the panel that authored the Ethics Resource Center 2012 report The Federal Sentencing Guidelines for Organizations at Twenty Years
What should come across in those comments is that the Report does a great deal of pressing for the government to do things to encourage corporation's to have ECEP's, but there is a two way street that the Report proponents do not seem to be interested in exploring. More particularly, I say there is a lack of interest of the FSGO Report proponents in holding accountable individual officers and employees who have played a culpable role in corporate wrongdoing, the government side may consider individual accountability more important, and that the lesser or non-existent interest of the Report proponents may cause the Report to lose credibility with the Justice Department and others on the governmental side.
Just an observation for your consideration.
Thank you.
Sincerely,
Rob Shattuck

From: RDShatt@aol.com
To: roy.snell@corporatecompliance.org
Sent: 2/22/2013 10:07:52 A.M. Central Standard Time
Subj: "Paper or Performing: Assessing a Compliance Program"
[Roy: I cannot find Mr. Guyton listed on the Meade, Roach website (where the brochure says he is a partner), and I am unable to find an email address for Mr. Jacobson. If you could forward this email to Mr. Guyton and/or Mr. Jacobson, I would be most appreciative. If not, that's ok too. Thanks. Rob Shattuck]
Billy Jacobson, Senior VP, Co-General Counsel,
Chief Compliance Officer, Weatherford International
Odell Guyton, Partner,
Meade, Roach & Annulis, LLP
Dear Mr. Jacobson and Mr. Guyton,
Your above titled presentation that is scheduled for June 10, 2013 at the SCCE Government Compliance Conference raises for me a question that I have endeavored to raise with the panel that authored the Ethics Resource Center 2012 report The Federal Sentencing Guidelines for Organizations at Twenty Years
FSGO Sec. 8B2.1(b)(6) refers to a corporation's program "being enforced consistently throughout the organization through . . . (B) appropriate disciplinary measures for engaging in criminal conduct and for failing to take reasonable steps to prevent or detect criminal conduct". More particularly, as discussed in these Comments for FSGO panel that I have prepared and posted, I say there seems to be a lack of interest of the FSGO Report proponents in corporations actually holding accountable individual officers and employees who have played a culpable role in corporate wrongdoing, and that the above provision of Sec. 8B2.1(b)(6) may be window dressing.
In this regard, I note that one of the bullet points for your presentation in the SCCE brochure is "Does the program ignore key elements, like incentives and auditing to detect actual violations?" I don't see a reference to "disciplinary measures" in the bullet points. What should be inferred from that?
I am only a layperson and not a member of the SCCE and do not expect to attend the June conference. I nevertheless hope I am able to obtain some reaction to what I say in this email.
Thank you.
Sincerely,
Rob Shattuck


From: jemurphy@voicenet.com
To: RDShatt@aol.com
Sent: 2/23/2013 11:42:35 A.M. Central Standard Time
Subj: Re: "What Are the Essential Elements of an Effective Compliance Program?"
Hi, Rob - Yes, discipline is part of the USSGs core elements. I have actually written an article in ethikos a few years ago that covered this. I've attached a draft copy of the article. Cheers, Joe

From: RDShatt@aol.com
To: jemurphy@voicenet.com
CC: paul.mcnulty@bakermckenzie.com, roy.snell@corporatecompliance.org, KDarcy@theecoa.org, pat@ethics.org
Sent: 2/24/2013 9:40:06 A.M. Central Standard Time
Subj: Re: "What Are the Essential Elements of an Effective Compliance Program?"
Thanks so much for replying to me, Joe, and especially thanks for sending me your article.
I note how your article says at the outset, "if one attends conferences on compliance and business ethics or scans the publications in these fields, this subject [discipline] appears to be distinctly unpopular."
Your article well articulates what a thicket the matter of discipline potentially presents, so much of a thicket I suspect that actual practices and procedures and actual discipline under FSGO Sec. 8B2.1(b)(6) are probably woefully sparse, if not non-existent.
When I saw in the 2012 FSGO Report of the Ethics Resource Center that the input solicited for the Report included presentation and discussion of the report outline with 500 ethics/compliance professionals at plenary conference session and also two online surveys to over 10,000 ethics and compliance professionals "to gather input on the specific language of FSGO and areas that are in need of clarification," I wrote Dr. Harned this email asking whether the ERC collected and evaluated information about the actual use of discipline under Sec. 8B2.1(b)(6). I did not receive any reply from Dr. Harned, so I don't know whether or not "discipline" under Sec. 8B2.1(b)(6) has much substance in the mind of the ERC.
The $25 billion settlement that was made in 2012 by Ally Financial, JPMorgan Chase, Wells Fargo, Citigroup, and Bank of America regarding the alleged mortgage-servicing and home-foreclosure abuses stemming from the so-called "robo-signing" practices got my interest related to Sec. 8B2.1(b)(6) and a HUD report about the pressures that were put on bank foreclosure workers (as reported in this Wall Street Journal article). I sent these emails to state attorneys general, the Department of Justice, the Conference of State Bank Supervisors, the American Association of Residential Mortgage Regulators, and the Mortgage Bankers Association but got no indication that disciplinary measures could be expected to be taken by the banks.
What do you think is the likelihood that disciplinary measures will be taken by Costco in the recent Costco/Tffany fake rings matter?
Joe, I think the ethics and compliance community is in need of soul searching about whether "discipline" under Sec. 8B2.1(b)(6) is basically empty because of a very tangled thicket presented by "discipline", whether that thicket can be cut through, and the implications and ramifications for the mission of the compliance and ethics community if the thicket cannot be cut through.
Again, I very much appreciate your sending me your article, and I will be looking for any other relevant articles that are in the literature.
I am copying the ERC and ECOA on this email for obvious reasons, as well as your co-presenters.
Sincerely,
Rob Shattuck

From: RDShatt@aol.com
To: roy.snell@corporatecompliance.org, paul.mcnulty@bakermckenzie.com, patrick.gnazzo@gmail.com, mdoyle@aegis-compliance.com, corporate.ethics@lmco.com
Sent: 5/2/2013 8:21:59 A.M. Central Daylight Time
Subj: SCCE Government Compliance Conference June 10, 2013
Via email to above addressees
Via U.S. Mail to below persons
Mr. Denis McInerney
Chief, Fraud Section, Criminal Division
U.S. Department of Justice
950 Pennsylvania Avenue, NW
Washington, DC 20530-0001
Mr. Stephen L. Cohen
Associate Director, Division of Enforcement
Securities and Exchange Commission
100 F Street, NE
Washington, DC 20549
Re: SCCE Government Compliance Conference June 10, 2013
Dear Government Compliance Conference speakers,
In February I emailed (or mailed) you concerning your upcoming conference, which communications are set out in my blog at http://robertshattuck.blogspot.com/2013/02/scce-government-compliance-conference.html. I very much appreciate the reply that Joe Murphy gave to me, but I did not hear from anyone else. I do not expect to attend the conference. If there is anything you will say in your presentations at the conference that address the subject of entity level liability versus individual officer and employee liability for purposes of deterringr corporate wrongdoing, I would very much like to publish the same in my blog. If you are willing, please send me a transcript of what I might publish.
Thank you.
Sincerely,
Rob Shattuck
Birmingham, AL



From: RDShatt@aol.com
To: roy.snell@corporatecompliance.org, paul.mcnulty@bakermckenzie.com, patrick.gnazzo@gmail.com, mdoyle@aegis-compliance.com, corporate.ethics@lmco.com, jemurphy@voicenet.com
CC: rryan@kslaw.com
Sent: 6/3/2013 3:30:58 A.M. Central Daylight Time
Subj: 5/21/13 WSJ op/ed piece "Why the SEC Needs 'No-Admit' Settlements"
Via email to above addressees
Via U.S. Mail to below persons

Mr. Denis McInerney

Chief, Fraud Section, Criminal Division

U.S. Department of Justice

950 Pennsylvania Avenue, NW
Washington, DC 20530-0001

Mr. Stephen L. Cohen

Associate Director, Division of Enforcement

Securities and Exchange Commission

100 F Street, NE
Washington, DC 20549

Re: SCCE Government Compliance Conference June 10, 2013

Dear Government Compliance Conference speakers,

In follow up to my prior emails to you, it seems appropriate to mention Russell G. Ryan's op/ed piece "Why the SEC Needs 'No-Admit' Settlements," which appeared in the May 21/22 Wall Street Journal (and which I have copied and pasted in my blog here).

The ongoing issue of whether or not society's formal legal machinery will or will not yield unambiguous determinations of what constitutes or does not constitute wrongdoing by corporations should, it seems to me, be troublesome for those in the business ethics and compliance domain. If the formal legal machinery does not make those determinations, what basis does there exist for agreement about what actions by officers and employees of the corporation are wrongful and are not to be engaged in?

Further, if the formal legal machinery does not yield determinations that something is wrongful, how does that affect, for example, the imposition by corporations of "discipline" on individual officers and employees under Sec. 8B2.1(b)(6) of the Federal Sentencing Guidelines for Organizations?

I do not expect to attend the June 10 conference, and I renew my solicitation that, if there is anything you will say in your presentations at the conference that address these matters I have been emailing you about (the subject of entity level liability versus individual officer and employee liability for purposes of deterring corporate wrongdoing, and whether the formal legal machinery makes unambiguous determinations about what constitutes or does not constitute corporate wrongdoing), I would very much like to publish the same in my blog. If you are willing, please send me a transcript of what I might publish.

Thank you.

Sincerely,

Rob Shattuck

Birmingham, AL