Another CCO Liability Proposal

cco liability

The National Society of Compliance Professionals, which represents compliance officers specifically in the financial services world, has released a proposed framework to help regulators understand the threat of chief compliance officer liability and when such liability is or isn’t warranted for a compliance failure. The NSCP released its framework on Monday: a series of nine…

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Goldman Compliance Officer Busted on Insider Trading

cco liability

A senior compliance analyst at Goldman Sachs has been charged with insider trading by the SEC, which says the man racked up more than $470,000 ill-gotten profits by trading in brokerage accounts held under his parents’ names.  The man, Jose Luis Casero Sanchez, worked in the control room of Goldman’s offices in Warsaw, Poland, from…

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Proposed: Framework for CCO Liability

cco liability

The New York City Bar Association has proposed a framework that the Securities & Exchange Commission should follow when deciding whether to charge a chief compliance officer for compliance failures at his or her firm.  The framework, announced to the world on Wednesday, addresses points such as when a CCO should be charged for “wholesale…

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Cruise Lines Face Covid-19 Compliance Squeeze

cruise

Royal Caribbean International has agreed to an exhausting set of criteria from the Centers for Disease Control so the cruise line can evacuate its employees from ships stuck at sea — including the risk of civil and criminal penalties for senior executives should Royal Caribbean bungle the task. That certainly takes the importance of running…

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Report Urges Action on CCO Liability

cco liability

The New York City Bar Association released a report on Tuesday warning that compliance officer liability continues to be a worrisome part of regulatory enforcement, and called for more guidance about when a compliance officer’s conduct can leave him or her in regulators’ crosshairs. The report focused on compliance officers working in financial services firms,…

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Feds: SEC Staffer Stole Data to Land CCO Role

cco liability

Oh good lord: Federal prosecutors have indicted a former SEC enforcement attorney with stealing information from the agency while he worked there — so he could set himself up as chief compliance officer of a private equity firm under SEC investigation. Michael Cohn, chief compliance officer of GPB Capital Holdings, was charged in federal court…

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NJ Transit ex-CCO Files Whistleblower Case

NJ Transit

The former chief compliance officer at New Jersey Transit filed a federal whistleblower complaint against the agency last week, the latest twist in a drama that has irritated New Jersey commuters for months. The ex-compliance officer, Todd Barretta, filed his complaint with OSHA on Jan. 10, claiming whistleblower status under the Federal Rail Safety Act.…

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At What Cost Dishonesty? For VW Exec, Seven Years

VW

Last week a federal judge in Michigan sentenced Volkswagen’s former head of environmental compliance in the United States, Oliver Schmidt, to seven years in prison for his role in VW’s emissions cheating scandal. That’s a tough sentence for a compliance officer. And Schmidt deserved every day of it. As far as the compliance community should…

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Compliance Officer Liability: Three Tales

cco liability

Good lord, compliance community, what happened to us last week? After years as a relatively calm, staid profession, we had three reports of compliance officers accused of misconduct. All are head-scratchers that require more detail, and I suspect we’ll be following them in the future. The coincidental timing of them, however, is nothing short of…

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Ack! CCO Liability Is Back Again!

cco liability

Loyal readers of Radical Compliance know that I don’t give much credit to fears of CCO liability for compliance failures. Outside the financial services sector, the risks to a compliance officer are virtually zero, unless you’re grossly negligent or complicit in the misconduct. Within the financial services world, compliance officers do have more worry—and then…

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