How To Develop a Corporate Compliance Program: Essential Elements: Guidance for Management and Concise Reference Material
By (author): Mr. Ernest C. Blount
Fact: Corporations, governmental units, labor unions, trusts, pension funds and nonprofits may be federally prosecuted if an employee is convicted of a federal crime; a crime committed in the course-and–scope of their employment? Learn how to mitigate the internal risk and how to mitigate federal sanctions. This Manual provides concise reference material, pragmatic insight, substance, structure and guidance for use in the development of an organizational crime-fraud-corruption prevention program; provided are many of the essential elements; content that may impact a federal judges’ evaluation of the effectiveness of a crime-fraud-corruption prevention program. The Manual may be used as a standalone resource for the development of a new crime-fraud-corruption prevention program or as a means to evaluate the content of an existing program. Like individual miscreants, organizations can be prosecuted; unlike individuals they can’t go to prison. Convicted organizations are subject to heavy fines, forced restitution, probation and forfeiture of property. An organization can literally be forced out of existence. The incentive: Develop a serious internal crime-fraud-corruption prevention program. But, an organization, despite its best efforts to prevent crime, fraud and corruption, may remain criminally liable. Organizationally, this risk is ever present. The conviction of an individual employee triggers United States Sentencing Guidelines for individuals. If the employer is convicted in connection therewith, Sentencing of Organizations, Chapter Eight, §8C2.5—Culpability Score is triggered. Sentencing Guidelines are used by federal judges in imposing sentences on individuals and organizations. For organizations Chapter Eight, §8C2.5—Culpability Score is critically important; this Section offers a way for a convicted organization to mitigate the intensity of court imposed sanctions; judges can award credits. These credits can be used to mitigate sanctions. The essential qualifier for earning credits is whether the miscreant organization has an effective crime-fraud-corruption prevention program in place. The provisions of Chapter Eight sets-forth the Seven Criteria used by a judge in evaluating the effectiveness of an organizations crime-fraud corruption prevention program. Those Seven Criteria establish the suitability for issuance of mitigation credits. Core evaluation Criteria is defined, but precise details for their design is not. Each organization must interpret the specified criteria and incorporate the necessary substance required to meet same and to do so as an integral part of their program. Those Seven Criteria are reviewed in this Manual. The noted Criteria is not mandated by law nor is a crime-fraud-corruption prevention program. But, given the risk of an employee acting out, and the potential negative consequences that can accrue, it seems prudent for an organization to protect stakeholder interests and to take those steps required to prevent, deter, detect, investigate, meet and or exceed compliance Criteria. Management needs this Manual, if for no other reason, then the How To educational content. Grab it while it’s available. Put it in your library. Have it when needed.
How To Develop A Corporate Compliance Program
Mr. Blount is a Law enforcement and corporate security professional. He has served as a municipal chief of police and chief security officer for a publicly held corporation. In the latter position as a direct report to the CEO, member of the insurance committee, and company representative at trials. He is a Certified Fraud Examiner with comprehensive criminal and civil investigative experience. He provides litigation support as a consulting and testifying expert. He is a graduate of Florida Atlantic University. Mr. Blount served with the 82nd Airborne and 77th Special Forces Group (Abn). The novel, Death Is A Window, is his first and he draws upon his experience as a homicide investigator with the Palm Beach County Sheriff's Department to tell the tale. He resides with his wife in Florida.