catelas deloitte fcpa webinar

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


The ProblemPanel Speakers

• Jeff Seymour, Principal, Analytic & Forensic Technology

Financial Advisory Services

• Eddie Cogan, CEO & founder of Catelas, Inc.


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.”


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


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


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










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


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


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


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


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


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


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


Thank You

Eddie Cogan617 407 [email protected]

Thank you

Jeff Seymour(718) [email protected] www.deloitte.com

mailto:[email protected]

http://www.catelas.com/

mailto:[email protected]

http://www.deloitte.com/

catelas deloitte fcpa webinar

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