Organizational Integrity Group Blog

Solving the Whole Problem™

Contrary to some expectations, the Trump Administration Department of Justice imposed record penalties under the U.S. Foreign Corrupt Practices Act from 2017 through 2020. But in each of those years, fewer and fewer new FCPA investigations were initiated. We expect the Biden Administration to continue the trend of increasing FCPA enforcement settlement values, while also increasing the pace of initiating new FCPA investigations. Anticorruption matters present some of the most severe threats to a company’s organizational integrity. Understanding the changing enforcement culture is an important component to addressing those threats.…
This article was originally published on IP Watchdog. An employee comes to you with a recipe for your competitor’s “secret sauce.” You know she worked for your competitor before coming to work for you.  How do you respond? It’s an important question, because it may go to the core integrity of your organization and because exploring this trade secret conundrum may offer some decision-making principles that businesses can apply when addressing other difficult decisions that they are being called to make in these stressful COVID-19 times. …
The University of Kentucky (“UK”) announced that it had fired all the coaches of its powerhouse cheerleading team on May 18, 2020 after a three-month internal investigations into allegations of hazing, public nudity, lewd chants, and alcohol use among team members over a number of years.  UK released an eight-page internal report by its Institutional Equity and Equal Opportunity office that probed, among other things, whether “the coaches . . . knew of or should have known” about misconduct by team members and concluded that the “weight of the information provided is sufficient to establish that the coaching staff were
In 1657, mathematician Blaise Pascal commented in a letter to his church leaders “I have made this longer than usual because I did not have time to make it shorter.” More than 100 years later, another Frenchman, Napoleon Bonaparte, offered a similar remark to his valet as he prepared to head out for battle. “Dress me slowly,” he said, “I’m in a hurry.” The irony of the quotations makes people smile, but few quibble with their underlying truthfulness. Often, the more in a hurry you are, the more you need to slow down.…
The COVID-19 pandemic has thrown us all into a crisis of uncertainty.  How does one stop a global pandemic?  How long will it take to bend the contagion curve?  How should the business community respond, to both the public health and financial challenges?  How we as a nation, as individuals, and as businesses respond to these challenges, will reveal and test our values.…
This spring, two major sports teams were caught cheating. Both are consistent championship contenders in recent years. In the United States, hardly any sports fan could have missed the report released by Major League Baseball concluding that the Houston Astros used cameras to steal signs from opposing pitchers, allowing Astros hitters to know what pitches were coming. The Astros exploited this scheme to win the World Series in 2017, reach the American League Championship in 2018, and reach the World Series again in 2019.[1]
I was sitting in my office last week thumbing through the latest issue of the Chronicle of Higher Education – the diary of news in the academe – and it hit me that story after story touched on what my colleagues and I call “organizational integrity.” Universities should increasingly focus on their integrity – their values, their culture, their own sense of right and wrong – as the bedrock of their organizational decision-making, risk management, and compliance. And, when their reputations are threatened,  universities should try to ground their response in those same values.…
In December 2019, an entire class of West Virginia prison guard trainees was reportedly fired for giving the Nazi salute in their graduation photo. The incident is not only a chilling display of a detestable symbol of genocide. It is also a crystal-clear example of the problem of the passive bystander. But modern training methods, based on current research on the science of bystandership, can help prevent such abuses before they occur. Such programs are being successfully adopted by law enforcement agencies and other organizations around the country.…
Synopsis The academic scandal that rocked the University of North Carolina from 2011 to 2014 epitomizes the need for decisive action to respond to circumstances that threaten an organization’s integrity. Failing to respond – or delaying such a response – can threaten an organization’s reputation for candor and transparency. Organizations must not react reflexively in these situations; rather, organizations must react in a way that bolsters or restores its integrity. And, where appropriate, organizations must accept responsibility, adopt and implement meaningful reforms, and transparently report what happened.…
On Monday, May 14, 2019, the Supreme Court issued a decision essentially expanding by four years the time available for private suits to be brought by relators under the False Claims Act (“FCA”), regardless of whether the Government decides to intervene. In Cochise Consultancy, Inc. v. United States ex rel. Hunt, No. 18-315, 2019 WL 2078086 (U.S. May 13, 2019), plaintiff-relator Billy Joe Hunt filed a complaint on November 27, 2013, alleging two defense contractors (collectively, “Cochise”) violated the FCA in 2006 and 2007 by submitting false claims for payment under a subcontract providing security services in Iraq. The…
Federal prosecutors announced yesterday the Government’s settlement with electronic health records (“EHR”) vendor Greenway Health, LLC (“Greenway”) of False Claims Act (“FCA”) allegations for a payment of $57.25 million and Greenway’s acceptance of a Corporate Integrity Agreement (“CIA”). The Government’s FCA complaint was filed by the U.S. Attorney’s Office for the District of Vermont, the same office that handled the May 2017 civil settlement with EHR company eClinicalWorks for $155 million. The Greenway settlement is the second largest civil settlement in the District of Vermont’s history, topped only by the eClinicalWorks settlement. The U.S. Attorney for Vermont, Christina Nolan, was…
The Department of Justice (DOJ) appears to be taking to heart the policy articulated in what has come to be called the Granston Memo, as it has recently sought dismissal of 11 False Claims Act (FCA) cases in various federal courts across the country, in part on the grounds that the allegations “lack sufficient merit.” The Granston Memo, issued in January of last year, encouraged DOJ attorneys to seek dismissal of qui tam FCA suits “to advance the government’s interests, preserve limited resources, and avoid adverse precedent.” The 11 suits of which DOJ seeks dismissal all share the same legal…
The Department of Justice (DOJ) recently released its annual statistical report on recoveries and new matters under the False Claims Act (FCA). The aggregate reported recovery of $2.8 billion for fiscal year (FY) 2018 is the lowest such total since FY 2009 and is 17% lower than last year’s total and less than half of FY 2014’s all-time high recovery of over $6.1 billion. As the table below shows, however, DOJ’s and private qui tam relators’ levels of enforcement activity on behalf of the Departments of Health and Human Services (HHS) and Defense (DOD) in FY 2018 remained consistent with…
The Department of Justice (DOJ) recently released its annual statistical report on recoveries and new matters under the False Claims Act (FCA). The aggregate reported recovery of $2.8 billion for fiscal year (FY) 2018 is the lowest such total since FY 2009 and is 17% lower than last year’s total and less than half of FY 2014’s all-time high recovery of over $6.1 billion. As the table below shows, however, DOJ’s and private qui tam relators’ levels of enforcement activity on behalf of the Departments of Health and Human Services (HHS) and Defense (DOD) in FY 2018 remained consistent with…
The United States District Court of the Eastern District of Pennsylvania recently issued a decision unsealing a False Claims Act case over the objections of the government, the relator and the defendant.[1] In United States ex. Rel. Brasher v. Pentec Health, Inc. No. 13-05745, 2018 WL 5003474 (E.D.P.A. Oct. 16, 2018), a case initially filed five years ago, the government filed a motion to continue the seal – which happened to be its eleventh such motion – arguing that additional time was necessary, in part, to finalize its decision whether to intervene in the action, as well as…
The False Claims Act’s statute of limitations is, easily, the most confusing portion of the False Claims Act. On November 16, the Supreme Court granted certiorari in case that has the potential to bring some clarity to the FCA’s statute of limitations. The FCA has two statute of limitations. Normally, a case must be brought within 6 years of “the date on which the violation of [the False Claims Act] is committed.” 31 U.S.C. § 3731(b)(1). The Act’s second statute of limitations provision allows for FCA cases to be brought “more than 3 years after the date when facts…