Philadelphia partner Mary Hansen was quoted in Compliance Week in an article titled, “Throwing Books & Records at ‘Em.” The article discussed the implications of the Securities and Exchange Commission’s recent proceeding against a North Carolina telecom company, which indicates that compliance officers responsible for accurate books and records and effective internal control over financial reporting may be facing a brave new world of regulatory enforcement.
Mary commented on what’s to come in the future. She believes that the SEC will pursue fraudulent schemes, “even where an individual did not act intentionally or even recklessly.”
“When you look at [the FCPA] cases, they are not all bribery cases,” Mary says. “A lot of them are books-and-records violations. This is a pot of gold for the SEC. The threat is that not only are they going to charge you with these rule violations; they are going to bring it in an administrative proceeding, so good luck defending yourself.”