OTC Business Crime & Regulation Team collaborate with EY to Present a Webinar Series on Corporate Compliance and Internal Investigations

Alongisde colleagues at Outer Temple Chambers and in collaboration with EY, Nick appeared as a panellist at the second in a series of webinars which aimed to pool diverse expertise on the topics of corporate compliance policies and internal investigations. Nick provided a legal perspective on the likely individual corporate and individual criminal charges and if and when to make disclosures to authorities with a view to negotiating an effective corporate settlement.

The webinar in which Nick appeared has been uploaded to Youtube and can be viewed here. It focused upon the following hypothetical scenario:

 

·      Cambridge Global is headquartered in the UK and specialises in the manufacture of protection equipment, including PPE for global pandemics. In 2018, it acquired a US competitor, Miami PPE Inc.

 

·      Soon after the acquisition, Cambridge became aware that Miami had an exclusive distribution agreement in Nigeria with Lagos Protection. Miami would also transfer 35% of net invoiced sales by LP into an Isle of Man bank account. LP’s boss, Dan Covid, apparently used the money in the account for what he called ‘special payments’ and ‘prof ed’, said to be standard practice in a number of emerging markets and essential in maintaining relationships with senior managers, who influenced hospitals and other institutions in their purchases PPE.

 

·      Rather than cut its ties with LP and Mr Covid, in 2019 Cambridge senior management decided to instruct a commercial and financial director, both ex-Miami employees, to go to Nigeria to negotiate and structure the purchase of the distributor LP and to retain Mr Covid as a consultant for 3 years. The new Nigerian distribution arm is called Cambridge LP.

 

·      Within a few months, Reggie Right, a Cambridge employee, reports internally that Mr Covid is still bribing purchasing managers.