Tag Archives: Natalie Noble

Accountability and Enforcement Under the CARES Act: What to Expect from the Act’s Oversight Provisions

by Joon H. Kim, Jonathan S. Kolodner, Elizabeth Vicens, and Natalie Noble

On Friday, March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (PDF: 472 KB) (“CARES Act”) became law, marking the third phase of government aid to combat the COVID-19 pandemic. This $2 trillion stimulus package, the largest in American history, will be accessed by wide swaths of the economy, with similarly widespread potential for fraud. Consequently, the accountability and oversight provisions built into the CARES Act, especially of the $500 billion corporate relief fund, warrants attention. Taking its cue from—and seemingly modeled after—the 2008 Troubled Asset Relief Program (“TARP”), the CARES Act establishes a three-part oversight structure, including a Special Inspector General for Pandemic Recovery (“SIGPR”) with far-reaching authority to monitor the $500 billion fund. Based on the experience with TARP oversight and the enforcement actions taken by the Special Inspector General of TARP (“SIGTARP”) over the years, we can expect a high level of scrutiny by SIGPR and the other overseers, as well as potentially years of investigations into fraud and misuse of CARES Act funds resulting in substantial monetary penalties and criminal referrals. Continue reading →

Techniques for Reinforcing a Culture of Compliance

by Natalie Noble

The importance of establishing a robust “culture of compliance” within corporations is a common refrain among government regulators.[1] But developing a structured process, much less a firm definition, around such a squishy concept can be a daunting task for compliance officers. At its core, an effective culture of compliance should shape employees’ gut instincts by reinforcing values that weigh against breaking the law. To accomplish this, companies should supplement their traditional ethics trainings and “tone at the top” by integrating compliance factors into their incentives programs and forestalling ethical fading. As an additional line of defense, companies should actively encourage employees to slow down and think methodically about their decisions before they take final action. Continue reading →