Sex, Gambling and… Ice Cream?

credit Got Defense Attorney
credit Got Defense Attorney

People working for Department of Defense, both employees and contractors, have been found to be issuing Department issued credit cards to pay for gambling and “adult entertainment.” The Department spokesperson was quick to point out that that doesn’t mean the Department paid for the activity. The way things work there is that the cards are not directly billed to the Department, instead to the individual and then the individual fills out a form requesting a reimbursement from the Department. This could mean that the employees wanted to hide the activities from their spouses. (From UPI and Politico.)

If that wasn’t salacious enough for your… hahaha… excuse me, I couldn’t help myself. Benjamin Netanyahu, the Israeli Prime Minister was audited by his nation’s Comptroller and found lavish spending. Among the usual types of lavish spending was $2,500 a month on ice cream. That’s right. Ice cream. People have already begun to make fun of this in ways that are hilarious, even if you don’t understand Hebrew.

credit Calcalist
credit Calcalist
credit Israelly Cool
credit Israelly Cool
credit International Business Times
credit International Business Times
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Compliance by death

Global Suicide Rate Map from Business Insider
Global Suicide Rate Map from Business Insider

South Korea has a very high suicide rate. It is second only to Lithuania. (Temporarily Greenland unseated Lithuania with the highest per capita suicide rate, but traditionally it has been Lithuania and South Korea.) South Korea’s suicide rate is more than double the rate in the United States. South Korean culture put a high price on one’s reputation. Once tarnished, the chance of recovery is slim. The work around is death. Forget about wrongdoing, death is the ultimate sacrifice one is willing to make to save his/her family from shame and is traditionally a sign of innocence. Innocence because only the innocent would find it unbearable to subject innocent family members to a tarnished reputation.

A construction executive, Sung Wanjung, had created a “bribery list.” As it sounds, it is a list of bribes he would pay to make his business more successful. He had accidentally left a printed copy of it somewhere and it was discovered. On the list were many of the President’s advisers and aides. The executive was on trial and facing imprisonment. Prison’s in South Korea are not nearly as nice as those in the States. So, he killed himself.

As the story implies, he killed himself out of guilt, not out of innocence. This has been the theme of suicides among politicians and the people in their circles. Former president of South Korea, Roh Moohyun, also killed himself when he was charged with taking bribes and embezzling. He was mourned. But right up until the news of his suicide was reported, most Koreans believed him to be guilty. Even if he was cleared of any wrongdoing, the Korean culture would have made him an outcast.

In South Korea, compliance, it seems, would have to take an extra care to prevent crimes from growing so that the result isn’t suicide.

Jang Jayeon

To prove that innocent suicides are common, or as common as they can be among suicides, a string of entertainers have killed themselves over the past twenty years due to pressures put on them by their management companies. It often happens when expectations for their success gets too high. One rising actress, Jang Jayeon, killed herself because the price she had to continue paying to get roles. She had to sleep with directors and financial backers to keep getting roles. She was a good actress, but with such fierce competition, she found the only way to get roles was to use her body. Victims of other crimes is what often leads to crime-inducing suicide, or, in the case of Jang, directly to suicide.

Sung’s death cannot be compared to Jang’s. Jang was a victim of systemic prostitution. Sung’s was likely a victim of his own guilt.

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One bit of business: I’m actively seeking contributors. If you or someone you know is a professional with at least ten years of experience in financial services with knowledge or opinions about regulation, I would like to invite you to be a guest author.


About the Author: Marcus Maltempo is a compliance professional with more than a decade of experience helping banks, law firms and clients manage investigations and regulatory responses.


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Cyber Attacks Compromising Credentials

731px-US-FFIEC-Logo.svgOn Monday, the Federal Financial Institutions Examination Council (FFIEC) released a statement warning and advising financial institutions about hacking and phishing that is leading to stealing credentials to bank accounts, credit card accounts and other financial accounts. This is an issue that has been around a while but the advice has generally been going to consumers. This message was to institutions. There was a special note for community banks. Rightfully so since community banks tend to have less resources available to protect themselves from these attempts. The attempts are not being made to the institutions, but it is still in their interest to protect their customers as best as they can. Detecting fraudulent transactions early will mitigate risks, reduce liabilities and keep insurance premiums down.

The highlights can be found HERE and the full statement can be found HERE.


About the Author: Marcus Maltempo is a compliance professional with more than a decade of experience helping banks, law firms and clients manage investigations and regulatory responses.


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Kleptocracy is a system setup to benefit a select group of people over a whole population

Kleptocracy is a system that benefits a few over the population as a whole. It is a term usually used for governments but it can be used for corporations.

from Hunger Games
from Hunger Games

Russia would be a well known kleptocracy. Russian people pay taxes and the tax revenue is used on projects that hire corporations whose executives are supporters of Vladimir Putin. Not only are Putin’s supporters winning contracts over non-supporters even when qualifications and price would support the non-supporters over a supporter, but also the executives are spending the funds in such a way so that it benefits them directly. These executives are using these funds to build themselves houses and buy expensive things. recently, a few government ministers have been found to own recently built expensive mansions, which does not make sure considering their background of having no money and their positions not affording them such funds. This is another direct kleptocratic method.

It is a little more difficult to use it for corporations. The use of corporate funds for direct personal gain would be fraud and embezzlement, but if it is systemic, it would be kleptocracy.


About the Author: Marcus Maltempo is a compliance professional with more than a decade of experience helping banks, law firms and clients manage investigations and regulatory responses.


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