Compliance & Governance

U.S. Attorney settles custom fraud case related to apparel made in China

The U.S. Justice Department and three apparel importers settled a customs fraud case that saw goods manufactured in China falsely labeled as made in Korea or Russia, and sold as such in the United States at Wal-Mart, JC Penney, Family Dollar Stores, Kohls and Marshalls stores.

The benefit to the subterfuge was that the importers—Intertex Apparel Group, J.J. Basics and Ben’s Clothing—could evade quotas on goods manufactured in China and dodge customs fees by under-valuing “the actual cost for those goods charged by the Chinese manufacturers,” according to the U.S. Attorney, Southern District of New York.

In separate move, Wachovia names independent chairman

A Rockefeller family initiative has picked up the backing of RiskMetrics Group’s ISS Governance Service, which is asking shareholders to back a resolution at the Exxon Mobil’s May 28 shareholder meeting to split the CEO/chairman role.

Closed-loop systems can help committees access sales figures, discuss mergers in secure environments

Although good governance is ultimately predicated on the ethics and expertise of board members, it is obvious to many directors today that there is a crucial role for technology. These directors reject the notion held in certain quarters a few years ago that technology is a panacea. Instead they subscribe to the more mature view that technology is an enabler—a key ingredient for a board environment that is radically different from the one only a few years ago.

As roles evolve, CROs become ‘stewards of strategic decisions’

Today’s companies are challenged to find socially responsible, sustainable ways of doing business that benefit their employees, communities and the environment—while simultaneously enriching their shareholders. And businesses across a variety of industries are proving that it can be done.

Executive support, planning and technology key to overhauling GRC design

Most economists are predicting a recession in the United States in the near future; some think we’re already in one. Concerns over energy prices, unrest in the Middle East, and even the current crisis in financial services all harken back to the late ’80s and early ’90s, which was the last time many believe we experienced a full recession. Coinci­dentally, there was also a Bush in the White House, a leading Democratic candidate named Clinton, and a new “Rambo” movie hitting theaters at that time. But while some interesting parallels between then and now may exist, there’s no question that the world has changed dramatically.

SEC website visitors can compare executive compensations with help of new computer language coding

Union coalition asks Merrill Lynch, Citigroup directors for explanations of their risk-assessment ‘failures’

A coalition of union pension funds isn’t ready to write off the billions of dollars in Merrill Lynch and Citigroup subprime mortgage-related write-downs as simply the cost of doing business in a turbulent lending market.

The CtW Investment Group called on four Merrill Lynch directors to divulge any steps they took to shield shareholders from the mortgage-related risk that led Merrill Lynch to write down more than $18 billion related to exposure to subprime mortgages and various mortgage-backed debt securities in the second half of 2007.

Survey finds large spending increase over last five years, but disproportionate allocation of funds

Banks spent an average of $83.54 million on compliance in 2006, an 87 percent increase from the $44.78 million average in 2002, with more growth expected in the coming years, according to Don Ogilvie, the Independent Chairman of the Deloitte Center for Banking Solutions.