Throughout the week over at Securities Docket, I highlight the most interesting columns and blog posts from around the web on the subjects of SEC enforcement and securities litigation. Here is a digest of my picks for the week ending August 13:

Be the Mayor, not the Sheriff

Compliance Building | Doug Cornelius | Aug 13, 2010

The primary function of compliance should be educating the employees about the rules. You should evaluate rules that are causing problems and see if there is a better way to deal with the issue. You should look for weaknesses in the company’s operations and policies so you can improve them. Be the mayor. Wear a sash instead of a badge.

Messy Divorce Leads to Whistleblower Bounty in Pequot Capital Case

The Connecticut Law Tribune | Douglas S. Malan | Aug 13, 2010

Karen Kaiser made headlines last month when the federal government gave her a $1 million whistleblower bounty for finding evidence allegedly implicating her ex-husband and his former employer, the Westport, Conn.-based Pequot Capital Management Inc. But less has been written about the emotionally charged child custody battle that led to the discovery of computer files, the continuing investigation by the SEC and the two attorneys who aided Kaiser.

How Can You Tell If A CEO Is Lying?

WSJ Deal Journal | Kyle Strock | Aug 13, 2010

Conference call Q&As are a confusing and cryptic dance. Executives try to be attractive to investors, without giving away too much. In many cases, they are trying to put a good spin on bad results. But what if an investor could read right through all of the posturing and careful prose to know if they were being strung along? A pair of professors at Stanford recently built a model that tries to do just that.

FCPA Training: How to "Resist" a Solicitation for a Bribe

FCPA Compliance and Ethics Blog | Thomas Fox | Aug 13, 2010

At most FCPA compliance and ethics training sessions there is usually one or more archetypal story about “someone I know” who was solicited to pay a bribe or “I heard about someone” from whom a bribe was solicited. Sometimes this solicitation story can be better described as extortion. One question for the FCPA compliance trainer is how to handle such questions and is there an authoritative source to fall back upon for answering such questions?

Guilty but Not Liable: Does Section 10(b) Require Revision?

The Legal Intelligencer | Stephen G. Stroup | Aug 13, 2010

How can a corporate attorney convicted and imprisoned for participating in a multibillion-dollar securities fraud scheme subsequently obtain a motion to dismiss in a Section 10(b) securities fraud class action based on the very same conduct?

Applying the Supreme Court’s Limits to “Foreign Squared” Litigation

Harvard Law School Forum on Corp. Gov. | George T. Conway III | Aug 10, 2010

In the first significant opinion applying the Supreme Court’s decision in Morrison v. National Australia Bank Ltd., the U.S. District Court for the Southern District of New York ruled yesterday that Section 10(b) of the '34 Act and SEC Rule 10b-5 do not apply to “foreign squared” claims — claims asserted by American investors who have purchased securities of foreign issuers on foreign exchanges.