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 January 14:

Corporate Liability for Insider Trading

DealBook | Peter Henning | Jan 13, 2011

Firms that trade on inside information have been accused of securities fraud based on the conduct of their employees. For example, this week the Securities and Exchange Commission filed civil charges against Trivium Capital Management, its co-founder and an analyst for trading on information provided by Roomy Khan, who is also a witness against the Galleon Group's founder, Raj Rajaratnam. Insider trading cases tend to focus more on the recipient of the information than its source because that is who made the money off the improper disclosure. Charges against a firm for organizing a program to dispense inside information has not been seen before, but Mr. Nguyen's plea agreement indicates that prosecutors may now view Primary Global as the hub of the case.

Plaintiffs' Lawyers Pursue Non-U.S. Securities Litigation Alternatives After Morrison

The D&O Diary | Kevin LaCroix | Jan 11, 2011

Now that investors who purchased shares on foreign exchanges can no longer seek damages in U.S. courts under the U.S. securities laws, these same investors may find the remedies available in other countries more attractive. There is no doubt that this recently filed Fortis action is a first step in that direction – perhaps the first of many.

Plan Now or Pay Later: The Role of Compliance in Criminal Cases

White Paper | Charlotte Simon, Ryan McConnell, Jay Martin | Jan 12, 2011

The DOJ's focus on compliance has forced both U.S. and foreign companies that access U.S. capital markets to reevaluate their approaches toward compliance. Companies have begun to reassess, formalize, and improve what have historically been only informal or general codes of conduct. Faced with the reality that compliance is both a key federal charging consideration and a determinative factor in sentencing, companies today must ensure that their compliance programs contain carefully crafted policies and procedures tailored to minimize the risk of civil and criminal liability.

SEC Enforcement of the FCPA - 2010 Year in Review

FCPA Professor | Mike Koehler | Jan 11, 2011

FCPA enforcement, it is not just about the DOJ. Granted, its sticks are less sharp than the DOJ's, but the SEC also claims a significant piece of the FCPA enforcement pie (query whether it should - but that is a subject for another day). For an enforcement agency that, for a long time, did not want any part in enforcing the FCPA's anti-bribery provisions (more on that in the future as well), the SEC in 2010 brought in $529,967,294 in corporate FCPA settlements.

Is Your FCPA Compliance Program a Good Business Model?

FCPA Compliance and Ethics Blog | Thomas Fox | Jan 10, 2011

For the FCPA practitioner, the authors of an article entitled “How to Design a Winning Business Model” list three characteristics of an effective business model. They note that a good business model will meet all three of the following, 1) Is your business model aligned with company goals?; 2) Is your business model self-reinforcing?; and 3) Is your business model robust? These characteristics are easily translated into the compliance world and can be used by the compliance practitioner in evaluating a company FCPA compliance program.