The experts have spoken and the Astros are a 75-1 long
shot to win the World Series. But that is just what the experts predict and as
we are 3 weeks away from pitchers and catchers reporting for Spring Training I
prefer to take the pink cloud approach, that at least as of now, the Astros
have as good a chance as any team to make it to the Fall Classic. Of course, in
the 50+ years of professional baseball in Houston, the Astros (and their
predecessor Colt 45s) have made it that far only once. But at least it happened
in my lifetime...
All of which brings us to this posting's topic, Catelas software. In my transaction lawyer life,
I do work for some medium to small software companies, which license software
generally related to the energy industry. One of the best pitches you can make
about a software product is along the lines of the following, "I have this
software which can do some really cool stuff." I recently saw a demonstration
of Catelas software and came away thinking, this is some really cool stuff. But
even more than such platitudes, the software allows the FCPA compliance professional
a different way to continuously monitor within a company for possible Red Flags
and to begin, organize and implement a FCPA compliance investigation in a more
cost effective manner.
The Catelas software imports and analyzes communications
data, like email, IM, telephony and SMTP log files from systems such as
Microsoft Exchange Servers and Lotus Notes. The Catelas product then leverages
social network analysis and behavioral science algorithms to analyze this
communications data. These interactions are used to uncover and display the
networks that exist within companies and between the employees of companies.
Additionally, relationships between employees and external parties such as
private webmail users, competitors and other parties can be uncovered.
From this data, Catelas creates visual relationship maps.
These maps can assist a company focus resources in any FCPA compliance
investigation on any persons within the company an individual under investigation
has interpersonal relationships. The thesis of this approach is that data and
information move through trusted relationships. A person who may be involved in
a FCPA compliance matter, would be more likely to use such trusted
relationships within a company, rather than involving others, to transmit data
and information or to engage in any FCPA violative activity.
This approach can assist an investigator in not only
finding out what may have transpired in the past but it also allows the
investigator to focus who should be questioned going forward. Such relationship
maps can also inform the overall investigation protocol by allowing a company
to key in on certain persons and transactions; rather than simply running the
entire company's email database through a key word search program, or worse
yet, having a law firm (presumably young associate) read every email, at the
earliest, preliminary investigative stage.
By automatically uncovering who is talking to whom, when
they connected and how well they know each other, the Catelas software product
identifies both the internal and external people most likely to be involved.
This allows a company to review more relevant data and from that point, expand
the scope of any FCPA investigation as warranted. The Catelas approach can
assist a FCPA compliance investigation in at least three ways.
1. Early Assessment: quickly ascertain the scope, cost
and risk associated with an incident or case making you better prepared,
earlier. Determine if there is a FCPA violation, who is involved, both internal
& external and uncover all relevant content.
2. Data Identification & Collection: determine who
and what to investigate before collecting a single email or pulling data from
computers. Eliminate the need to re-collect later, avoid spoliation. Eliminate
early irrelevant custodians and avoid over collection.
3. Compliance: quickly uncover inappropriate relationships, non-obvious
connections and webmail information theft by dynamically monitoring
communications patterns of employees, partners and consultants inside and
outside your organization.
If any of this piques your interest, I would suggest you
check out the Catelas website. It provides visuals on what I have been
describing. You are probably wondering how the Catelas product relates to the
Astros and their 75-1 shot at making the Big Dance next fall. Well, if you
utilize this software product, I believe it would put your odds at much better
than the Astros winning the World Series. Moreover, Catelas will allow you to
conduct a more efficient, more cost effective and focused FCPA compliance
investigation.
Visit the FCPA Compliance and Ethics Blog,
hosted by Thomas Fox, for more commentary on FCPA compliance, indemnities and
other forms of risk management for a worldwide energy practice, tax issues
faced by multi-national US companies, insurance coverage issues and protection
of trade secrets.
This publication contains general information only and is based on the
experiences and research of the author. The author is not, by means of this
publication, rendering business, legal advice, or other professional advice or
services. This publication is not a substitute for such legal advice or
services, nor should it be used as a basis for any decision or action that may
affect your business. Before making any decision or taking any action that may
affect your business, you should consult a qualified legal advisor. The author,
his affiliates, and related entities shall not be responsible for any loss
sustained by any person or entity that relies on this publication. The Author
gives his permission to link, post, distribute, or reference this article for
any lawful purpose, provided attribution is made to the author. The author can
be reached at tfox@tfoxlaw.com.
© Thomas R. Fox, 2011