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Travel Agencies Are Third Parties Too

July 15, 2020

Companies doing business in the global marketplace engage all types of third parties. Generally, Foreign Corrupt Practices Act compliance tends to focus, with good reason, on third parties such as agents, representatives, distributors and others that assist a company in obtaining or retaining business.

However, given the DOJ and SEC’s broad interpretation of that key element of the FCPA’s anti-bribery provisions, any third party that has a point of contact with a foreign official – even if outside the context of foreign government procurement – can potentially expose a business organization to scrutiny and enforcement.

This includes travel agencies as recently demonstrated by the Novartis enforcement action.

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FCPA Enforcement Actions Against Swiss Companies

July 14, 2020

When thinking of foreign companies that have resolved Foreign Corrupt Practices Act enforcement actions, most people likely think of German and French companies and to be sure there have been several enforcement actions against companies from those countries.

Yet, one of top domiciliary of foreign companies to resolve FCPA enforcement actions is actually Switzerland.

This post highlights the ten FCPA enforcement actions against Swiss companies (including two FCPA repeat offenders) and/or related entities that have netted the U.S. treasury approximately $805 million.

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Healthcare Professionals As “Foreign Officials”

July 13, 2020

It is one of the more dubious FCPA enforcement theories there is.  It has never been subjected to judicial scrutiny.  It is a relatively new enforcement theory when one considers that the Foreign Corrupt Practices Act was enacted in 1977.  It is an enforcement theory that has been used 33 times since first introduced to the FCPA context in 2002 and is thus one of the reasons for the general increase in FCPA enforcement in the modern era.

It is the enforcement theory that employees (such as physicians, nurses, mid-wives, lab personnel, etc.) of certain foreign health care systems are “foreign officials” under the FCPA and thus occupy a status akin to a President or Prime Minister.

This post traces the origins and prominence of this theory,  contains comments from the former DOJ FCPA enforcement attorney who came up with this theory, and highlights a data point relevant to the legitimacy and validity of this theory.

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This Week On FCPA Professor

July 11, 2020

FCPA Professor has been described as “the Wall Street Journal concerning all things FCPA-related,” and “the most authoritative source for those seeking to understand and apply the FCPA.”

Set forth below are the topics discussed this week on FCPA Professor.

This post highlights additional issues to consider from the recent Alexion Pharmaceuticals enforcement action.

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Friday Roundup

July 10, 2020

The Bible?, Rampage?, scrutiny alert, cert denied and for the reading stack. It’s all here in the Friday roundup.

The Bible?

This Vinson & Elkins alert calls the FCPA Guidance “the ‘Bible’ for those operating in the FCPA space.”

The “Bible” for those operating in the FCPA space is the law and other legal authority – not non-binding enforcement agency guidance.

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