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Friday Roundup

April 28, 2017

Selective SEC release, scrutiny alert, from the docket, for the reading stack, for your viewing pleasure, and a survey. It’s all here in the Friday roundup.

Selective SEC Release

Since it was filed in December 2011, this site has closely followed the SEC’s long-standing Foreign Corrupt Practices Act enforcement action against former Magyar Telekom executives Elek Straub (former Chairman and CEO); Andras Balogh (former Director of Central Strategic Organization); and Tamas Morvai (former Director of Business Development and Acquisitions) with various FCPA and related offenses. (See here for the prior post).

The complaint alleged, in connection with a bribery scheme in Macedonia and Montenegro, that the individuals violated or aided and abetted violations of the FCPA’s anti-bribery, books and records, and internal controls provisions; knowingly circumvented internal controls and falsified books and records; and made false statements to the company’s auditor.

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Additional Points To Consider Regarding The Article “The Market For Global Anticorruption Enforcement”

April 27, 2017

Recently Professor Samuel Buell and Professor Rachel Brewster (both from Duke University School of Law) authored a paper titled “The Market for Global Anticorruption Enforcement” which addresses the general increase in FCPA enforcement over the past approximate decade.

This post sets forth additional information to consider regarding the issues discussed in the article.

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Government Of Bermuda Sues Lahey Clinic Inc, In U.S. Court, Alleging Various Bribery Related Offenses

April 27, 2017

Foreign Corrupt Practices Act enforcement by the DOJ/SEC generates much interest.

However, just as interesting (perhaps more interesting because there is actual judicial scrutiny) is civil litigation which touches upon FCPA issues. (This dynamic was discussed in FCPA Ripples).

A most interesting civil case to pass along as the Government of Bermuda recently filed this civil complaint against Lahey Clinic Inc., a non-profit academic medical center incorporated in Massachusetts, alleging various bribery related offenses.

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Thoughts On The “Combating Global Corruption Act Of 2017”

April 26, 2017

Recently Senator Ben Cardin (D-MD), along with Republican co-sponsors such as Senator David Perdue (R-GA) and Senator Marco (R-FL) and others, introduced a bill titled the “Combating Global Corruption Act of 2017.”

As stated in the preamble, the bill seeks “to identify and combat corruption in countries, to establish a tiered system of countries with respect to levels of corruption by their governments and their efforts to combat such corruption, and to assess United States assistance to designated countries in order to advance anti-corruption efforts in those countries and better serve United States taxpayers.” Corruption is defined as “the exercise of public power for private gain, including by bribery, nepotism, fraud, or embezzlement.”

This post provides a summary of the bill and offers two thoughts regarding the bill relevant to the Foreign Corrupt Practices Act.

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AG Sessions Delivers The DOJ’s FCPA Script

April 25, 2017

One can predict with a high degree of certainty what high-ranking DOJ officials will say about the Foreign Corrupt Practices Act even before hearing or reading the speech (and I say that based on highlighting on these pages over 100 FCPA enforcement agency speeches since 2009).

The script goes like this: the DOJ places a high-priority on FCPA enforcement as well as transparent enforcement; the DOJ is committed not just to corporate enforcement, but holding individuals accountable as well; and companies benefit from voluntary disclosure and cooperation.

Just like DOJ Deputy Assistant Attorney General Trevor McFadden did in February (see this prior post) and did so to varying degrees again twice last week (see here and here), yesterday Attorney General Jeff Sessions also delivered the DOJ’s FCPA script.

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