January 23, 2017
This approximate two hour engaging and visually stimulating video tutorial contains a detailed overview of all 2016 corporate FCPA enforcement actions, notable enforcement statistics, and various practical and provocative issues to consider from recent FCPA enforcement activity. The video further highlights various compliance take-away points from recent FCPA enforcement actions and provides an overview of FCPA enforcement policy developments.
A diverse group of professionals such as lawyers; finance, accounting and auditing professionals; business executives; and other compliance personnel seeking to elevate their FCPA knowledge and practical skills will find unique value in the video tutorial.
January 23, 2017
After a wild week or so in 2017 Foreign Corrupt Practices Act enforcement, back to some 2016 FCPA enforcement statistics.
This previous post highlighted various facts and figures from 2016 SEC FCPA enforcement actions against issuers.
As highlighted in the prior post, of the 24 corporate SEC FCPA enforcement actions from 2016, 7 (29%) have involved, at present, related SEC charges or findings against company employees.
In 2016, the SEC charged or found that 8 individuals violated the FCPA.
January 20, 2017
In recent weeks, the U.S. has brought Foreign Corrupt Practices Act enforcement actions against Brazilian companies based in part on conduct with Brazilian politicians and party parties and another enforcement action against a Chilean company based on its conduct with Chilean politicians and party parties. (See here and here).
FCPA enforcement actions frequently include allegations about “golf in the morning and beer drinking in the evening,” expensive bottles of wine, spa and sauna treatments, charitable contributions or internship and hiring practices all involving alleged “foreign officials.”
Bribery, the U.S. government says, and confidently proclaims “we in the United States are in a unique position to spread the gospel of anti-corruption” and that FCPA enforcement ensures not only that the United States “is on the right side of history, but also that it has a hand in advancing that history.”
Yet on inauguration day, when Washington, D.C. is awash in corporate money more so than a typical day, we really ought to pause and reflect.
In An Unusual Development, The DOJ Brings A $7 Million FCPA Enforcement Action Against Las Vegas Sands Nine Months After The SEC’s $9 Million Enforcement Action Based On The Same Conduct
January 20, 2017
Parallel DOJ and SEC Foreign Corrupt Practices Act enforcement actions against issuers based on the same core conduct are common. However, such actions are coordinated and announced on the same day.
In a highly unusual development, late yesterday the DOJ announced an FCPA action against Las Vegas based on the same core conduct at issue in the SEC’s April 2016 FCPA enforcement action against Las Vegas Sands. (See here and here prior posts).
Quite frankly, I can’t recall another instance of this happening.
But then again some strange things are happening in the final weeks and days of the Obama administration before existing DOJ officials exit. (See this Wall Street Journal article titled “Obama Administration Races To Finish Probes, Wring Payments From Firms” noting that in the past approximate week the U.S. has reached settlements worth approximately $20 billion).
Adding to the intrigue is that Sheldon Adelson (founder, chairman and chief executive officer of Las Vegas Sands) is a major Republican contributor.
January 19, 2017
In 2012, Orthofix International N.V. (“Orthofix”), a limited liability orthopedic medical device company formed under the law of Netherlands Antilles with administrative offices in Lewisville, Texas and common stock traded on Nasdaq, resolved a $7.4 million Foreign Corrupt Practices Act enforcement action ($2.2 million via a DOJ deferred prosecution agreement, and $5.2 million via a settled SEC civil complaint) based primarily on the conduct of its wholly-owned Mexican subsidiary.
In an enforcement action that was expected (see here for the August 2016 post highlighting how Orthofix International was poised to join the FCPA repeat offender club), the SEC announced yesterday that the company agreed to pay $6 million in disgorgement and penalties to settle FCPA books and records and internal controls findings “when its subsidiary in Brazil schemed to use high discounts and make improper payments through third-party commercial representatives and distributors to induce doctors under government employment to use Orthofix’s products.”
This is the second instance in the past week of a company resolving a second FCPA enforcement action in the span of approximately five years (see here for the prior post regarding Zimmer Biomet).