Top Menu

Fresenius Medical Care Pays Approximately $232 Million To Resolve Its Long-Standing FCPA Scrutiny


German healthcare firm Fresenius Medical Care AG (a company with American Depositary Receipt shares traded on the NYSE) has been under FCPA scrutiny since 2012 (no that is not a typo).

Today the DOJ and SEC announced (here and here) an approximate $232 million enforcement action ($84.7 million to the DOJ and $147 million to the SEC) against the company for alleged bribery schemes involving physicians and other healthcare personnel in Angola, Saudi Arabia, Morocco, Spain, Turkey, Gabon, Benin, Burkina Faso, Senegal, Ivory Coast, Niger, Cameroon China, Serbia, Bosnia, and Mexico.

While not specified in any of the resolution documents, the DOJ’s non-prosecution agreement and SEC’s administrative order make generic reference to the Angola and Saudi Arabia conduct involving ‘agents and employees utiliz[ing] the means and instrumentalities of U.S. interstate commerce, including the use of internet-based email accounts hosted by numerous service providers located in the United States.”

Continue Reading

DOJ Charges Well-Known Venezuelan Billionaire Raul Gorrin With FCPA And Related Offenses


I recently had a conversation with a lawyer who speculated that the recent spate of Venezuela-focused Foreign Corrupt Practices Act enforcement actions was part of a U.S. government effort to facilitate regime change in the country.

Who knows, but it is hard to ignore the many recent FCPA enforcement actions focused on conduct in Venezuela (see hereherehere and here for prior posts).

The latest is this recently unsealed criminal indictment against Raul Gorrin Belisario, a well-known Venezuelan businessman and described by the DOJ as a citizen and national of Venezuela who at various time periods relevant to the charges was a resident of the U.S. with a residence in Florida.

Continue Reading

And Herein Lies The Compliance Challenge


I have no doubt that the individuals associated with the International Forum on Business Ethical Conduct for the Aerospace and Defense Industry (IFBEC) who drafted these recently released “model business courtesies and hospitality guidelines” did so in good faith with sincere efforts to reduce risk under the Foreign Corrupt Practices Act and related laws.

However, following its guidelines in certain instance will actually increase risk and herein lies the compliance challenge: one can follow so-called best practices and still be exposed to FCPA or related scrutiny. In other words, FCPA compliance is sometimes like a game of heads I win, tails you lose.

Continue Reading

Foreign Subsidiaries Of French Pharma Company Sanofi Allegedly Bribe Kazakh And Middle Eastern “Foreign Officials” – Uncle Sam Collects $25.2 Million

Uncle Sam3

If history is any guide, September is likely to be an active month for Foreign Corrupt Practices Act enforcement as the SEC’s fiscal year ends.

Sure enough, yesterday the SEC announced an enforcement action against Paris-based pharmaceutical company Sanofi. The conduct at issue focused on employees and agents of the company’s subsidiaries in Kazakstan and various Middle Eastern countries providing things of value to “foreign officials, including healthcare professionals, in order to improperly influence them and increase sales of Sanofi products.”

In doing so, the enforcement action once again raises the policy issue of the U.S. bringing an enforcement action against a foreign company (domiciled in a country also party to the OECD Convention) for its interaction with non-U.S. officials. (See here for a prior post).

Continue Reading

Cryptocurrencies And The FCPA: So What?


There are many things that are FCPA relevant, but not all things are FCPA relevant. As to the later, I’ve been asked several times in recent months different versions of the same general question: what is your view of cryptocurrencies and the FCPA?

I suppose if I wanted to I could blast out (like many FCPA Inc. participants often do) an alert or article highlighting the “emerging risks” and or “hidden dangers” of cryptocurrencies and then use this trigger to market Foreign Corrupt Practices Act compliance services. But this is not what motivates me to write or consistent with my goal of being candid and calling the “balls and strikes” as I see them the regardless of what it may mean for my pocketbook.

Thus, as highlighted below in more detail, my general answer to the above question has been: I don’t really have a view because I don’t think cryptocurrencies – from the standpoint of liability under the FCPA’s anti-bribery provisions – present any unique issues.

Continue Reading

Powered by WordPress. Designed by WooThemes