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Another Week, Another DOJ Speech As McFadden Talks FCPA And Related Topics In Brazil

mcfadden

Yesterday, Acting Principal Deputy Assistant Attorney General Trevor McFadden delivered this speech in Brazil.

As highlighted in this post, McFadden talked about “some recent developments regarding the DOJ’s international cooperation efforts,” “some of the diverse tools in [the DOJ’s] prosecutorial toolbox that allow [it] to prosecute corruption” and “the importance of transparency in our anti-corruption prosecutions.”

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DOJ’s McFadden And Sessions Nicely Articulate The Policy Rationale For An FCPA Compliance Defense

great job

As highlighted in the article “Revisiting a Foreign Corrupt Practices Act Compliance Defense” the value and efficacy of an FCPA compliance defense is not just limited to more just and fair results when it comes to “hard enforcement” of the FCPA by the DOJ and SEC.

More importantly, an FCPA compliance defense will also increase “soft enforcement” of the FCPA. Soft enforcement generally refers to a law’s ability to facilitate self-policing and compliance to a greater degree than can be accomplished through “hard” enforcement alone.

Stated differently, the goal of the FCPA is to prevent bribery of foreign officials and that goal is best accomplished not solely through ad hoc “hard” enforcement actions, but by also better incentivizing corporate compliance designed to prevent improper conduct. Numerous prior posts (here, here, herehere, here, here, here, here, here, here, here) have highlighted this dynamic including how the DOJ has long recognized the importance of “soft enforcement” of the FCPA.

In recent speeches, DOJ Deputy Attorney General Trevor McFadden (as well as Attorney General Jeff Sessions) nicely articulated the policy rationale for an FCPA compliance defense. However, actions speak louder than words and the DOJ (and SEC) have continually failed to support the best positive incentivize to maximize “soft” enforcement of the FCPA.

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Friday Roundup

Roundup

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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AG Sessions Delivers The DOJ’s FCPA Script

script

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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Friday Roundup

Roundup

Another McFadden speech and scrutiny alerts and updates. It’s all here in the Friday roundup.

Another McFadden Speech

Obviously Acting Principal Deputy Assistant Attorney General Trevor McFadden has many job duties, but it sure seems like giving FCPA speeches is at the top of this list. This prior post highlighted McFadden’s February 16th FCPA speech and this prior post highlighted McFadden’s April 18th FCPA speech.

Yesterday, McFadden delivered yet another FCPA speech at a conference run by a for profit company. As highlighted in numerous prior posts, it is truly a disgraceful practice when for-profit companies use high-ranking DOJ officials to drive attendance to their paid events and it is likewise disgraceful that DOJ officials allow themselves to be used in this way.

In any event, McFadden’s speech was basically the same as his speech earlier this week (although a meaningful component of yesterday’s speech was devoted to other topics such as violent crime).

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