Top Menu

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.”

Continue Reading

DOJ’s McFadden Makes Sense When Talking About “Declinations” And States That FCPA Investigations Should Be “Measured In Months, Not Years”

mcfadden

Yesterday, Acting Principal Deputy Assistant Attorney General Trevor McFadden deliver this speech in Washington, D.C.

Sure, like a prior recent speech, McFadden did read from the “DOJ’s FCPA script,” but to his credit he did say some important things about FCPA compliance that is refreshing to hear from the DOJ. In addition, McFadden’s statement that his “intent is for our FCPA investigations to be measured in months, not years” should be welcome news to the business community. However, the DOJ has been saying the same thing for years and a wait and see approach is most prudent. For instance, in this 2005 speech then DOJ Assistant Attorney General for the Criminal Division Christopher Wray talked about “real-time enforcement” and stated: “in other words, punishing wrongdoers promptly after they commit their crimes. Simply put, speed matters in corporate fraud investigations . The days of five-year investigations, of agreement after agreement tolling the statute of limitations-while ill-gotten gains are frittered away and investor confidence sinks-are increasingly a thing of the past.”

Moreover, as highlighted in more detail below, McFadden made sense when talking about DOJ “declinations” and his reasons for why the DOJ may not bring a Foreign Corrupt Practices Act enforcement action in an instance of FCPA scrutiny undermines the “declination” definition used by certain FCPA Inc. participants.

Continue Reading

The Origins Of 2016 Corporate FCPA Enforcement Actions

start

2016 was a record-breaking year for Foreign Corrupt Practices Act enforcement.

Largest number of corporate enforcement actions in FCPA history – check. Largest aggregate corporate settlement amounts in FCPA history – check. These statistics will all be profiled in much greater detail in future posts.

Before an FCPA enforcement action is announced however, FCPA scrutiny must first originate.

This post, the first in a weeks-long FCPA statistical feast on FCPA Professor, highlights the origins of 2016 corporate enforcement action.

Continue Reading

SEC Director Of Enforcement Ceresney On …

Ceresney

Yesterday’s post highlighted comments made by Deputy Attorney General Sally Yates at a recent Foreign Corrupt Practices Act event and this post provides equal time to comments made by SEC Director of Enforcement Andrew Ceresney at the same event.

Similar to the DOJ speech, much of Ceresney’s speech represents the same old, same old something even he acknowledged during his speech.

When reading Ceresney’s comments about the importance of individual FCPA prosecutions keep in mind the following facts. In 2016 there have been 21 SEC corporate FCPA enforcement actions and 15 actions (72%) have not resulted (at least yet) in any related FCPA charges against company employees. This figure is generally consistent with the overall figure since 2008 in which approximately 80% of SEC corporate FCPA enforcement actions have not resulted in any related FCPA charges against company employees.

Continue Reading

SEC Chair White On The FCPA

Mary Jo White, chair of the Securities and Exchange Commission, testifies to the House Financial Services Committee about the effects of the Volcker Rule on employment in Washington on February 5, 2014.      REUTERS/Joshua Roberts    (UNITED STATES - Tags: POLITICS BUSINESS) - RTX189AM

Earlier this week SEC Chair Mary Jo White delivered this speech.

Her speech focused on “a few priority areas that illustrate the dimensions of the SEC’s international role” and a substantial portion of the speech focused on the Foreign Corrupt Practices Act including how “vigorous enforcement of the FCPA is a high priority for both the SEC and DOJ.”

On individual actions, Chair White stated: “we prioritize charging individuals involved in bribery schemes where we have the necessary evidence and jurisdiction over the offender [and that] holding individuals accountable for their misconduct remains one of the most powerful deterrents in any enforcement area.”

Keep in mind however the following facts. In 2016 thus far, 70% of corporate SEC FCPA enforcement actions have not involved any related individual charges and since 2008 approximately 80% of corporate SEC FCPA enforcement actions have not involved any related individual charges.

The remainder of this post excerpts the FCPA portion of Chair White’s speech.

Continue Reading

Powered by WordPress. Designed by WooThemes