Top Menu

Former Herbalife China Executives Criminally Charged By DOJ, SEC Also Charges Former Executive

herbalife

In 2014, Avon resolved a Foreign Corrupt Practices Act enforcement based in large part on obtaining a direct selling permit in China. (See here for the prior post).

In 2016, Nu Skin Enterprises resolved an FCPA enforcement action based in large part on obtaining a direct selling permit in China. (See here for the prior post).

In 2017, Herbalife disclosed that it was under FCPA scrutiny concerning its conduct in China. With the company’s scrutiny still pending, yesterday the DOJ announced that Yanliang Li (a citizen of China and former Managing Director of a Chinese division of Herbalife) and Hongwei Yang (a citizen of China and former head the External Affairs Department of a Chinese division of Herbalife) were criminally charged “for their roles in a scheme to violate the anti-bribery and the internal controls provisions of the FCPA.” Not surprisingly, the alleged conduct focused on obtaining a direct selling permit.

Continue Reading

Issues To Consider From The Barclays Enforcement Action

Issues

This prior post highlighted the SEC’s recent $6.3 million Foreign Corrupt Practices Act enforcement action against Barclays – the latest FCPA enforcement action focused on alleged improper internship and hiring practices primarily involving the financial services industry.

This post continues the analysis by highlighting additional issues to consider.

Timeline

In its March 1, 2016 annual report, Barclays disclosed:

Continue Reading

Next Up – Barclays Hands Over $6.3 Million To Uncle Sam

barclays2

First, it was BNY Mellon Corp. in August 2015 for $14.8 million (see here and here for prior posts). Then, it was Qualcomm in March 2016 for $7.5 million (see here and here for prior posts). Then, it was JPMorgan in November 2016 for $202.6 million (see herehere, and here for prior posts). Then, it was Credit Suisse in July 2018 for $77 million (see here and here for prior posts). Then, it was Deutsche Bank in August 2019 for $16.2 million (see here and here for prior posts).

Next up in Foreign Corrupt Practices Act enforcement actions (mostly targeting the financial services industry) focusing, in whole or in part, on internship and hiring practices being a form of bribery is Barclays as the SEC announced that the U.K. bank with shares traded on the NYSE will pay approximately $6.3 million to “settle charges that it violated the FCPA by hiring the relatives and friends of foreign government officials in order to improperly influence them in connection with its investment banking business.”

Continue Reading

Internships And Job Opportunities For Family Members Of Alleged “Foreign Officials”

interns

Yesterday’s post highlighted the 30 corporate enforcement actions based, in whole or in part, on the enforcement theory that employees (such as physicians, nurses, mid-wives, lab personnel, etc.) of certain foreign health care systems are “foreign officials” under the FCPA.

It was noted in the prior post that this enforcement theory has never been subjected to judicial scrutiny and that a useful datapoint in examining the legitimacy and validity of this enforcement theory is analyzing the number of criminal charges filed against individuals based on this theory. That answer was zero, zilch, nada.

The same can be said about another dubious Foreign Corrupt Practices Act enforcement theory that has also become prominent in the modern era and that is providing an internship (even an unpaid internship) or other job opportunity to the family member of an alleged “foreign official” violates the FCPA.

Continue Reading

Issues To Consider From The Deutsche Bank Enforcement Action

Issues

This prior post highlighted the SEC’s $16.2 million Foreign Corrupt Practices Act enforcement action against Deutsche Bank – the latest FCPA enforcement action focused on alleged improper internship and hiring practices primarily involving the financial services industry.

This post continues the analysis by highlighting additional issues to consider.

Timeline

The company’s FCPA scrutiny reportedly began in mid-2013. Thus, from start to finish, Deutsche Bank’s FCPA scrutiny lasted an unconscionable six years.

Continue Reading

Powered by WordPress. Designed by WooThemes