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Hot Off The Press – Printing Company Quad/Graphics Resolves $10 Million FCPA Enforcement Action

quad

This post earlier this week told you that there would likely be more Foreign Corrupt Practices Act enforcement this week as the SEC’s fiscal year draws to a close.

Sure enough as late yesterday the SEC announced an approximate $10 million enforcement action against Wisconsin-based printing company Quad/Graphics for “engaging in multiple bribery schemes in Peru and China.”

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The Other Shoe Drops On TechnipFMC As The SEC Announces A $5 Million Enforcement Action

othershoe

The SEC’s fiscal year ends on September 30th. Thus, it is likely that many loose ends are being closed this week and, with history as a guide, there is likely to be more FCPA enforcement actions this week.

Most FCPA enforcement actions against issuers that include a DOJ and SEC component are resolved on the same day. However, as noted in prior posts here and here concerning the DOJ’s net $81.9 million FCPA enforcement action against TechnipFMC in June 2019, the SEC prong of the enforcement action was left open.

This loose end was closed yesterday as the SEC announced an approximate $5 million enforcement action against the company “for violations of the FCPA by FMC Technologies prior to its 2017 merger with Technip S.A.”

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SEC Brings Another Enforcement Action Against A Former Cognizant Executive

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Approximately 90% of SEC corporate FCPA enforcement actions in recent years have lacked any related charges against company employees.

A bit unusual then that the February 2019 enforcement action against Cognizant Technology Solutions (see here) has resulted in not one, not two, but three individual enforcement actions as last Friday the SEC announced an administrative action against Sridhar Thiruvengadam (pictured – an Indian national and resident who previously served as Cognizant’s Chief Operating Officer).

Unlike the two prior individuals charged by the SEC and DOJ (Gordon Coburn and Steven Schwartz) who appear to be putting the government to its burden of proof, Thiruvengadam, without admitting or denying the SEC’s findings, agreed to pay a $50,000 civil penalty in an enforcement action that lacked any U.S. jurisdictional allegation other than that Thiruvengadam participated in a video conference from India with certain executives who participated in the video conference from the U.S.

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Six Years After Juniper Networks Disclosed FCPA Scrutiny, It Resolves A $11.7 Million Joke Of An Enforcement Action Based On Russia And China Subsidiary Conduct

junipernetworks

As highlighted in this previous post, in mid-2013 Juniper Networks disclosed that it was under FCPA scrutiny. Over six years later, the SEC announced yesterday that the company agreed to pay approximately $11.7 million to resolve the scrutiny.

As highlighted below, the enforcement action was based on the conduct of Russia and China subsidiary employees. In Russia, certain sales employees of the Russian representative office of Juniper’s subsidiary secretly agreed with third party channel partners to provide discounts to customers that were parked in off-book funds some of which were used to pay for customer trips, including trips for government officials, some of which were predominately leisure in nature. In China, certain sales employees of Juniper’s Chinese subsidiaries falsified trip and meeting agendas for customer events in seeking approval from Juniper’s Legal Department.

Based on the conduct alleged in the enforcement action (which is beyond any conceivable statute of limitations) as well as actual FCPA legal authority, the enforcement action is a $11.7 million joke.

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Next Up – Deutsche Bank Hands Over $16.2 Million To Uncle Sam

deutsche

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).

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 Deutsche Bank as the SEC announced yesterday that the German bank with shares traded on the NYSE will pay approximately $16.2 million “to settle changes that it violated the FCPA by hiring relatives of foreign government officials [in both the Asia Pacific Region and Russia] in order to improperly influence them in connection with investment banking business).

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