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Corporate FCPA Enforcement In 2017 Compared To Prior Years

Statistical Analysis

This post, the first in a weeks-long statistical feast on FCPA Professor, compares corporate FCPA enforcement in 2017 to prior years. Keep the numbers in this post in mind when you see (or have seen already) other 2017 FCPA enforcement statistics that use creative and haphazard counting methods or fail to use accurate or consistent math.

The most reliable and accurate way to keep FCPA enforcement statistics is by using the “core” approach which focuses on unique instances of FCPA scrutiny. The core approach does not distort FCPA enforcement statistics by double counting parallel DOJ and SEC actions involving the same core conduct announced on the same day nor does the core approach distort FCPA enforcement statistics by separately counting the sometimes unique ways the DOJ slices and dices corporate conduct between parent companies and subsidiaries. As highlighted in the article “A Common Language to Remedy Distorted FCPA Enforcement Statistics,” the core approach to tracking FCPA enforcement has been endorsed by the DOJ and is a commonly accepted method used to track enforcement in other areas of law.

Corporate DOJ FCPA Enforcement Actions (2010 – 2017)

Year Core Actions
2017 9
2016 13
2015 2
2014 7
2013 7
2012 9
2011 11
2010 17

Corporate SEC FCPA Enforcement Actions (2010 – 2017)

Year Actions
2017 7
2016 24
2015 9
2014 7
2013 8
2012 8
2011 13
2010 19

Corporate DOJ FCPA Enforcement Action Settlement Amounts (2010 – 2017)*

Year Settlement Amounts
2017 $845 million
2016 $1.34 billion
2015 $24.2 million
2014 $1.25 billion
2013 $420 million
2012 $142 million
2011 $355 million
2010 $870 million

*After accounting for various credits or deductions in certain enforcement actions for related foreign law enforcement actions

SEC FCPA Enforcement Action Settlement Amounts (2010 – 2017)*

Year Settlement Amounts
2017 $289 million**
2016 $1.07 billion
2015 $114 million
2014 $327 million
2013 $300 million
2012 $118 million
2011 $148 million
2010 $530 million

*After accounting for various credits or deductions in certain enforcement actions for related foreign law enforcement actions

**The FCPA portion of the approximate $13 million Alere action was $3.8 million.

Viewing FCPA enforcement in the aggregate (DOJ and SEC combined) is of course also useful and informative and in 2017 the DOJ and SEC combined collected approximately $$1.13 billion in 13 core corporate enforcement actions.

The below chart provides a summary of corporate FCPA enforcement data (DOJ and SEC combined) for the years 2007-2017, as well as notable circumstances that significantly skewed enforcement data statistics for particular years.

Corporate FCPA Enforcement Actions (2007 – 2017)

Year Core Actions Settlement Amounts* Of Note
2007 15 $149 million Six enforcement actions involved Iraq Oil for Food conduct and these enforcement actions comprised 40% of all enforcement actions and approximately 50% of the $149 million amount.
2008 10 $885 million The $800 million Siemens enforcement action comprised approximately 90% of the $885 million amount.
2009 11 $645 million The $579 million KBR / Halliburton Bonny Island, Nigeria enforcement action comprised approximately 90% of the $645 million amount.
2010 21 $1.4 billion Six enforcement actions, all resolved on the same day, involved various oil and gas companies’ use of Panalpina in Nigeria. Panalpina also resolved an enforcement action on the same day.

Two enforcement actions (Technip and Eni / Snamprogetti) involved Bonny Island conduct.

In other words, there were 14 unique corporate enforcement actions in 2010. Of further note, the two Bonny Island enforcement actions, Technip($338 million) and Eni/Snamprogetti ($365 million) comprised approximately 50% of the $1.4 billion amount.

2011 16 $503 million The $219 million JGC Corp. enforcement action involved Bonny Island conduct and comprised approximately 44% of the $503 million amount.
2012 12 $260 million No enforcement actions significantly skewed the statistics.
2013 9 $720 million The $398 million Total enforcement action comprised approximately 55% of the $720 million amount.
2014

 

10 $1.6 billion Two enforcement actions (Alstom – $772 million and Alcoa – $384 million) comprised approximately 72% of the $1.6 billion amount.
2015

 

11 $139 million No enforcement actions significantly skewed the statistics.
2016 27 $2.41 billion

 

Three enforcement actions (Teva, Odebrecht/Braskem and VimpelCom) comprised approximately 56% of the $2.41 billion amount and five enforcement actions (the three mentioned above plus JP Morgan and Embraer) comprised approximately 72% of the amount
2017 13 $1.13 billion Two enforcement actions (Telia and SBM Offshore) comprised approximately 65% of the $1.13 billion amount and four enforcement actions (the two mentioned above plus Rolls-Royce and Keppel Offshore & Marine) comprised approximately 88% of the amount

 

TOTALS 155 $9.9 billion

*After accounting for various credits or deductions in certain enforcement actions for related foreign law enforcement actions

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