- FCPA Professor - http://fcpaprofessor.com -

DOJ Individual Actions: The Strange Public – Private Divide

This recent post [1] highlighted certain facts and figures regarding the DOJ’s prosecution of individuals for Foreign Corrupt Practices Act offenses in 2018 and historically.

As highlighted in the prior post, DOJ FCPA individual enforcement actions are significantly skewed by a small handful of enforcement actions and the reality is, despite the DOJ’s rhetoric, approximately 80% of DOJ corporate enforcement actions since 2006 have not (at least yet) resulted in any related DOJ FCPA charges against company employees.

Another very interesting and significant picture emerges when analyzing actual DOJ individual FCPA prosecutions based on whether the individual charged was employed by or otherwise associated with an issuer or a private business organization.

Of the 159 individuals charged by the DOJ with FCPA criminal offenses since 2006, 117 of the individuals (74%) were employees or otherwise affiliated with private business organizations.  This is a striking statistic given that 85 of the 111 corporate DOJ FCPA enforcement actions since 2006 (77%) were against issuers.

In the 26 private business organization DOJ FCPA enforcement actions since 2006, individuals were charged in connection with 11 of those actions (42%).  In contrast, in the 85 issuer DOJ FCPA enforcement actions since 2006, individuals were charged in connection with 16 of those cases (18%). Since 2012 there have been only seven instances of an individual associated with an issuer being criminally charged with FCPA violations (Garth Peterson (Morgan Stanley), Alain Riedo (Maxwell Technologies), Vicente Garcia (SAP), Samuel Mebiame (Och-Ziff), Anthony Mace and Robert Zubiate (SBM Offshore), Colin Steven (Embraer), and Roger Ng and Tim Leissner (Goldman Sachs)

Three of the seven instances have involved foreign issuers. Stated differently, since 2012 only five individuals associated with a U.S. issuer have been criminally charged with FCPA offenses.

[2]

In short, a DOJ FCPA enforcement against a private business organization is approximately 2.5 times more likely to have a related DOJ FCPA criminal prosecution of an individual compared to a DOJ FCPA enforcement action against an issuer and FCPA enforcement actions against individuals associated with issuers are rather rare.

The below information highlights all individuals criminally charged with FCPA violations since 2006 and whether they were associated with a private business organization or an issuer.

Individuals Charged With FCPA Criminal Offenses Since 2008 (Employer / Affiliation)

Bold = employed or affiliated with a non-issuer

Faheem Salam and Steven Head (employees of Titan)

Christian Sapsizian, Edgar Acosta (employee / agent of Alcatel)

Yaw Amoako, Steven Ott, Roger Young (employees of ITXC Corp.)

Richard Novak (associated with various private internet businesses)

Leo Smith (employee of Pacific Consolidated Industries)

William Jefferson (owner of various private family owned businesses)

Si Chan Wooh (employee of Schnitzer Steel)

Gerald Green, Patricia Green (owners / operators of several private companies)

Martin Eric Self (employees of Pacific Consolidated Industries LP)

Shu Quan Sheng (owner of AMAC International Inc., but acting on behalf of French Company A – a publicly traded corporation)

Misao Hioki (employee of Bridgestone Corporation)

Nam Nguyen, Joseph Lukas, Kim Nguyen, An Nguyen (employees / agents of Nexus Technologies)

James Tillery, Jim Brown, Jason Steph, Paul Novak (employee / agent of Willbros Group)

Albert Jack Stanley, Jeffrey Tesler, Wojciech Chodan (employees / agents of KBR Inc., – a publicly traded corporation and/or other publicly traded corporations)

Richard Morlock, Stuart Carson, Hong Carson, Paul Cosgrove, David Edmonds, Flavio Ricotti, Han Yong Kim, Mario Covino (employees of Control Components Inc.)

Ousama Naaman (agent of Innospec)

John Jospeh O’Shea, Fernando Maya Basurto (employee / agent of ABB Ltd.)

Charles Paul Edward Jumet, John Warwick (employees of Ports Engineering Consultants Corporation)

Jorge Granados, Manuel Caceres, Juan Pablo Vasquez, Manuel Salvoch (employees of Latin Node Inc. )

Juan Diaz, Antonio Perez, Joel Esquenazi, Carlos Rodriguez, Marguerite Grandison, Jean Fourcand, Washington Vasconez Cruz, Amadeus Richers, Cecilia Zurita (employees / agents of Terra Telecommunications Corp., Telecom Consulting Services Corp., JD Locator Services, Inc. or Cinergy Telecommunications)

Enrique Faustino Aguilar, Angela Maria Gomez Aguilar, Keith Lindsey, Steve Lee (employees / agents of Lindsey Manufacturing Corp.)

Richard Bistrong (employee of Armor Holdings Inc.)

Jonathan Spiller John Mushriqui, Jeanna Mushriqui, David Painter, Lee Wares, Pankesh Patel, Ofer Paz, Israel Weisler, Michael Sacks, John Benson Wier, Haim Geri, Yochanan Choan, Saul Mishkin, R. Patrick Caldwell, Stephen Giordanella, Andrew Bigelow, Helmie Ashiblie, Daniel Alvirez, Lee Allen Tolleson, John Gregory Godsey (all employees of private business entities), Mark Morales (employee of Allied Defense Group – a publicly traded corporation), Amaro Goncalves (employee of Smith & Wesson – a publicly traded corporation)

Bobby Elkin (employee of Alliance One International)

Uriel Sharef, Herbert Steffen, Andres Truppel, Ulrich Bock, Stephan Signer, Eberhard Reichert, Carlos Sergi and Miguel Czysch (employees / agents of Siemens)

Garth Peterson (employee of Morgan Stanley)

Peter DuBois, Neah Uhl, Bernd Kowalewski, Jald Jenson (associated with BizJet Int’l)

William Pomponi, Lawrence Hoskins, David Rotschild, Frederic Pierucci (associated with Alstom Power – a private business entity [note the individuals were charged under the dd-2 prong of the FCPA even though Alstom (the parent company) is a publicly traded company]

Joseph Sigelman, Knut Hammarskjold, Gregory Weisman (associated with Petro Tiger Ltd )

Dmitry Firtash, Andras Knopp, Suren Gevorgyan, Gajendra Lal, Periyasamy Sunderalingam (associated with DF Group)

Benito Chinea, Joseph DeMenesesTomas Clark, Alejandro Hurtardo, Ernesto Lujana (associated with Direct Access Partners)

Alain Riedo (associated with Maxwell Technologies)

Dmitrij Harder (associated with Chestnut Consulting Group)

James Rama (associated with IAP Worldwide)

Richard Hirsch, James McClung (associated with Louis Berger Int’l)

Vicente Garcia (associated with SAP)

Daren Condrey (associated with Transport Logistics International)

Roberto Rincon, Abraham Shiera, Moises Abraham Millan Escobar, Juan Hernandez, Charles Beech and Fernando Ardila, Luis De Leon, Nervis Villalobos, Jose Gonzalez, Juan Carlos Castillo (associated with various private business entities)

Samuel Mebiame (connected to Och-Ziff)

Ng Lap Seng, Jeff Yin, Julia Vivi Wang (associated with an un-named non-governmental organization )

Daniel Perez, Kamta Ramnarine, Victor Valdez, and Douglas Ray (associated with Hunt Pan Am Aviation, Inc.)

Joo Hyan Bahn, Ban Ki Sang, and San Woo (associated with Keangnam Enterprises)

Joseph Baptiste and Roger Boncy (associated with a Maryland-based Haitian focused non-profit)

Keith Barnett, Andreas Kohler, James Finley, Aloysius Zuurhout and Petros Contoguris (associated with Rolls-Royce Energy Systems )[note the individuals were charged under the dd-2 prong of the FCPA even though Rolls Royce (the parent company) is a publicly traded company]

Anthony Mace and Robert Zubiate (associated with SBM Offshore)

Patrick Ho and Cheikh Gadio (associated with China Energy Fund Committee / CEFC China Energy Company Limited).

Colin Steven (associated with Embraer)

Jeffrey Chow (associated with Keppel Offshore)

Mark Lambert (associated with Transport Logistics International)

Lawrence Parker (associated with various Florida-based phone companies)

Frank Chatburn (associated with an unidentified private company)

Roger Ng, Tim Leissner and Jho Low (associated with Goldman Sachs)

Raul Gorrin (associated with unidentified foreign companies)

Save Money With FCPA Connect

Keep it simple. Not all FCPA issues warrant a team of lawyers or other professional advisers. Achieve client and business objectives in a more efficient manner through FCPA Connect. Candid, Comprehensive, and Cost-Effective.

Connect [3]