FCPA Professor has been described as “the Wall Street Journal concerning all things FCPA-related,” and “the most authoritative source for those seeking to understand and apply the FCPA.”
Set forth below are the topics discussed this week on FCPA Professor.
As highlighted here, Stryker joined the FCPA repeat offender club as the SEC announced a $7.8 million enforcement action against the medical device company for not having internal accounting controls “sufficient to detect the risk of improper payments in sales of Stryker products in India, China, and Kuwait” and because “Stryker’s India subsidiary failed to maintain complete and accurate books and records.”
As highlighted here, the DOJ and SEC announced an enforcement action against Brazil-based Petrobras based on its interactions with Brazilian politicians and political parties and related financial disclosure issues. The net FCPA settlement amount was approximately $170 million. The enforcement action is believed to be the first FCPA enforcement against a foreign government in that Petrobras is an alleged SOE and thus considered by the FCPA enforcement agencies an “instrumentality” of the Brazil government. This post highlights additional issues to consider from the enforcement action.
As highlighted here, former SBM Offshore executives Anthony Mace (the former CEO of SBM Offshore) and Robert Zubiate (a former sales and marketing executive at a company subsidiary) were sentenced. Mace was sentenced to serve 36 months in prison and a fine of $150,000 and Zubiate was sentenced to serve 30 months in prison and a fine of $50,000. As highlighted in this prior post, the Mace enforcement action, in particular, should be required reading for all corporate executives.
As summarized in this post (with commentary), Deputy Assistant AG Matthew Miner gave a speech that touched upon a number of FCPA issues including: the DOJ’s Corporate Enforcement Policy, voluntary disclosure, so-called declinations, coordinated resolutions, general compliance issues, and M&A transactions.
As highlighted here, Stephanie Avakian (Co-Director of the SEC’s Enforcement Division) recently delivered a speech in which she pondered the meaning of success in enforcement.
So much for that tone at the top thing as the SEC returned to bring an enforcement action against SQM’s former CEO Patricio Contesse Gonazlez (see here).
This FCPA Flash podcast episode is a conversation with Judge Shira Scheindlin. Judge Scheindlin served as a federal trial court judge in the Southern District of New York for 20+ years until May 2016. Most federal court judges go their entire career without an FCPA case being placed on their docket. However, Judge Scheindlin is an exception and during her time on the bench she refereed more disputed FCPA issues than any other federal court judge in FCPA history. During the podcast, Judge Scheindlin describes how she was generally on a judicial island when interpreting the FCPA and the difficulty of interpreting the “ambiguous” FCPA. The podcast is a must listen for anyone interested in FCPA jurisprudence.
As highlighted in this guest post, Canada now has deferred prosecution agreements.