Remember when a top-ranking DOJ official said in 2017 (see here) that the DOJ’s “intent is for our FCPA investigations to be measured in months, not years”?
Me too.
That was pretty funny.
As highlighted here, in mid- 2019 3M disclosed FCPA scrutiny and the company recently disclosed:
“The Company, through its internal processes, discovered certain travel activities and related funding and record keeping issues raising concerns, arising from marketing efforts by certain business groups based in China. The Company initiated an internal investigation to determine whether the expenditures may have violated the U.S. Foreign Corrupt Practices Act (FCPA) or other potentially applicable anti-corruption laws. The Company has retained outside counsel and a forensic accounting firm to assist with the investigation. In July 2019, the Company voluntarily disclosed this investigation to both the Department of Justice and Securities and Exchange Commission and is cooperating with both agencies. The Company is in discussions related to potential resolution but cannot predict at this time the ultimate outcome or actions that may be taken by the Department of Justice or Securities and Exchange Commission.” (Emphasis added).
It’s a joke that companies are under FCPA scrutiny for so long – particularly companies that voluntarily disclose and cooperate (as to the later issue something nearly all companies do).
Long-lasting FCPA scrutiny also completely undermines DOJ and SEC rhetoric on this issue.
In addition to the above DOJ statement in 2017, as highlighted here, in 2020 Stephanie Avakian (Director of the SEC’s Division of Enforcement) stated that the SEC was focused on maximizing resource allocation ” to shorten the amount of time it takes to complete investigations and bring cases.”
As highlighted here, in 2021 Gary Gensler (SEC Chair) talked about “timeliness” and stated: “I think we should focus on bringing matters to resolution swiftly. As the old legal saying goes, justice delayed is justice denied. […] We’ve got precious resources, we need to move the docket, and we will be bringing cases expeditiously.”
As highlighted above, 3M’s recent disclosure merely states that the company “is in discussions related to potential resolution.”
There have been several prior examples of a company disclosing such a development and it still takes 1-2 years to resolve the FCPA scrutiny.
