2016 Enforcement Actions Archives

In-Depth – General Cable Resolves $75.8 Million FCPA Enforcement Action, Former Senior VP Also Resolves SEC Action

By Mike Koehler on December 29, 2016 in 2016 Enforcement Actions, Angola, Anything of Value, Bangladesh, China, Distributor Issues, DOJ Enforcement Action, Egypt, General Cable Corp., Individual Enforcement Action, Indonesia, Karl Zimmer, Non-Prosecution Agreement, SEC Enforcement Action, Thailand, Third Parties, Voluntary Disclosure

Don’t yet close the books on 2016 Foreign Corrupt Practices Act enforcement.

Yesterday, the DOJ and SEC announced (here and here) an FCPA (and related) enforcement action against Kentucky-based General Cable Corporation (a manufacturer and distributor of cable and wire). The conduct at issue occurred in Angola, Bangladesh, Indonesia, Thailand, China, and Egypt.

The $75.8 million enforcement action involved a DOJ non-prosecution agreement in which the company agreed to pay an approximate $20.5 million penalty and an SEC administrative cease and desist order in which the company agreed to pay approximately $55.3 million in disgorgement and prejudgment interest.

In addition, the SEC also announced that Karl Zimmer, General Cable’s former Senior Vice President responsible for sales in Angola, agreed to pay a $20,000 civil penalty without admitting or denying the SEC’s findings that he knowingly circumvented internal accounting controls and caused FCPA violations when he approved certain improper payments.

DOJ Announces Criminal Charges And Plea Agreements In Connection With Mexican Aviation Bribery Scheme

By Mike Koehler on December 28, 2016 in 2016 Enforcement Actions, Aviation Industry, Daniel Perez, DOJ Enforcement Action, Douglas Ray, Ernesto Hernandez Montemayor, FCPA Related Charges, Hunt Pan Am Aviation, Individual Enforcement Action, Kamta Ramnarine, Mexico, Ramiro Ascencio Nevarez, Undercover Investigations, Victor Valdez

This recent post highlighted the many Foreign Corrupt Practices Act enforcement actions involving the aviation industry.

Add another to this long list as yesterday, the DOJ announced that criminal charges “were unsealed against six individuals, all of whom have pleaded guilty for their involvement in schemes to bribe Mexican officials in order to secure aircraft maintenance and repair contracts with government-owned and controlled entities, and two for conspiring to launder the proceeds of the schemes.”

The criminal FCPA conspiracy charges were against four individuals: Daniel Perez, Kamta Ramnarine, Victor Valdez, and Douglas Ray.

In Depth Into The $519 Million Teva FCPA Enforcement Action

By Mike Koehler on December 22, 2016 in 2016 Enforcement Actions, Distributor Issues, DOJ Enforcement Action, Foreign Issuers, Healthcare Providers As Foreign Officials, Internal Controls, Mexico, Russia, SEC Enforcement Action, Teva Pharmaceuticals, Travel and Entertainment, Ukraine

Records continue to be set as 2016 Foreign Corrupt Practices Act enforcement enters its final days.

Yesterday, the DOJ and SEC announced (here and here) a $519 million enforcement action against Teva Pharmaceutical Industries Ltd. (an Israeli company with American Depository Receipts traded in the U.S.) and a related entity. The settlement amount included a $283 million DOJ component and a related $236 million SEC component.

The action is believed to be the first-ever FCPA enforcement action against an Israeli company and by far the largest-ever FCPA enforcement action against a pharmaceutical company. (The $70 million 2011 enforcement action against Johnson & Johnson is second on that list). You better go ahead and update your top ten list again because the Teva enforcement action is the 4th largest of all-time. (Odebrecht / Braskem held that spot for less than 24 hours and is now bumped to 5th largest FCPA settlement amount of all-time).

Odebrecht / Braskem Bribery Schemes Net Approximate $420 Million FCPA Enforcement Action

By Mike Koehler on December 21, 2016 in 2016 Enforcement Actions, Angola, Argentina, Braskem SA, Brazil, Colombia, DOJ Enforcement Action, Dominican Republic, Ecuador, Foreign Issuers, Guatemala, Internal Controls, Jurisdiction, Mexico, Monitor, Mozambique, Obstruction Charges, Odebrecht, Panama, Permits / Licenses / Customs / Tax, Peru, SEC Enforcement Action, Statute of Limitations, Third Parties, Venezuela

Yesterday, the DOJ and SEC announced (here and here) a Foreign Corrupt Practices Act enforcement action against Odebrecht S.A. (a Brazilian holding company) and Braskem S.A. (a Brazil-based petrochemical company in which Odebrecht owns 50.1% of the voting shares, 38.1% of the total share capital and which Odebrecht “effectively controlled” according to the DOJ). Braskem has American Depositary Receipts registered with the SEC and traded on the NYSE and thus the enforcement action also included an SEC component.

Perhaps because of the less than clear DOJ release (clear once one actually reads the original source documents), this action is being reported in various places as a $3.5 billion FCPA enforcement action. While that figure represents the overall global settlement amount (Brazil and Swiss law enforcement also brought related actions), yesterday’s action was most certainly not a $3.5 billion FCPA enforcement action. Not even close.

From The Dockets

By Mike Koehler on December 6, 2016 in 2016 Enforcement Actions, Anything of Value, Bio-Rad, China, DOJ Enforcement Action, Individual Enforcement Action, Jeff Yin, Ng Lap Seng, Noisy Exit, Related Civil Litigation, United Nations

This previous post mentioned that the DOJ filed a superseding indictment adding Foreign Corrupt Practices Act charges to its existing 2015 enforcement action against Ng Lap Seng and Jeff Yin.

This previous post highlighted the May 2015 civil case brought by Sanford Wadler (the former General Counsel of Bio-Rad) asserting various employment claims against the company in the aftermath of the company’s 2014 FCPA enforcement action in which it agreed to pay approximately $55 million to resolve DOJ and SEC FCPA enforcement actions.

This post further highlights the DOJ’s individual criminal charges against Ng and Yin as well as the strange twist in the Wadler – Bio-Rad litigation.

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In-Depth – General Cable Resolves $75.8 Million FCPA Enforcement Action, Former Senior VP Also Resolves SEC Action

In Depth Into The $519 Million Teva FCPA Enforcement Action

Odebrecht / Braskem Bribery Schemes Net Approximate $420 Million FCPA Enforcement Action

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