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Former Herbalife China Executives Criminally Charged By DOJ, SEC Also Charges Former Executive

By on November 15, 2019 in 2019 Enforcement Actions, Anything of Value, China, DOJ Enforcement Action, Executive Enforcement Action, Foreign Nationals, Herbalife, Hiring Family Members of Foreign Officials, Hongwei Yang, Individual Enforcement Action, Permits / Licenses / Customs / Tax, SEC Enforcement Action, Yanliang Li
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In 2014, Avon resolved a Foreign Corrupt Practices Act enforcement based in large part on obtaining a direct selling permit in China. (See here for the prior post).

In 2016, Nu Skin Enterprises resolved an FCPA enforcement action based in large part on obtaining a direct selling permit in China. (See here for the prior post).

In 2017, Herbalife disclosed that it was under FCPA scrutiny concerning its conduct in China. With the company’s scrutiny still pending, yesterday the DOJ announced that Yanliang Li (a citizen of China and former Managing Director of a Chinese division of Herbalife) and Hongwei Yang (a citizen of China and former head the External Affairs Department of a Chinese division of Herbalife) were criminally charged “for their roles in a scheme to violate the anti-bribery and the internal controls provisions of the FCPA.” Not surprisingly, the alleged conduct focused on obtaining a direct selling permit.

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DOJ Announces Guilty Pleas By Former Unaoil Executives

By on October 31, 2019 in 2019 Enforcement Actions, Algeria, Angola, Azerbaijan, Congo, Cyrus Ahsani, DOJ Enforcement Action, Foreign Nationals, Foreign Official, Foreign Officials, Gaining Access to Confidential Documents, Iran, Iraq, Kazakhstan, Libya, Oil and Gas Industry, Saman Ahsani, Steven Hunter, Syria, Unaoil, Uncategorized
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Yesterday, the DOJ announced that Cyrus Ahsani and Saman Ahsani (the former CEO and Chief Operations Officer of Monaco-based Unaoil) pleaded guilty in March 2019 to one count of conspiracy to violate the FCPA for their roles in a scheme to corruptly facilitate millions of dollars in bribe payments to officials in multiple countries. The DOJ also announced that Steven Hunter (a former business development manager at Unaoil) pleaded guilty in August 2018 to one count of conspiracy to violate the FCPA.

Prior Foreign Corrupt Practices Act enforcement actions against Rolls-Royce and SBM Offshore (see here and here) involved, in whole or in part, Unaoil and the Ahsani information refers to approximately 25 other companies including approximately ten U.S. based issuers. Thus, it is likely that additional FCPA enforcement actions involving, in whole or in part, Unaoil will be forthcoming.

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Westport Fuel Systems Resolves $4 Million FCPA Enforcement Action Based On Transfer Of Shares To A Private Equity Fund In Which A Chinese Official Held An Interest – Former CEO Also Resolves Action

By on September 27, 2019 in 2019 Enforcement Actions, China, Executive Enforcement Action, Financial Transactions With Foreign Officials, Foreign Issuers, Individual Enforcement Action, Manufacturing Industry, Nancy Gougarty, SEC Enforcement Action, Westport Fuels Systems
Westport

In the third corporate Foreign Corrupt Practices Act is less than 24 hours, the SEC announced this afternoon that Westport Fuel Systems (a Canadian company with shares traded on NASDAQ) agreed to pay approximately $4 million for “paying bribes to a foreign government official in China.”

In addition, in connection with the same core conduct, Nancy Gougarty (a U.S. citizen who previously served as Chief Operating Officer and from mid-2016 until early 2019 as the CEO and member of the board of directors) agreed to pay a $120,000 civil penalty.

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Next Up – Barclays Hands Over $6.3 Million To Uncle Sam

By on September 27, 2019 in 2019 Enforcement Actions, Barclays, Financial Services Industry, Hiring Family Members of Foreign Officials, SEC Enforcement Action
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First, it was BNY Mellon Corp. in August 2015 for $14.8 million (see here and here for prior posts). Then, it was Qualcomm in March 2016 for $7.5 million (see here and here for prior posts). Then, it was JPMorgan in November 2016 for $202.6 million (see here, here, and here for prior posts). Then, it was Credit Suisse in July 2018 for $77 million (see here and here for prior posts). Then, it was Deutsche Bank in August 2019 for $16.2 million (see here and here for prior posts).

Next up in Foreign Corrupt Practices Act enforcement actions (mostly targeting the financial services industry) focusing, in whole or in part, on internship and hiring practices being a form of bribery is Barclays as the SEC announced that the U.K. bank with shares traded on the NYSE will pay approximately $6.3 million to “settle charges that it violated the FCPA by hiring the relatives and friends of foreign government officials in order to improperly influence them in connection with its investment banking business.”

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Hot Off The Press – Printing Company Quad/Graphics Resolves $10 Million FCPA Enforcement Action

By on September 27, 2019 in 2019 Enforcement Actions, China, Cuba, Export Issues, Judicial Proceedings, Permits / Licenses / Customs / Tax, Peru, Printing Industry, Quad Graphics, SEC Enforcement Action, Third Parties
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This post earlier this week told you that there would likely be more Foreign Corrupt Practices Act enforcement this week as the SEC’s fiscal year draws to a close.

Sure enough as late yesterday the SEC announced an approximate $10 million enforcement action against Wisconsin-based printing company Quad/Graphics for “engaging in multiple bribery schemes in Peru and China.”

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