BIT Mining (500.Com) Resolves FCPA Enforcement Action In Connection With Failed Japan Bribery Scheme
Yesterday the DOJ and SEC announced a net $10 million Foreign Corrupt Practices Act enforcement action against BIT Mining Ltd. (formerly known as 500.com) in connection with a failed Japan bribery scheme concerning efforts to obtain a license to operate a casino.
500.com was formerly an online sports lottery service provider incorporated in the Cayman Islands, with headquarters and major business operations in Shenzhen, China with American Depositary Shares (ADS) traded on the New York Stock Exchange (NYSE). 500.com is now known as BIT Mining, a crypto assets mining business incorporated in the Cayman Islands and headquartered in Ohio with ADSs traded on the NYSE.
The enforcement action involved a DOJ component (net $6 million – a $54 million criminal penalty, reduced to $10 million based on an inability to pay, and further reduced to $6 million reflecting a credit for the amount paid to the SEC) and an SEC component ($4 million civil penalty).
In addition, the DOJ announced that Zhengming Pan (a Chinese national and the former CEO of 500.com) was criminally indicted in June in connection with the same bribery scheme and charged with one count of conspiracy to violate the anti-bribery and books and records provisions of the FCPA, one count of violating the anti-bribery provisions of the FCPA, and two counts of violating the books and records provisions of the FCPA.
Issues To Consider From The Telefónica Venezolana Enforcement Action
This prior post went in-depth into the recent FCPA enforcement action against Telefónica Venezolana (a subsidiary of Telefonica S.A.) concerning a bribery scheme in Venezuela.
This post highlights additional issues to consider.
Timeline
Beginning in early 2020, the annual report of Telefónica S.A. (a Spanish company with shares traded in the U.S.) contained the following disclosure.
Issues To Consider From The Deere & Co. Enforcement Action
This previous post highlighted the $9.9 million Foreign Corrupt Practices Act enforcement actions against Deere & Co. concerning subsidiary conduct in Thailand.
This post highlights additional issues to consider.
No Prior Disclosure
It is rarely a surprise when a publicly-traded company (an issuer under FCPA speak) resolves an FCPA enforcement action because most issuers disclose FCPA scrutiny in an SEC filing.
Deere & Co. Resolves $9.9 Million FCPA Enforcement Action
As highlighted in this recent post, approximately 20% of Foreign Corrupt Practices Act enforcement activity takes place in the month of September as the SEC’s fiscal year comes to a close.
In September’s first FCPA enforcement (there have been several non-FCPA, FCPA enforcement actions already – see here), Deere & Co. has agreed to pay approximately $9.9 million to resolve an SEC matter based on the conduct of a subsidiary in Thailand. The enforcement action largely concerns Thai officials visiting massage parlors and participating in non-business travel funded by the subsidiary.
Issues To Consider From The SAP Enforcement Action
This previous post highlighted the recent FCPA enforcement action against SAP based on conduct in South Africa, Indonesia, Malawi, Kenya, Tanzania, Ghana, and Azerbaijan.
This post highlights additional issues to consider.
Timeline
As highlighted in this previous post, in mid-2017 SAP disclosed that it was under FCPA scrutiny concerning its business practices in South Africa.