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Dubious As It Was, The Schering-Plough Enforcement Action Was Notable

By on February 5, 2018 in 1998-2004 Enforcement Actions, Books and Records, Charitable Contributions, Internal Controls, Pharmaceutical Industry, Poland, Schering-Plough, SEC Enforcement Action
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[This post is part of a periodic series regarding “old” FCPA enforcement actions]

This recent post discussed how from a compliance take-away standpoint the large, egregious, no reasonable minds could differ there was bribery, enforcement actions are the least important and least instructive.

Rather, the most instructive and thus important enforcement actions tend to be those that take the Foreign Corrupt Practices Act in a new direction, involve unique interpretations of law (not subjected to any judicial scrutiny of course) and thus pose new compliance challenges for business organizations. The SEC’s 2004 enforcement action against Schering-Plough, based on a bona-fide charitable contribution, certainly fits this mold.

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DOJ Charges Two Individuals With FCPA And Other Violations In Connection With An African Bribery Scheme On Behalf Of CEFC China Energy Company Ltd.

By on November 21, 2017 in 2017 Enforcement Actions, Anything of Value, CEFC China Energy Company Limited, Chad, Charitable Contributions, Cheikh Gadio, Chi Ping Patrick Ho, DOJ Enforcement Action, Gifts, Individual Enforcement Action, Jurisdiction, Uganda, United Nations
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Yesterday, the DOJ announced that Chi Ping Patrick Ho (of Hong Kong, China) and Cheikh Gadio (of Senegal) were criminally charged with conspiring to violate the Foreign Corrupt Practices Act, violating the FCPA, conspiring to commit international money laundering, and committing international money laundering.

Although not specifically mentioned in the DOJ’s indictment, it is easy to connect the dots that Ho is associated with China Energy Fund Committee (CEFC) and as noted here, CEFC is “fully funded by CEFC China Energy Company Limited.” Gadio is associated with Sarata Holding (a consulting and advising firm specializing in business and development partnerships with Africa).

Big picture – in the past two weeks – the DOJ has announced three core FCPA enforcement actions involving 9 individuals. (See here for the November 7th action against 5 individuals associated with Rolls-Royce and here for the November 9th action against 2 individuals associated with SBM Offshore).

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Jay Jorgensen On Walmart’s Enhanced Ethics & Compliance Program

By on October 24, 2017 in Auditing Issues, Charitable Contributions, Compliance, Internal Controls, Permits / Licenses / Customs / Tax, Third Parties, Wal-Mart
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Recently Jay Jorgensen (Walmart Executive V.P. and Global Chief Ethics and Compliance Officer) delivered a keynote address at The FCPA at 40 symposium hosted by Texas A&M University School of Law on October 12th.

Portions of Jorgensen’s address are published below with permission. Jorgensen’s entire keynote address will be published in a forthcoming issue of the Texas A&M Law Review. In the excerpted portion, Jorgensen talks about the transformation of Walmart’s ethics and compliance program with a focus on anti-corruption. Specifically, Jorgensen discusses Walmart’s approach to: third-party due diligence and payments; licenses and permits; donations and charitable contributions; financial controls; and enhanced training.

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As Is Fairly Typical, Uber’s FCPA Scrutiny Expands

By on September 19, 2017 in Charitable Contributions, Uber
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All instances of Foreign Corrupt Practices Act scrutiny have a “point of entry” – an occurrence which gives rise to initial FCPA scrutiny.

From there, FCPA scrutiny often expands into other business dealings, other countries, etc. This dynamic is a major reason why pre-enforcement action professionals fees and expenses are often the largest financial ramification of FCPA scrutiny, exceeding (often by multiples) settlement amounts in an actual FCPA enforcement action.

Approximately three weeks ago, it was reported (see here) that Uber Technologies was under FCPA scrutiny.

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No U.S. Nexus, No Problem As U.S. Brings $30.5 Million FCPA Enforcement Action Against Chilean Company In Relation To Its Conduct With Chilean Officials

By on January 18, 2017 in 2017 Enforcement Actions, Charitable Contributions, Chile, DOJ Enforcement Action, Foreign Issuers, Political Contributions, SEC Enforcement Action, Sociedad Química y Minera de Chile S.A.
SQM

Last week the DOJ and SEC announced (here and here) a $30.5 million Foreign Corrupt Practices Act enforcement action against Sociedad Quimica y Minera de Chile S.A. (SQM), a chemical and mining company based in Chile, in relation to its conduct with Chilean officials.

The enforcement action is rife with policy issues including the proper scope of FCPA enforcement given that there is no U.S. nexus alleged other than SQM having Series B shares, a form of American Depository Shares, listed on the New York Stock Exchange and thus being required to file periodic reports with the SEC.

The enforcement action included: (i) a DOJ criminal information charging SQM with violating the FCPA’s books and records and internal control provisions that was resolved via a deferred prosecution agreement in which the company agreed to pay a $15.5 million criminal penalty; and (ii) an SEC administrative order finding FCPA books and records and internal violations in which the company agreed to pay $15 million civil penalty.

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