China Archives - FCPA Professor

Deutsche Bank Joins The Repeat Offender Club By Resolving Second FCPA Enforcement In Just 16 Months

By Mike Koehler on January 11, 2021 in 2021 Enforcement Actions, Abu Dhabi, China, Deutsche Bank, Financial Services Industry, Foreign Issuers, Internal Controls, Italy, Repeat Offenders, Saudi Arabia, Third Parties, Unsuccessful Bribery Schemes

In August 2019, Deutsche Bank paid $16.2 million “to settle changes that it violated the FCPA by hiring relatives of foreign government officials [in both the Asia Pacific Region and Russia] in order to improperly influence them in connection with investment banking business).” (See here and here for prior posts).

Late Friday, Deutsche Bank (a German investment bank and financial services company with shares traded on the NYSE between 2009 and 2016) joined the ever expanding list of FCPA repeat offenders as the DOJ and SEC announced (here and here) an approximate $122.6 million Foreign Corrupt Practices Act enforcement action focused on the company’s relationship with third parties in Abu Dhabi, Saudi Arabia, Italy, and China.

The approximate 16 month gap between Deutsche Bank’s FCPA enforcement actions is the shortest among the large group of FCPA repeat offenders.

Herbalife Resolves $123 Million Enforcement Action – Becoming The Latest Company To Resolve A Matter In Connection With Obtaining A Direct Selling Permit In China

By Mike Koehler on August 31, 2020 in 2020 Enforcement Action, China, DOJ Enforcement Action, Herbalife, Permits / Licenses / Customs / Tax, SEC Enforcement Action, Travel and Entertainment

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 the latest enforcement action involving another company in the same general industry involving the same general conduct, the DOJ and SEC recently announced (here and here) that Herbalife agreed to pay approximately $123 million to resolve a parallel DOJ and SEC enforcement action. The corporate action follows the DOJ and SEC’s November 2019 enforcement action against former Herbalife China executives 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).

Apparently Anything Involving China Is Part Of The DOJ’s China Initiative

By Mike Koehler on August 6, 2020 in China

As highlighted in this prior post, in November 2018 the Department of Justice announced a China Initiative. Among the goals of the China Initiative was to ‘identify Foreign Corrupt Practices Act (FCPA) cases involving Chinese companies that compete with American businesses.”

Recently, the DOJ updated its China Initiative page and provided approximately 60 “China-Related Case Examples.”

Two FCPA enforcement actions were included. As stated by the DOJ:

Commission Payments To Chinese Lab Personnel And Doctors Leads To Enforcement Action

By Mike Koehler on March 31, 2020 in 2005 Enforcement Actions, China, Diagnostic Products Corp, DOJ Enforcement Action, Healthcare Products, Healthcare Providers As Foreign Officials, SEC Enforcement Action

[This post is part of a periodic series regarding “old” FCPA enforcement actions]

In 2005, the DOJ and SEC brought a coordinated enforcement action against Diagnostic Products Corp. (DPC – a California-based company which provided immunodiagnostic systems and immunochemistry kits) and its wholly-owned subsidiary DPC (Tianjin) Co. Ltd. (See here and here).

The conduct at issue focused on DPC Tianjin making cash commission payments to laboratory personnel and doctors employed by hospitals owned by the Chinese government to obtain and retain certain business involving the sale of immunodiagnostic systems, immunochemistry kits, and other medical equipment.

The overall settlement amount was approximately $4.8 million (a $2 million criminal fine and approximately $2.8 million in disgorgement and prejudgment interest paid to the SEC).

Friday Roundup

By Mike Koehler on February 28, 2020 in China, Congressional Activity, Financial Services Industry, Herbalife, Lawrence Hoskins

Oops, scrutiny alert, and does Senator Rubio understand the FCPA? It’s all here in the Friday roundup.

Oops

It’s probably not a good idea for Department of Justice officials to boast about Foreign Corrupt Practices Act trial court verdicts when post-trial motions are pending.

Here is what Assistant Attorney General Benczkowski said about the Hoskins FCPA case on December 4, 2019.

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Deutsche Bank Joins The Repeat Offender Club By Resolving Second FCPA Enforcement In Just 16 Months

Herbalife Resolves $123 Million Enforcement Action – Becoming The Latest Company To Resolve A Matter In Connection With Obtaining A Direct Selling Permit In China

Apparently Anything Involving China Is Part Of The DOJ’s China Initiative

Commission Payments To Chinese Lab Personnel And Doctors Leads To Enforcement Action

Friday Roundup

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