McKinsey Entity Resolves Net $61.425 Million FCPA Enforcement Action
The DOJ has announced that McKinsey and Company Africa (Pty) Ltd (“MCKINSEY AFRICA”), a wholly owned and wholly controlled subsidiary of McKinsey & Company (an international consulting firm) has resolved a Foreign Corrupt Practices Act enforcement action based on alleged bribery schemes in South Africa.
The conduct at issue largely focuses on Vikas Sagar (a citizen of India, a lawful permanent resident of the United States, a resident of South Africa) who was a partner and senior partner of McKinsey working in McKinsey’s office in Johannesburg, South Africa, and a stockholder, employee, and agent of McKinsey. In connection with the same conduct alleged in the McKinsey enforcement action, the DOJ also announced the unsealing of a guilty plea in which Sagar pleaded guilty to conspiracy to violate the FCPA’s anti-bribery provisions. (The criminal charges against Sagar were filed in December 2022).
Boston Consulting Group Disgorges $14.4 Million In FCPA Matter
So-called “declinations with disgorgement” (first used by the DOJ in a Foreign Corrupt Practices Act in 2016) are just another resolution vehicle – among others – used by the DOJ to resolve alleged instances of FCPA scrutiny.
The latest example concerns Boston Consulting Group.
An August 27th letter from the DOJ to the company’s counsel (Cadwalader attorneys Jason Halper and Gina Catellano) and posted to the DOJ’s Corporate Enforcement Policy Declination Page on August 28th states in full:
Gartner Resolves $2.5 Million Enforcement Action
Late last Friday afternoon on a holiday weekend, the SEC released one of the more pedestrian FCPA enforcement actions of recent memory.
The action involved Gartner Inc. (a technological research and consulting company) concerning conduct in 2014 and 2015 in South Africa.
To resolve the matter, Gartner agreed to pay approximately $2.5 million (856,764 in disgorgement and prejudgment interest and a $1.6 million civil penalty).
In summary fashion, this administrative order states: