Many Of The Topics Discussed In The FCPA Guidelines Are Not New
On June 9th, DOJ Deputy Attorney General Todd Blanche issued this memo to the head of the DOJ Criminal Division titled “Guidelines for Investigations and Enforcement of the Foreign Corrupt Practices Act.”
At first blush, it may seem like there are many new topics in the Guidelines.
What is perhaps new is that these topics are actually written down in a DOJ policy document, but as highlighted in this prior and future posts, many of the topics discussed in the Guidelines have been happening before our eyes for several years.
For instance, the Guidelines state:
Scrutiny Alerts And Updates
This post highlights a scrutiny alert regarding previous FCPA violator SQM and scrutiny updates regarding Calavo Growers (is it “boiling the ocean?) and the two instances of “monkey business” FCPA scrutiny involving Inotiv and Charles River.
SQM
As highlighted in this prior post, in 2017 Sociedad Quimica y Minera de Chile S.A. (SQM) (a chemical and mining company based in Chile with American Depository Shares listed on the New York Stock Exchange) resolved a $30.5 million FCPA enforcement action (DOJ and SEC) in relation to alleged conduct with Chilean officials.
SQM recently disclosed:
Is Calavo Growers “Boiling The Ocean”?
Not all companies under Foreign Corrupt Practices Act scrutiny disclose the fees and expenses to conduct an internal investigation.
In my estimation, approximately 25% of issuers do so.
Calavo Growers, Inc. has done so.
Citing Its FCPA Scrutiny (Among Other Things), NewAge Files For Bankruptcy
In July 2020, NewAge Inc. (a health and organic products company) announced a definitive agreement to acquire ARIIX, together with four additional companies in the e-commerce and direct selling channels, to “create a global firm with estimated pro forma revenues in excess of $500 million across more than 75 countries worldwide.”
As highlighted in this prior post, in August 2021, NewAge disclosed:
Friday Roundup
Cannabis industry, fooled me, questions abound, investigative fees and expenses, survey says, scrutiny alert, and for the reading stack.
It’s all here in the Friday roundup.
Cannabis Industry
This recent FBI public recording states: “As an increasing number of states change their marijuana legislation, the FBI is seeing a public corruption threat emerge in the expanding cannabis industry. States require licenses to grow and sell the drug—opening the possibility for public officials to become susceptible to bribes in exchange for those licenses.”