Once Again, Rebooting A Long-Standing FCPA Proposal, This Time In The Aftermath Of A Recent Disclosure By Calavo Growers
Including the first time I proposed this concept in 2010, this is the 12th time I have written this general post (see here, here, here, here, here, here, here, here, here, here and here for the previous versions). Until things change I will keep writing it which means I will probably keep writing this same general post long into the future.
The proposal is this: when a company voluntarily discloses an FCPA internal investigation to the DOJ and/or SEC and when one or both of the enforcement agencies do not bring an enforcement action, have the enforcement agency publicly state, in a thorough and transparent manner, the facts the company disclosed and why the enforcement agency did not bring an enforcement action based on those facts.
Digicel Scrutiny Update
In November 2024, Digicel disclosed Foreign Corrupt Practices Act scrutiny (see here for the prior post).
Specifically, the company stated:
“We voluntarily disclosed to the US Department of Justice information related to possible violations of the US Foreign Corrupt Practices Act. We are cooperating fully with the DOJ and will continue to do so.”
As highlighted in this recent article:
Was This Advocating For A “Pause” In Enforcement?
What is the substantive difference between a “pause” in FCPA enforcement and advocating for a enforcement agency policy that would result in no FCPA enforcement action in certain instances?
Stanley Sporkin was the Director of the SEC’s Division of Enforcement in the mid-1970s and played a key role in addressing the foreign corporate payments issue that led to enactment of the FCPA in 1977.
Some refer to him as the “Grandfather of the FCPA,” a term I always found a bit unusual given that Sporkin’s SEC never wanted to play any role in enforcing the FCPA’s anti-bribery provisions.
After leaving the SEC and having a distinguished career in many roles – including as a federal court judge – in a 2006 speech, Sporkin noted that the DOJ and SEC “can do something forward-looking which would be win-win for both the government and the private sector.”
Sporkin proposed an “FCPA Immunization-Inoculation Program. ”
Once Again, Rebooting A Long-Standing FCPA Proposal, This Time In The Aftermath Of A Recent Disclosure By Stanley Black & Decker
Including the first time I proposed this concept in 2010, this is the 11th time I have written this general post (see here, here, here, here, here, here, here, here, here and here for the previous versions). Until things change I will keep writing it which means I will probably keep writing this same general post long into the future.
The proposal is this: when a company voluntarily discloses an FCPA internal investigation to the DOJ and/or SEC and when one or both of the enforcement agencies do not bring an enforcement action, have the enforcement agency publicly state, in a thorough and transparent manner, the facts the company disclosed and why the enforcement agency did not bring an enforcement action based on those facts.
As highlighted in this prior post, in early 2023 Stanley Black & Decker, Inc. (a manufacturer of industrial tools and household hardware and provider of security products) disclosed:
Once Again, Rebooting A Long-Standing FCPA Proposal, This Time In The Aftermath Of A Recent Disclosure By Cisco
Including the first time I proposed this concept in 2010, this is the 11th time I have written this general post (see here, here, here, here, here, here, here, here, here, and here for the previous versions).
Until things change, I will keep writing it which means I will probably keep writing this same general post long into the future.
The proposal is this: when a company voluntarily discloses an FCPA internal investigation to the DOJ and/or SEC and when one or both of the enforcement agencies do not bring an enforcement action, have the enforcement agency publicly state, in a thorough and transparent manner, the facts the company disclosed and why the enforcement agency did not bring an enforcement action based on those facts.