Sagar Sentenced To Time Served
In December 2024, McKinsey and Company Africa (Pty) Ltd., a wholly owned and wholly controlled subsidiary of McKinsey & Company (an international consulting firm) resolved a net $61.4 million Foreign Corrupt Practices Act enforcement action based on alleged bribery schemes in South Africa.
The conduct at issue largely focused on Vikas Sagar (a citizen of India, a lawful permanent resident of the United States, and 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.
Nigerian “Foreign Official” Convicted Of Various Criminal Offenses In Connection With Bribery Scheme
This previous post highlighted a DOJ criminal enforcement action against Paulinus Iheanacho Okoronkwo (also known as Pollie – a dual citizen of the U.S. and Nigeria who resides in California).
Pollie was an attorney admitted to the State Bar of California and the “sole proprietor of the Law Office of Pollie Okoronkwo where he practiced immigration law and personal injury matters, such as slip-and-fall and motor vehicle injury cases.”)
The indictment alleged that Okoronkwo was also a “foreign official serving as the general manager of the NNPC’s [Nigerian National Petroleum Corporation] Upstream Division” and further alleged the following relevant background.
A “Foreign Official” Is Sentenced To Approximately 13 Years For Money Laundering
When the Foreign Extortion Prevention Action (FEPA) was enacted in late 2023 it was portrayed by some as filling a legal gap given that the Foreign Corrupt Practices Act only captures the supply side of “bribery” and not the “demand side” (the “foreign officials” who receive or request bribes).
Like many things written in the FCPA (and related) space, the assertion lacked context because it ignored the fact that the Department of Justice has long used other criminal statutes (most often money laundering laws) to criminally charge “foreign officials” in connection with alleged bribery schemes before and even after FEPA was enacted. (See here).
Thus, was there really a meaningful “gap” that FEPA was actually filling?
The latest example concerns Omar Ambuila (pictured – a Colombian national employed by the Colombian Tax and Customs Directorate).
A Closer Look At Korea Supply Co. v. Lockheed Martin
Since California Attorney General Rob Bonta issued this Legal Advisory titled “Alert to Businesses on Violations of the Foreign Corrupt Practices Act” (see here for the prior post), there has been commentary suggesting that a “new chapter of FCPA enforcement” has begun as California (and perhaps other states) may become a “new sheriff in town” and bring FCPA-related enforcement actions due to the current “pause” of FCPA enforcement.
Let’s pause for a moment for the following question: can anyone identify any “FCPA-like” enforcement action ever brought by the Attorney General of California. (Note: not an “FCPA-like” action brought by a private plaintiff, but an “FCPA-like” action brought by the State of California). More broadly, can anyone identify any “FCPA-like” enforcement action ever brought by any state?
California Attorney General – FCPA “Violations Are Actionable Under California’s Unfair Competition Law”
On February 10th, President Trump issued an Executive Order titled “Pausing Foreign Corrupt Practices Act Enforcement to Further American Economic and National Security.”
Conduct in violation of the FCPA or involving the same core facts may also be actionable under other laws. (See here for the article FCPA Ripples).
Recently, California Attorney General Rob Bonta issued this Legal Advisory titled “Alert to Businesses on Violations of the Foreign Corrupt Practices Act.”
In pertinent part, the Advisory states: