Fact Checking The White House Fact Sheet
The White House recently released this fact sheet titled “U.S. Achievements in the Global Fight Against Corruption.”
This post fact checks the fact sheet and highlights the false claims in it.
Among other things, the fact sheet highlights “enforcing our bans on foreign bribery and money-laundering – and pressing other countries to do the same.” and states:
Did You Know …
Did you know …
Since 2004, there have been 162 companies that have resolved a DOJ FCPA enforcement action. In only 40 of the 162 corporate FCPA enforcement actions (25%) has the DOJ also brought criminal FCPA charges against an employee of the company resolving the action. In other words, 75% of DOJ corporate FCPA enforcement actions lack related criminal FCPA charges against an employee of the company resolving the action.
Largest SEC Only FCPA Enforcement Actions
So-called “issuers” under the Foreign Corrupt Practices Act (that is generally companies with shares traded on a U.S. exchange or otherwise with reporting obligations to the Securities and Exchange Commission) are subject to both Securities and Exchange Commission and Department of Justice FCPA enforcement.
However, many FCPA enforcement actions against issuers are SEC only and lack a DOJ component. Although FCPA enforcement agencies rarely have to “prove” an FCPA violation against issuers (rather issuers typically resolve an enforcement action through a resolution vehicle not subjected to any meaningful judicial scrutiny), theoretically the DOJ in a criminal action has a much higher burden of proof (beyond a reasonable doubt) compared to the SEC in a civil action (preponderance of the evidence).
Regardless of the reasons for SEC enforcement actions against issuers that lack a DOJ component, set forth below are the 25 largest SEC only FCPA enforcement actions.
The FOREIGN Corrupt Practices Act
The “Foreign” in Foreign Corrupt Practices Act refers to the location of the bribe recipient (as in “foreign,” non-U.S. officials).
However, the “Foreign” in Foreign Corrupt Practices Act might as well refer to the location of the bribe payor as well – in other words the location of the company resolving the FCPA enforcement.
This recent post highlighted that approximately 75% of DOJ corporate enforcement actions since 2021 have been against foreign companies.
What do the numbers show regarding SEC FCPA enforcement?
The FOREIGN Corrupt Practices Act
Since 2021, the DOJ has resolved 19 corporate Foreign Corrupt Practices Act enforcement actions.
The “Foreign” in Foreign Corrupt Practices Act refers to the location of the bribe recipient (as in “foreign” non-U.S. officials).
However, the “Foreign” in Foreign Corrupt Practices Act might as well refer to the location of the bribe payor as well – in other words the location of the company resolving the FCPA enforcement.
As highlighted below, of the 19 DOJ corporate FCPA enforcement actions since 2021, 14 of the 19 enforcement actions (74%) have involved foreign companies.
Set forth below are the 19 corporate DOJ FCPA enforcement actions since 2021 along with a general description of the company involved.