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.
Top Ten Corporate FCPA Settlements
Set forth below is the current top ten corporate FCPA settlements of all-time actually secured by U.S. law enforcement (in other words net FCPA settlement amounts).
In reviewing this list, it is interesting to note that approximately 15 years ago, the largest FCPA settlement of all-time was $44 million.
Unlike certain other lists, the below list is calculated after consistently accounting for certain credits or deductions in several enforcement actions involving foreign companies and/or related foreign law enforcement actions.
About That “Virtuous Cycle” ….
In a recent speech, Deputy Attorney General Lisa Monaco stated:
“Encouraging companies to self-report misconduct can result in a virtuous cycle: by giving a path to resolution and declination to companies trying to do the right thing, we are able to identify and prosecute the individuals who are not.”
This is a common DOJ talking point.
Searching For The Supposed “Lull In Enforcement”
Reading the FCPA Blog is often like reading the Onion.
At first you think you are reading a legitimate news item but realize its satire, but you keep on reading for the entertainment value.
For instance this recent FCPA Blog post about “what happened at this year’s SCCE Compliance and Ethics Institute in Chicago” earlier this month states:
Regarding FCPA Enforcement
In yet another foolish post with false data, the FCPA Blog asks “is there a compliance crisis coming?”
Why might a compliance crisis be coming?
Because the author of the FCPA Blog post received an e-mail “from a compliance head at a Fortune 500: “We are being asked to cut back this year.”
What is driving the apparent “cuts to compliance budgets?”
As stated by the FCPA Blog “well, enforcement is way, way down.”