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DOJ / SEC Announce Net $1.66 Billion (The Largest Of All-Time) FCPA Enforcement Action Against Goldman Sachs In Connection With 1MDB Fund

By on October 23, 2020 in 2020 Enforcement Action, Abu Dhabi, DOJ Enforcement Action, Executive Compensation, Financial Services Industry, Goldman Sachs, Internal Controls, SEC Enforcement Action
Goldman

As highlighted in this prior post, in November 2018 the DOJ announced criminal charges against former Goldman Sachs employees Roger Ng and Tim Leissner, and Low Taek Jho (Jho Low – an individual “known to be close to various high-ranking officials in Malaysia and Abu Dhabi” who “worked as an intermediary in related to 1MDB and other foreign government officials on numerous financial transactions and projects involving Goldman and others) for paying bribes to various Malaysian and Abu Dhabi officials in connection with 1Malaysia Development Berhad (1MDB), Malaysia’s state-owned and state-controlled investment development company.

This prior post asked: what does this mean for Goldman Sachs?

We now know the answer as the DOJ and SEC announced (here and here) a net $1.66 billion FCPA enforcement action against Goldman Sachs and a related entity. This represents the largest FCPA enforcement action of all-time (see here for the prior top ten list).

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Brazilian Company Bribes Brazilian Officials, U.S. Collects Net $155 Million In FCPA Enforcement Action

By on October 15, 2020 in 2020 Enforcement Action, Brazil, DOJ Enforcement Action, Executive Enforcement Action, Financial Services Industry, Foreign Issuers, Foreign Non-Issuer Company, Individual Enforcement Action, Joesley Batista, Jurisdiction, Pilgrims Pride, SEC Enforcement Action, Wesley Batista
J&F

This recent post posed the question of whether “foreign” in the FCPA’s “foreign official” element means as it relates to the U.S. or as it relates to the specific company at issue. The post highlighted how in recent years the FCPA enforcement agencies have adopted the former interpretation in bringing FCPA enforcement actions against foreign companies for allegedly bribing their own “domestic” officials – but “foreign” as it relates to the U.S.

In yet another example, the DOJ and SEC announced yesterday (see here and here) that J&F Investimentos S.A. (J&F a private investment holding company based in Brazil that owns approximately 250 companies primarily involved in the meat and agriculture business) and a related entity resolved a net $155 million FCPA enforcement action for allegedly bribing Brazilian officials.

The enforcement action involved a: (i) DOJ component against J&F resolved through a plea agreement in which the company paid net $128.2 million; and (ii) an SEC component against J&F, a related entity, and two individuals in which the related entity paid approximately $26.8 million and the two individuals each paid a $550,000 civil penalty.

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World Acceptance Corp. Resolves $21.7 Million Enforcement Action Based On The Conduct Of A Former Wholly-Owned Mexico Subsidiary

By on August 7, 2020 in 2020 Enforcement Action, Declination Decisions, Financial Services Industry, Mexico, SEC Enforcement Action, World Acceptance Corp
world accept

As highlighted in this prior post, in June 2017 World Acceptance Corporation (a South Carolina based consumer finance company) disclosed that it was “conducting an internal investigation of its operations in Mexico, focusing on the legality under the U.S. Foreign Corrupt Practices Act and certain local laws of certain payments related to loans, the maintenance of the Company’s books and records associated with such payments, and the treatment of compensation matters for certain employees.”

As highlighted in this prior post, in May 2020 the company disclosed that “discussions with the SEC have progressed to a point that the Company can now reasonably estimate a probable loss and has recorded an aggregate accrual of $21.7 million with respect to the SEC matters.”

Yesterday, the SEC announced that World Acceptance Corp. agreed to resolve a $21.7 million FCPA enforcement action based on the actions of a former wholly-owned Mexican subsidiary it sold in July 2018.

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An Accounting Fraud Matter With Some FCPA Sprinkled In

By on April 7, 2020 in 2001 Enforcement Actions, American Bank Note Holographics, Financial Services Industry, Joshua Cantor, Saudi Arabia
holographic

[This post is part of a periodic series regarding “old” FCPA enforcement actions]

Foreign Corrupt Practice Act issues can be the tip of the iceberg with a company and its executives also engaging in other improper conduct. Such was the case in an enforcement action American Bank Note Holographics and its executive Joshua Cantor.

This 2001 criminal information against Joshua Cantor  (during the relevant time period President or Executive Vice President and General Manager of American Bank Note Holographics, Inc. (ABNH), a subsidiary of American Banknote Corporation) is primarily a securities / accounting fraud matter.

However, Cantor was also charged with count of conspiracy to violate the FCPA’s anti-bribery provisions.

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Friday Roundup

By on February 28, 2020 in China, Congressional Activity, Financial Services Industry, Herbalife, Lawrence Hoskins
Roundup

Oops, scrutiny alert, and does Senator Rubio understand the FCPA? It’s all here in the Friday roundup.

Oops

It’s probably not a good idea for Department of Justice officials to boast about Foreign Corrupt Practices Act trial court verdicts when post-trial motions are pending.

Here is what Assistant Attorney General Benczkowski said about the Hoskins FCPA case on December 4, 2019.

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